1

Contents
1 Introduction
2 Etymology
3 History
o 3.1 Russia
4 Today
5 Production
o 5.1 Distilling and filtering
o 5.2 Flavoring
6 European Union regulation
7 Health
8 List of vodkas
9 Its share in international market

2

RUSSI AN VODKA
I NTRODUCTI ON
Vodka (Polish: wdka), (Russian: ) is a distilled beverage. It
is composed primarily of water and ethanol with traces of impurities
and flavorings. Vodka is made by the distillation of fermented
substances such as grains, potatoes, or sometimes fruits.

3

Traditionally prepared vodkas had an alcoholic content of 38% by
volume. Today, the standard Polish, Russian and Lithuanian vodkas
are 40% abv (80 proof), although many non-export Russian brands
are sold at 38%. The European Union has established a minimum of
37.5% alcohol by volume content for any European vodka to be
named as such. Products sold as vodka in the United States must
have an alcoholic content of 40% or more. Homemade vodka,
referred to as "samogon" or "samohon" in Russia and the Ukraine,
sometimes have an ABV as high as 62%.
Vodka is traditionally drunk neat in the vodka belt countries of
Eastern Europe and around the Baltic Sea. It is also commonly used
in cocktails and mixed drinks, such as the Bloody Mary,
Screwdriver, Sex on the Beach, White Russian, Black Russian,
vodka tonic, and in a
4

Etymology

The "vodka belt" countries of Northern, Central and Eastern Europe are
the historic home of vodka, and also have the highest vodka
consumption in the world
The name "vodka" is a diminutive form of the Slavic word voda
(water), interpreted as little water: root - (vod-) [water] + -- (-k-
) (diminutive suffix, among other functions) + -a (postfix of
feminine gender).
The word "vodka" was recorded for the first time in 1405 in Akta
Grodzkie, the court documents from the Palatinate of Sandomierz in
Poland. At the time, the word vodka (wdka), referred to chemical
5

compounds such as medicines and cosmetics' cleansers, while the
popular beverage was called gorzaka (from the Old Polish gorze
meaning to burn), which is also the source of Ukrainian horilka
(). The word vodka written in the Cyrillic alphabet appeared
first in 1533, in relation to a medicinal drink brought from Poland to
Russia by the merchants of Kievan Rus'.

6

A number of Russian pharmaceutical lists contain the terms "vodka
of grain wine" ( vodka khlebnogo vina) and
"vodka in half of grain wine" ( vodka
polu khlebnogo vina). As alcohol had long been used as a basis for
medicines, this implies that the term vodka could be a noun derived
from the verb vodit, razvodit (, ), "to dilute with
water". Grain wine was a spirit distilled from alcohol made from
grain (as opposed to grape wine) and hence "vodka of grain wine"
would be a water dilution of a distilled grain spirit.
While the word vodka could be found in manuscripts and in lubok
(, pictures with text explaining the plot, a Russian predecessor
of the comic), it began to appear in Russian dictionaries in the mid-
19th century. It is, however, already attested in Smuel Gyarmathi's
Russian-German-Hungarian glossary (1799), where it is glossed
with Latin vinum adustum ("burnt [i.e. distilled] wine").
7

The word vodka was attested in English already in the late 18th
century. A description of Russia by Johann Gottlieb Georgi,
published in English in 1780 (presumably, a translation from
German) correctly explained: "Kabak in the Russian language
signifies a public house for the common people to drink vodka (a
sort of brandy) in." William Tooke in 1799 glossed vodka as
"rectified corn-spirits".

