SLR p22-31 Awards Jun09.qxp 01/06/2009 10:22 Page 25
inside business
MASTERPLAN FOR PROFIT 2009
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BEERS, WINES & SPIRITS
Drinks marker in good
spirits in Scotland
With vodka overtaking whisky as the number one spirit in the UK for the first time,
getting your BWS offering right means paying close attention to the high margin spirits
you have available in your store, says Dannoff Vodka.
THE VODKA MARKET The vodka category is currently opportunity to increase profits.
This year has seen vodka over very buoyant despite the Heritage is important for
take whisky for the first time, economic down turn and seems consumers in the UK, and the
making it the number one selling to be benefitting from the Baltics are well renowned for
spirit in the UK. The total vodka increase in consumers socialis- quality vodka making. The
market is now worth £3bn and is ing at home. The UK’s annual Latvian distillery where Dannoff
growing at 21% year on year*, vodka sales are likely to reach the is made has been around for over
with the off trade alone worth £2bn mark and the category, 100 years and has distilled vodka
£910m. which has seen value sales rise by for world leading brands.
Much of the growth has been 20% in five years, is considerably Dannoff is quadruple distilled
driven by two key trends in the outperforming other white spir- which ensures a completely
UK: the rise of ‘at home drink- its. This is largely due to its core neutral PH and a smoother,
ing’ and ‘premiumisation’. strength – versatility – and its purer taste that is usually only
appeal among younger drinkers. found in super-premium vodka.
MERCHANDISING TIPS Distillation is a simple process
1. Stock and display vodka promi- TRENDS ARE CHANGING in which quality is the key. In
nently – it’s the leading drinks Trends in vodka consumption are basic distillation, alcohol is
category and offers a fantastic changing. A recent poll has extracted, via evaporation, from a
profit opportunity for retailers revealed that 60% of Britons now fermented liquid heated in a still.
2. Carry a comprehensive range spend Saturday nights with Dannoff is quadruple distilled
of brands and sizes with other friends and family at each other’s and optimal spring water added.
spirits. Not all shoppers will homes, rather than going out.*** The vodka is then filtered
buy the leading brand, so stock This creates an opportunity to through a propriety system called
a quality value alternative. drive off trade sales. active carbon filtration, to remove
3. Younger people shop more Instead of just consuming any remaining impurities. When
frequently and use smaller vodka as shots or with mixers, passed through this range of
stores, so stocking up on consumers are now trying cock- increasingly efficient filters, the
contemporary products. tails and long serves without liquid emerges clean and
4. Consider a ‘big night in’ compromising on quality. polished for bottling. The quality
section: stocking Dannoff next management system at the
to mixers, snacks and even PREMIUMISATION distillery is certified according to
DVDs (while you still can!) will Premiumisation is the other key the world standards and is annu-
drive cross category sales. trend in vodka, with consumers ally updated according to the ISO
5. Stock new launches backed by increasingly looking out for supe- 9001-2000 standard. Dannoff is
heavy investment, and which rior products. However, given the also never blended so it main-
are helping to drive the market current economic climate, there tains a neutral PH of 6.0 – in the
6. Create interest during key is an opportunity for good quality same league as super-premium
seasonal periods e.g. summer, brands that don’t carry a and luxury brands. Dannoff has
when sales of alcohol are high premium price tag. an ABV of 37.5% and retails for
7. In-store theatre – create excite- £10.99 for 70cl.
ment by using POS and free ABOUT DANNOFF VODKA
standing display units to Launched by Universal Brand RESPONSIBLE DRINKING
attract new and existing cate- Limited in September 2008, Universal Brand Limited puts
gory shoppers. Off-shelf Dannoff offers a premium qual- social responsibility at the heart
display units can add 100% ity vodka at an affordable price, of the business. Dannoff is a
Sources: *Figures from Datamonitor.
additional sales value to the offering consumers value for member of the Portman group
**Mintel report, March 2009. ***Hali-
retailer. money and retailers an exciting and supports Drinkaware. fax Home Insurance Survey 2008.
WWW.55NORTH.COM JUNE 2009 l SCOTTISH LOCAL RETAILER l 25
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