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IF VODKA WAS A teenager it would probably have spent the past few years sulking in its bedroom, writing bad poetry about the unfairness of gin getting all the attention while it, the most mixable of all spirits and the biggest global category by far, was failing in column inches – at least favourable ones.

After all, gin just tastes of juniper and vodka had done its damnedest to shake off its flavourless, odourless (which, if it was a teenager, it almost certainly would not be) reputation by creating a raft of exciting flavours, from peanut butter & jelly to smoked salmon or bacon, getting itself filtered through diamonds and gaining all manner of celebrity endorsement. What more did consumers want?

And then along came the ‘craft’ movement and it started to look like people actually wanted less, not more.

No drinks category has escaped ‘craft’, although vodka may have come later to the party than most. Maybe because it was too busy sulking in its bedroom.

Indeed, Joe McCanta, brand ambassador for the French-produced super-premium Grey Goose, refers to the flavoured trend as vodka’s “awkward teenage period, where brands were being almost like mother’s milk.

“It was all about nostalgia – that’s not going to give complexity”.

But, as he adds, trends come and go and he predicts a lot of brands will “fall by the wayside as vodka comes out of this phase”. But the survivors and the newcomers have grasped the concept that consumers are seeking out the ‘natural’ in every aspect of their purchases, from food and cosmetics to drinks, and this is having an effect on the spirits sector as a whole.

While what actually constitutes ‘craft’ is something of a grey area, it’s always been black and white for Grey Goose. “We have always been the same thing since we launched 20 years ago. People were thinking about vodka as a tasteless, odourless spirit and we came out trying to change that. Now a lot of people are talking about taste and how you achieve that,” says McCanta.

PRODUCTION

Grey Goose was created by former cognac-maker Françoise Thibault, who still today oversees all the production, from field to bottle, and tests every batch. The spirit uses the same grade of wheat that is used for French bread and pastries, the flour is milled onsite and the water is naturally filtered through limestone from a well in Gensac-la-Paulle in the Cognac region.

This is the kind of story today’s spirits consumers literally lap up and helps to account for Grey Goose being the number two best selling and number four top trending vodka in Drinks International’s 2017 Bars Report.

And it hasn’t hurt Absolut either, which sits just behind Grey Goose in both categories. “The ‘craft’ movement is showing that consumers more and more value genuine brands and production methods,” says Henrik Ellström, director of brand strategy for Absolut, “and Absolut has everything to win from this considering our authentic brand story and strong heritage and quality credentials.

“Every bottle of Absolut is made by a small community of passionate people in the village of Åhus in southern Sweden, where we produce our vodka from winter wheat grown in the local area and water from our own well. The growth of craft brands is significant and has intensified the competition within vodka and spirits globally and given consumers a wider choice.”

Another well-established brand welcoming the craft movement is Stoli. President of brand owner SPI Group Dmitri Efimov says the emphasis on craft among consumers has been positive for the brand, leading consumers to classic cocktails such as Martinis and Mules, “cocktails that have long been central to Stoli”. He adds: “Furthermore, the popularity of craft has played a part in double-digit growth for our Elit vodka brand made from single-source grain, the world’s first ultra-luxury vodka.”

There’s been a knock-on effect, too, in terms of innovation around the vodka category.

Efimov continues: “We’ve seen that, for Stoli, when consumers learn of our heritage they trust us to deliver that same excellence in our innovations. It’s this trust that has enabled us to embark outside of flavours to innovate with products such as Stoli Ginger Beer to accompany our vodka in the classic, popular Moscow Mule cocktail and Stoli Gluten Free to appeal to those subscribing to that rising lifestyle. We’ll continue this approach in the near future.”

FAR FROM OVER FOR FLAVOURS

But, while those weird and wonderful smoked salmon and bacon vodkas may have had their day, it’s far from over for flavours – although, once again, there’s an emphasis, certainly for Absolut, on natural.