Another possible connection of "vodka" with "water" is the name of
the medieval alcoholic beverage aqua vitae (Latin, literally, "water
of life"), which is reflected in Polish "okowita", Ukrainian ,
Belarusian , and Scandinavian akvavit. (Note that whisky
has a similar etymology, from the Irish/Scottish Gaelic uisce
beatha/uisge-beatha.)
People in the area of vodka's probable origin have names for vodka
with roots meaning "to burn": Polish: gorzaa, berbelucha, bimber;
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Ukrainian: , horlka; Belarusian: , harelka;
Lithuanian: degtin; Samogitian: degtn, is also in use, colloquially
and in proverbs
[12]
); Latvian: degvns; Finnish: paloviina. In Russian
during 17th and 18th century or
(goryashchee vino, "burning wine" or "hot wine") was widely used.
Compare to German "Branntwein", Danish; brndevin; Dutch:
brandewijn; Swedish: brnnvin; Norwegian: brennevin (although
the latter terms refer to any strong alcoholic beverage).
Another Slavic archaic term for hard liquors, and its derivatives in
other languages, was "green wine" (Russian: zelyonoye vino,
Lithuanian: alias vynas).
History
According to the Gin and Vodka Association (GVA), the first
documented production of vodka, stemming from the Russian word
'voda' meaning water, was in Russia in the late 9th century. The first
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known vodka distillery was documented almost two hundred years
later at Khylnovsk, Russia, as reported in the Vyatka Chronicle of
1174. Poland lays claim to having distilled vodka even earlier in the
8th century but as this was a distillation of wine it would be more
appropriate to consider it a crude brandy. What could be identified
as vodka first appeared in Poland in the 11th century when they
were called gorzalka, originally used as medicines. Encyclopdia
Britannica writes that vodka originated in Russia during the 14th
century, first brewed Sydnayaska Krueger of the Krueger Family,
which later evolved into the company now known as Smirnoff.

10

For many centuries beverages contained little alcohol. It is estimated
that the maximum amount was about 14% as only this amount is
reachable by means of natural fermentation. The still allowing for
distillation the "burning of wine" was invented in the 8th
century.
Russia
A type of distilled liquor close to the one that would later become
generally designated by the Russian word vodka came to Russia in
the late 14th century. In 1386 the Genoese ambassadors brought the
first aqua vitae ("the water of life") to Moscow and presented it to
Grand Duke Dmitry Donskoy. The liquid that was obtained by
distillation of grape must was thought to be a concentrate and a
"spirit" of wine (spiritus vini in Latin), from where came the name
of this substance in many European languages (like English spirit, or
Russian spirt).
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According to a legend, around 1430 a monk called Isidore from
Chudov Monastery inside the Moscow Kremlin made a recipe of the
first Russian vodka.
[18]
Having a special knowledge and distillation
devices he became an author of the new type of alcoholic beverage
of a new, higher quality. This "bread wine" as it was initially
known, was produced for a long time exclusively in the Grand
Duchy of Moscow and in no other principality of Rus' (this situation
persisted until the era of industrial production). Thus this beverage
was closely associated with Moscow.

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Until the mid-18th century, the drink remained relatively low on
alcohol content, not exceeding 40% by volume. Multiple terms for
the drink are recorded, sometimes reflecting different levels of
quality, alcohol concentration, filtering, and the number of
distillations; most commonly, it was referred to as "burning wine",
"bread wine", or simply "wine". ("Wine" in the modern meaning of
the word - grape wine - had to be imported and was only affordable
for aristocrats and wealthy merchants.) Burning wine was usually
diluted with water to 24% ABV or less before drinking. It was
mostly sold in taverns and was quite expensive. At the same time,
the word vodka was already in use, but it described herbal tinctures
(similar to absinthe), containing up to 75% by volume alcohol, and
made for medicinal purposes.
The first written usage of the word vodka in an official Russian
document in its modern meaning is dated by the decree of Empress
Elizabeth of June 8, 1751, which regulated the ownership of vodka
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distilleries. The taxes on vodka became a key element of
government finances in Tsarist Russia, providing at times up to 40%
of state revenue. By the 1860s, due to the government policy of
promoting consumption of state-manufactured vodka, it became the
drink of choice for many Russians. In 1863, the government
monopoly on vodka production was repealed, causing prices to
plummet and making vodka available even to low-income citizens.
By 1911, vodka comprised 89% of all alcohol consumed in Russia.
This level has fluctuated somewhat during the 20th century, but
remained quite high at all times. The most recent estimates put it at
70% (2001). Today, some popular Russian vodka producers or
brands are (amongst others) Stolichnaya and Russian Standard.
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Today

A large selection of vodkas at an Auchan hypermarket near Nizhny Novgorod
Vodka is now one of the world's most popular spirits. It was rarely
consumed outside Europe before the 1950s. By 1975, vodka sales in
the United States overtook those of bourbon, previously the most
popular hard liquor of the country. In the second half of the 20th
century, vodka owed its popularity in part to its reputation as an
alcoholic beverage that "leaves you breathless", as one ad put it
claiming no smell of liquor remains detectable on the breath, and its
neutral flavor allows it to be mixed into a wide variety of drinks,
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often replacing other liquors (particularly gin) in traditional drinks,
such as the Martini.
According to The Penguin Book of Spirits and Liqueurs, "Its low
level of fusel oils and congeners impurities that flavour spirits
but that can contribute to the after-effects of heavy consumption
led to its being considered among the 'safer' spirits, though not in
terms of its powers of intoxication, which, depending on strength,
may be considerable."
Russian culinary author William Pokhlebkin compiled a history of
the production of vodka in Russia during the late 1970s as part of
the Soviet case in a trade dispute; this was later published as A
History of Vodka. Pokhlebkin claimed that while there was a wealth
of publications about the history of consumption and distribution of
vodka, virtually nothing had been written about vodka production.
Among his assertions were that the word "vodka" was used in
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popular speech in Russia considerably earlier than the middle of the
18th century, but the word did not appear in print until the 1860s.
Production

Vodka bottling machine, Shatskaya Vodka (Shatsk, Russia)
Vodka may be distilled from any starch/sugar-rich plant matter;
most vodka today is produced from grains such as sorghum, corn,
rye or wheat. Among grain vodkas, rye and wheat vodkas are
generally considered superior. Some vodkas are made from
potatoes, molasses, soybeans, grapes, rice, sugar beets and
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sometimes even byproducts of oil refining or wood pulp processing.
In some Central European countries like Poland some vodka is
produced by just fermenting a solution of crystal sugar and yeast. In
the European Union there are talks about the standardization of
vodka, and the Vodka Belt countries insist that only spirits produced
from grains, potato and sugar beet molasses be allowed to be
branded as "vodka", following the traditional methods of
production.
Distilling and filtering

Historic vodka still in Ukraine
18

A common property of vodkas produced in the United States and
Europe is the extensive use of filtration prior to any additional
processing including the addition of flavourants. Filtering is
sometimes done in the still during distillation, as well as afterwards,
where the distilled vodka is filtered through activated charcoal and
other media to absorb trace amounts of substances that alter or
impart off-flavors to the vodka. However, this is not the case in the
traditional vodka producing nations, so many distillers from these
countries prefer to use very accurate distillation but minimal
filtering, thus preserving the unique flavours and characteristics of
their products.
The master distiller is in charge of distilling the vodka and directing
its filtration, which includes the removal of "fore-shots" and "heads"
and the "tails." These components of the distillate contain flavour
compounds such as ethyl acetate and ethyl lactate (heads) as well as
the fusel oils (tails) that impact the usually desired clean taste of
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vodka. Through numerous rounds of distillation, or the use of a
fractioning still, the taste is improved and clarity is enhanced. In
contrast, distillery process for liquors such as whiskey, rum, and
baijiu allow the "heads" and "tails" to remain, giving them their
unique flavours.
Repeated distillation of vodka will make its ethanol level much
higher than is acceptable to most end users, whether legislation
determines strength limits or not. Depending on the distillation
method and the technique of the stillmaster, the final filtered and
distilled vodka may have as much as 95-96% ethanol. As such, most
vodka is diluted with water prior to bottling. This level of
distillation is what truly separates a rye-based vodka (for example)
from a rye whisky; while the whisky is generally only distilled down
to its final alcohol content, vodka is distilled until it is almost totally
pure alcohol and then cut with water to give it its final alcohol
content and unique flavour, depending on the source of the water.
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Flavoring

A set of vodka coolers in chocolate and caramel flavors.
Vodka infusion
Apart from the alcoholic content, vodkas may be classified into two
main groups: clear vodkas and flavored vodkas. From the latter
ones, one can separate bitter tinctures, such as Russian Yubileynaya
(anniversary vodka) and Pertsovka (pepper vodka).
While most vodkas are unflavored, many flavored vodkas have been
produced in traditional vodka-drinking areas, often as home-made
recipes to improve vodka's taste or for medicinal purposes.
21

Flavorings include red pepper, ginger, fruit flavors, vanilla,
chocolate (without sweetener), and cinnamon. In Russia and
Ukraine, vodka flavored with honey and pepper (Pertsovka, in
Russian, Z pertsem, in Ukrainian) is also very popular. Ukrainians
produce a commercial vodka that includes St John's Wort. Poles and
Belarusians add the leaves of the local bison grass to produce
ubrwka (Polish) and Zubrovka (Belarusian) vodka, with slightly
sweet flavor and light amber color. In Poland, a famous vodka
containing honey is called Krupnik. In the United States bacon
vodka has been introduced to critical acclaim.
This tradition of flavoring is also prevalent in the Nordic countries,
where vodka seasoned with herbs, fruits and spices is the
appropriate strong drink for midsummer seasonal festivities. In
Sweden, there are forty-odd common varieties of herb-flavored
vodka (kryddat brnnvin). In Poland and Ukraine there is a separate
category (nalyvka in Ukraine and nalewka in Poland), for vodka-
22

based spirits with fruit, root, flower, or herb extracts, which are
often home-made or produced by small commercial distilleries. Its
alcohol content is between 15 to 75%. In Estonia, vodkas are spiced
with barbaris, blackcurrant, cherry, greenapple, lemon, vanilla and
watermelon flavors.
Polish distilleries make a very pure (95%, 190 proof) rectified spirit
(Polish language: spirytus rektyfikowany). Technically a form of
vodka, it is sold in liquor stores rather than pharmacies. Similarly,
the German market often carries German, Hungarian, Polish, and
Ukrainian-made varieties of vodka of 90 to 95% alcohol content. A
Serbian vodka, Balkan 176, has a 88% alcohol content.
European Union regulation
The recent success of grape-based vodka in the United States has
prompted traditional vodka producers in the Vodka Belt countries of
Poland, Finland, Lithuania, and Sweden to campaign for EU
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legislation that will categorize only spirits made from grain or
potatoes as "vodka." This proposition has provoked heavy criticism
from south European countries, which often distill used mash from
wine-making into spirits; although higher quality mash is usually
distilled into some variety of pomace brandy, lower-quality mash is
better turned into neutral-flavored spirits instead. Any vodka then
not made from either grain or potatoes would have to display the
products used in its production. This regulation was adopted by the
European Parliament on June 19, 2007.
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Health

Spirytus Product of Poland.
Excess consumption of vodka or any other alcoholic beverage can
be lethal by inducing respiratory failure or unguarded inhalation of
vomit by a comatose drunk person. In addition, the effects of
alcohol are responsible for many traumatic injuries such as falls and
vehicle accidents. Consumption of alcohol above 0.1 Blood alcohol
content can cause dehydration, digestive irritation, and other
symptoms associated with alcohol intoxication and hangover, and
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the chronic effects can include liver failure due to cirrhosis, and it is
associated with many GI cancers (particularly oral cavity). In
addition to ethanol, methanol, fusel oils (not present in pure vodka),
and esters can contribute to hangovers.
In some countries black-market vodka or "bathtub" vodka is
widespread because it can be produced easily and avoid taxation.
However, severe poisoning, blindness, or death can occur as a result
of dangerous industrial ethanol substitutes being added by black-
market producers. In March 2007, BBC News UK made a
documentary to find the cause of severe jaundice among imbibers of
a "bathtub" vodka in Russia. The cause was suspected to be an
industrial disinfectant (Extrasept) - 95% ethanol but also containing
a highly toxic chemical - added to the vodka by the illegal traders
because of its high alcohol content and low price. Death toll
estimates list at least 120 dead and more than 1,000 poisoned. The
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death toll is expected to rise due to the chronic nature of the
cirrhosis that is causing the jaundice.
List of vodkas
[[Huzzar Vodka Cork, Ireland Grain
Brand Country Base
42 BELOW New Zealand GE-free Wheat
Absolut Sweden Wheat
Adnams
United
Kingdom
Barley, wheat and oats
Albert Pure Canada Prairie grains
Artic Italy Wheat
Belvedere Poland Rye
Biaa Dama Poland Rye
Black Dot Vodka United States Corn
Blavod
United
Kingdom
Grain
Bols Netherlands

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Brand Country Base
Bong Spirit Netherlands Wheat
Bowman's United States Grain
Chase
United
Kingdom
Potato
Chopin Poland Potato
Cirrus United States Potato
Cooranbong Australia Grapes
Crystal Head Canada Grains
Croc France Grapes
Danzka Denmark Wheat
DOT AU Australia Australian sugar cane
Double Cross Slovakia Wheat
Dovgan Russia

Downunder Australia
Molasses of Australian sugar
cane
Dragon Bleu France Wheat, barley, rye
Dubra United States

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Brand Country Base
Eristoff Georgia

Explorer Sweden Wheat
Finlandia Finland Barley
Firefly United States Muscadines
Flyte Canada Corn Grain
Frs Denmark Wheat
Gdaska Poland

Glen's
United
Kingdom
Sugar Beet
Gold Symphony (
)
Russia

Grey Goose France Wheat
Grey Goose United States Wheat
Han South Korea Barley and Rice
Hangar One United States Wheat
Hooghoudt Netherlands

Hrenovuha () Russia Horseradish
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Brand Country Base
Iceberg Canada Peaches and corn
Isensua
United
Kingdom
Grain
Jean-Marc XO France Wheat
Karlsson's Sweden Potato
Kauffman Russia Wheat
Keglevich Italy Grain
Ketel One Netherlands Wheat
Khortytsa () Ukraine Wheat
Kihnu Mark Estonia

Koskenkorva Finland Barley
Kryshtal Etalon Belarus Wheat and Rye
Kubanskaya () Russia

Latvijas Balzams Latvia

Ledo degtin Lithuania

Level Sweden Wheat
Lokka Turkey Grapes
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Brand Country Base
Lotus United States Wheat
Luksusowa Poland Potato
Magic Spirits Germany Grain
Minskaya Kristall Belarus Grain
Monopolowa Austria Potato
Moskovskaya () Russia

Murree Pakistan

Narodnaya () Russia

Nemiroff () Ukraine Wheat
Nikolai United States Corn
Orloff Brazil

Oso Negro Mexico

Perfect 1864 France Wheat
Pink Netherlands Wheat
Pinky Vodka Sweden

Polar Ice Canada Wheat
Polonaise Poland Grain
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Brand Country Base
Popov United States Grain
Prime-Vodka Ukraine Rye Rusk
Putinka () Russia

Pyatizvyozdnaya () Russia

Rachmaninoff Germany

Rain United States White Corn
Renat Sweden Wheat
Reyka Iceland Grain
Rodnik () Russia

Ruskova () Russia

Russian Standard (
)
Russia

Schramm Canada Organic Potatoes
Serkova Poland Rye
Shustov () Russia Wheat
Siwucha Poland Fruits
SKYY United States Grain
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Brand Country Base
Smirnoff
United
Kingdom
Grain
Snow Queen Kazakhstan Organic wheat
Sobieski Poland Rye
Soyuz-Viktan (-, ,
SV)
Ukraine Wheat
Spendrups Sweden

Square One Organic United States Organic Rye
Starka Poland Rye
Starka () Russia

Stolichnaya () Russia Wheat and Rye
Stolnaya () Russia Wheat
Stumbras Lithuania

SV The Silk Russia

Svedka Sweden Winter wheat
Taaka United States Grain
Three Olives United Grain
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Brand Country Base
Kingdom
Tito's Handmade United States Corn
Ultimat Poland Potato, Wheat and Rye
Ursus Netherlands

