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Emperor's new clothes?

Europe Intelligence Wire

| February 08, 2008 | COPYRIGHT 2008 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

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Dave Broom, spirits writer: "Vodka has got itself into an interesting bind. It has pushed neutrality so far that the only point of difference between brands has been the look and not the flavour, because there was no flavour. However, the consumer, having been fed a line that vodka equals no flavour, doesn' see why they should pay extra for something which has the same (lack of) taste as a cheaper brand! " I've noticed in the past few years that firms are pulling back from the neutral line and have begun to play the heritage card (if they have one ) . The ability of vodka brands to show there is a real and perceivable difference between brands will be crucial in building a premium category. I suspect most consumers will see this subtle change of language from 'neutral' to 'purity with character' as another instance of the emperor's new clothes." Sue Beck, senior brand manager, Halewood International: "I think the difference between premium and cheaper is all in the branding, which includes positioning, design and communication with consumers. It is also about where it is featured.

"I think the difference that some premium vodkas make of the water used, or the different processes, can be relevant if it is drunk straight in the traditional manner . The way British consumers drink vodka - in cocktails or with mixers - means the flavour can become less important . Red Square is not a super-premium vodka - it is good for mixing and good value , but still a quality product." Ian Wisniewski, spirits writer: "Price positioning is an important aspect of branding, with the price point determined by various factors, led by production costs. The vodka category has segmented into various price points, with the available range of brands offering a variety of vodka styles . From neutral to mellow , through to more rounded, pronounced characteristics, while also catering for consumers on various budgets and with various motivations ." Geoff Kelly, UK spokesman for Cape North Vodka: "I don' agree that vodka at the top end of the market has to be as neutral as possible . Otherwise why would a journalist have described Cape North as 'creamy-smooth on the palate with subtle flavours of citrus, vanilla and wheat grain'? " At the premium and ultra-premium end of the market, producers go to great lengths to select the right ingredients and to handle the spirit carefully after distillation and when filtering - so not to lose the subtleties in the liquid they have carefully produced. This is why the makers of Cape North place such emphasis on the water they use from DjupbAckens KAlla, the famous spring in Sweden, and also on the single -grain French wheat they buy . " Katherine Abram, spirits buyer, Tesco: "Unlike most premium spirits such as malt whisky or aged rum, premium vodka is unique in that rather than being more complex and having more flavour, it has less of an aroma and is more neutral. As most people tend to drink vodka with a mixer and lots of ice as a long drink, a cheaper or mid-range vodka is more of an obvious choice. However, it can be worth trading up to get a smoother finish, particularly if drinking in a cocktail like a martini. Also, in flavoured vodkas the premium brands tend to use ...

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