Says Ellström: “We are seeing strong consumer interest in natural, refreshing and more straightforward flavours and will continue to explore new flavours to satisfy these consumer needs. We are also seeing consumers becoming more health aware and even more interested in the Absolut range of flavours as they don’t contain any sugar. We are also just about to launch a brand new offering: Absolut Lime.

“We believe that flavours will continue to be relevant for consumers in the future but that the category will move away from increasingly differentiated and niche flavours to more authentic and approachable flavours.”

But, as has been seen in other spirits sectors, the craft movement will bring in new, small players, and one such is Scotland’s Dunnet Bay Distillery, run by Martin and Claire Murray, who recently launched Holy Grass vodka.

The couple originally began making gin, but a fluke find turned them to vodka. Martin Murray says: “Vodka was not even on our radar – it was all about seasonal gins. But I researched the area and found out about Holy Grass. This is the only place it grows outside mainland Europe. I tried it and it was lovely but didn’t work with gin at all. I thought I would give it a go with vodka.”

The gamble paid off. After launching in 2015, Holy Grass – so called because it was once used to bring a sweet, vanilla smell to church floors – won a raft of awards last year. It’s said to be a celebration of local produce and ingredients, and is also “infused with a carefully crafted vapour of Highland apples and apple juice”.

It’s a niche spirit to be sure but still managed to sell 8,500 bottles last year and is exported to Germany and the Netherlands with distribution already in place for Japan. “We wanted to be the first to do a grass vodka in the UK.” As Murray remarks, there are no bison in Scotland, but maybe there’s a large, shaggy beast in Poland that should be looking over its shoulder.

Murray’s take on the vodka market is that it hasn’t really caught up with the kind of innovation and experimentation that’s been seen in gin.

“It’s been seen as a way to make a soft drink alcoholic. Gin has been a lot cleverer with garnishes etc. Vodka only has two customers – those who want the cheapest they can get and those who want really high premium. The in-between market has struggled and mid-priced purchasers don’t upgrade.”

FUTURE

Euromonitor senior analyst Spiros Malandrakis tends to agree: “Caught between a maturity and stagnation-induced state of torpor in its eastern European bastion and the hard reality of committing the cardinal sins of over-indulgence, navel gazing and inflated pricing in western markets cyclically abandoning the category, the hangover for vodka will set in further.

“Following decades of unflinching, seemingly infinite growth, its short to medium-term future will hence become increasingly more polarised. On the one hand, micro offerings will capitalise on their genuine or perceived artisanal credentials, adopting increasingly clearer localisation kudos, while embracing a ‘farm to bottle’ mentality to support their premium pricing.

“On the other hand, mass mainstream brands will most likely back-pedal and hesitantly step out of the overcrowded craftsmanship bandwagon to return to their unpretentious, utilitarian roots and a focus on high energy environments, shot occasions and the support of musical or cultural scenes relevant to the younger cohorts of the millennial demographic.

“Following the cannibalising effect resulting from the congested flavoured innovation arena, planned obsolescence and quicker activation periods will de-clutter the category and make it more resilient to the volatility of fads.”

Looking at the broader picture, IWSR shows consumption figures have taken a hit for vodka in some of its biggest markets, including Russia, but there are “bright spots”, according to Euromonitor’s Jeremy Cunnington – one being Asia. “Countries such as Thailand, China, Vietnam and South Korea are all offering strong growth from small bases and, more importantly, great opportunities for international vodka brands.

“All these markets have similar characteristics with the strong growth of vodka being driven by many of the trends that drove growth in western markets. Its mixability and lack of strong taste has led to growing cocktail/mixed drink cultures in these markets led by younger drinkers, especially women, aided by the rising influence of western culture.”

Grey Goose’s McCanta agrees that Asia’s younger drinkers are a key market, but doesn’t think it has to do especially with gender: “A lot of younger people are coming into vodka because no one wants to drink what their parents drink. Asia’s been very whisky-led and a lot of the younger generation are discovering vodka for the first time.”

So maybe vodka is revisiting its teenage years – the creative ones where revelations come, the big questions get asked and answered and art, not to mention craft, come to the fore.