UV United States Corn
V44 Slovakia Wheat
Van Gogh Netherlands Wheat, Corn and Barley
Vikingfjord Norway Potato
Villa Lobos Mexico

Viru Valge Estonia Grain
Vladivar
United
Kingdom
Grain
Vodka 14 United States Organic corn and rye
Vodka 7000 United States Oats
Vodkas of Veresk company Russia

Vox Netherlands Wheat
Wyborowa Poland Rye
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Brand Country Base
Xan Azerbaijan Grain
Xellent Swiss Switzerland Rye
Youri Dolgoruki (
)
Russia Wheat
Zaranoff Germany

Zodiac United States Potato
acut Poland Grain
odkowa gorzka Poland 27 herbs and fruits
ubrwka Poland Rye

Its share in international marketing
On a lovely spring day in May 1996, Claes G. Fick (marketing director
of the Absolut Company, the international wing of the Swedish state-
owned Vin & Sprit AB) packs his suitcase for the third time this month
for a business trip to the USA. While packing he thinks of how hard the
Absolut Company must fight to keep and increase its market share for
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Absolut Vodka in the USA and other markets. Until 1994 Absolut
Vodka was distributed by Carillon Importers with the charismatic
Michael Roux in charge.
In 1994 the Absolut Company entered into an agreement with the
somewhat larger Seagram Co. to distribute Absolut Vodka in the USA
and a number of other countries. Seagram is the world's fourth largest
distributor of spirits with world-wide sales of nearly $6 billion. Seagram
distributes (in the USA) such well-known labels as Chivas Regal, oyote
Tequila and Martell Cognac. But it needed a well-known vodka label in
its assortment. Seagram is an international distributor with local
distributors in 1 SO countries.
The shift from Carillon Importers to Seagram Co. has not been without
problems and drama. Michael Roux was very upset when he heard he
had been fired as importer for the American market. As a countermove,
he has taken the Russian competitor Stolichnaya into his assortment,
thus intensifying the 'vodka war'.


36

The world market for vodka
Table 1 shows that eastern European countries amount to 80 per cent of
the world's total vodka sales.
Table 1 Distribution of world vodka sales
Region % of distribution
(IS (the former USSR) 60
East Europe 20
USA 12
Others 8
Total 100
World's total vodka sales 2,250 million liters
Source: Impact International.
The average consumption per capita per year is also very large in eastern
Europe". In Poland the average vodka consumption per capita per year is
about 10 liters, while the average in the CIS is 5 liters. As a comparison,
the average consumption in the USA is 1.3 liters and in the UK 0.6
liters. It should be noted that all these figures are based on registered
sales. In addition to this is home distillery, which takes place in quite a
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large part of Eastern Europe as well as in Sweden and Finland.
The markets of Eastern Europe are distinguished not only by their high
vodka consumption, but also by how much consumers know about
alcoholic beverages and their feeling for quality. However, political
uncertainty and lack of a well-functioning infrastructure in several
eastern European countries make short-term developments
difficult to predict.' For several years Absolut Vodka has been said to
most eastern European countries, and in 1995 the brand was introduced
in Poland as well. Thus, Absolut Vodka is now represented in all the
major vodka markets of the world.
The US market for vodka ,
In the last fifteen years the consumption of alcohol in the USA has
decreased by 20 per cent. There are several reasons for this decrease.
One of the main reasons is the 'health trend' in the USA, which has
caused a greater consciousness of the harmful effects of alcohol. At the
same time there has been a tendency towards greater consciousness of
drinking 'Iess but better'. Thus many people now drink cleaner and more
38

pure alcohol. This has meant that the sale of 'super-premium' (high-
quality) brands has not fallen and has been stable in the last five years.
Nearly all imported brands are in the super-premium segment and are
the main reason that vodka imports have not fallen. Although the vodka
importers' share of the total market is only 12-15 per cent, the gross
margin on imported vodka represents about 40 per cent of the total gross
margin of all vodka sales in the USA. Historically, vodka has not been a
differentiated product, but more and more flavored brands have
gradually been introduced to the market, including Absolut Lemon,
Absolut Pepper and Absolut Kurant. Today it is not without risk
introducing new brands to the US market, as American consumers' tastes
are so volatile. A producer can risk introducing a flavour one year,
which is unpopular the next.
Product segments
The different product segments are as follows:
Platinum. The most expensive category with prices around $20 per
bottle. Labels in this category include Stolichnaya Cristall. This segment
has under 1 per cent of total US vodka consumption.
39

Super-premium. Nearly all labels here are imported. The leading labels
are Swedish Absolut, Russian Stolichnaya and Finnish Finlandia. The
price level is $15-16 per bottle.
This category's share of the total vodka consumption in the USA is about
10 per cent.
Premium. Here we find the world's most popular vodka, the American
Smirnoff, sold for $9-10 a bottle. This group's share is 22 per cent of the
USA's total vodka consumption.
Standard priced. Here the two English labels Gilbey's and Gordon's are
said for $7 a bottle. The category's share is 14 per cent of US vodka
consumption.
Popular priced. This is the largest group. Its share of the total US
vodka consumption is about 54 per cent, and the group consists of a
number of local labels at about $6 a bottle.
Table 2 lists the market shares of the largest producers in the US market.
The three largest imported brands are Absolut (no. 3), Stolichnaya (no.
11) and Finlandia (no. 17).
Absolut's two main competitors can be characterized as follows:
40

Stolichnaya. The pioneer among imported vodka brands, this was the
first vodka to be introduced in the USA, in 1972. Stolichnaya was at this
time a good alternative to the USA-produced vodka brands as it tasted
milder due to a more refined distilling process.
But Stolichnaya's popularity has been dependent on the political climate
between the USA and the former USSR. Today Stolichnaya is
distributed by Absolut Vodka's former importer, Carillon Importers.
Finlandia. This brand was introduced to the USA in 1976. Despite
many marketing campaigns, Finlandia has never been able to get hold of
the vodka market. In the trade, it is estimated that Finlandia has the most
exposed position as all new importers go for the esteemed third place,
which seems to be a realistic goal for a new importing vodka brand.
The distribution system for vodka in the USA
Generally the sale of spirits goes through the distribution system shown
in Figure 2. For American producers, producer supplier and
importer/agent coincide. The retail ('off premise') sale of wine, spirits
and beer takes place through two different distribution systems. In the
'open states'(licence states) the market is free, and sale takes place in
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liquor stores, supermarkets or other grocery stores where the owner has
a licence to sell spirits. In 'control states', spirits can only be sold in
liquor stores owned by the state, similar to the Nordic monopoly system.
The importer/agent usually has only a minor sales force, which
concentrates on selling to and servicing a distributor. An importer/agent
usually cooperates with one distributor in every state (although one
distributor can handle several states), and inlarge states a distributor can
have up to 500 salespeople (geographically divided).
Generally, these salespeople pay for their own car and receive a low
basic wage and commission.
Table 2 Vodka brand shares in the US market, 1990 and 1995
Brand Company % in volume (1990) % in volume (1995)
1. Smirnoff Heublein 16.8 17.9
2. Popov Heublein 9.8 11.1
3. Absolut Seagram 6.9 9.7
4. Gordon's Schenley Ind 5.6 7.0
5. Barton Canadaigua 2.2 3.9
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6. Kamchatka Jim Beam Brands 5.6 3.8
7. Gilbey's Jim Beam Brands 3.3 3.7
8. Wolfschmidt Jim Beam Brands 2.6 3.7
9. Skol UD Glenmore 2.2 2.7
10. McCormick McCormick Distilling 2.0 3.5
11. Stolichnaya Carillon 3.0 2.8
12. Fleischmann's UD Glenmore 2.2 2.7
13. Aristocrat Heaven Hill 1.3 2.2
14. Nikoiai Sazerac 1.4 2.0
15. Taaka Sazerac 1.5 1.7
16. Relska Heublein 1.6 1.4
17. Finlandia Heublein 0.7 1.4
18. Crystal Palace Canadaigua 1.0 1.3
19. