Absolut Apeach Rolls Out In Kansas
(April 18, 2005) When it comes to flavored vodkas, most of the activity is in just four flavors: Citrus, orange, raspberry, and vanilla. The company that can predict “the next big thing” flavor wise likely holds the key to success. At Absolut, they believe the next break-out flavor will be peach. So this month they’ve made Absolut Apeach -- a new peach-flavored vodka -- the seventh entry in their flavored vodka lineup.
“The top flavors are Citron, Mandrin, Raspberri, Vanila, and other,” said Rick Tapia, Brand Manager for Absolut. “Other includes everything else. Peach is the next other flavor. If you look at other consumer goods, it’s a flavor that we believe consumers are educated on and enjoy. We expect it to move up in the other category and hopefully become the fifth top flavor.”
Absolut has a history of picking winners when it comes to flavors. Virtually all Absolut flavors are the leading flavored vodkas in their respective flavors, and most achieved that market dominance within a few weeks of their release.
“Absolut has always been among the best selling in the flavored vodka segment, and with recent consumer data and trends showing increased interest in peach as a category, the stage has been set for the dominance of Apeach,” said Carl Horton, president and chief executive, The Absolut Spirits Company.
Vodka is the category to dominate these days. While some spirits categories have struggled or even declined in the past few years, vodka has posted healthy sales growth fueled by flavored vodkas. At Absolut, U.S. sales to retailers increased 3.4 percent topping 4.6 million 9-liter cases in 2004. Flavored vodka accounted for 23 percent of those sales and sales grew 25 percent over the previous year.
“We understand the flavored vodka customer to be a little younger, from legal drinking age on up,” said Tapia. “So every year you have a whole new class of customers. We have to continue our recruitment efforts.”
“Right now our society has gone to very sweet drinks,” continued
Tapia. “They like to drink these things in mixed cocktails. They like
the flavors.”
New flavors are key to keeping new consumers coming to the category. Absolut
makes it a point to stay ahead of the curve of innovation.
“We have a loyal consumer base,” said Tapia. “We need to be innovative and introduce new flavors to them. For 2005 it’s Apeach. In 2006 it could be something else. If we don’t do it, somebody else will.”
What about the risk of too many flavored vodkas -- the possibility of
new flavors
cannibalizing sales for established brands? Tapia’s convinced it’s
not an issue.
“Because of the momentum of flavors as a whole we don’t think we’re
there yet,” said Tapia. “A few years down the road we may need to
think about it. For now, we’ve just changed the landscape of what people
drink.”
Absolut Apeach has a sophisticated aroma with the distinct character of peach and tropical fruit. The complex taste stems from mellow peaches and tropical fruits -- the aftertaste is long and smooth, providing a full-bodied foundation for cocktails. The Absolut Apeach bottle is dressed in shades of pink, yellow, and orange hues inspired by the skin of a succulent peach.
Though peach is a flavor consumers are familiar with in other consumer goods, it’s a relatively new idea in flavored spirits. That means a big part of the marketing campaign is an educational campaign.
“Everybody likes it,” said Tapia. “But it’s not only about introducing a new flavor. It’s about educating consumers as to the mixability. These are very young consumers -- they need to learn how to mix it.”
Accordingly, Absolut will concentrate most of its marketing dollars on on-premise promotions. The goal will be two-fold. First the company will educate bartenders about Absolut Apeach and provide them with drink recipes. Secondly, the on-premise promotions will focus on persuading consumers to try the product.
The second largest chunk of the Absolut Apeach marketing budget will be spent on television ads. The company will also be running radio spots and print ads in national magazines.
To help support off-premise sales, Absolut’s providing channel strips, case cards, and most importantly a recipe book with Apeach drink recipes.
eyond all that, Tapia expects the Absolut name to give consumers the confidence to try the new Absolut Apeach.
“For many people Absolut is vodka,” said Tapia. “Everybody knows the brand. Nobody has anything bad to say about it. Because of our size the trade will support us.”
A brand name people know and love. A history of developing winning flavors. A strong marketing campaign to support the product launch, including consumer advertising, bar promotions, and off-premise POS. A quality product. It all points to one conclusion: Absolut Apeach is a winning concept sure to be a retail hit.
“With the efforts behind this year’s launch it could definitely become number one in peach vodka,” said Tapia.
Absolut Apeach is available in Kansas through Standard Beverage.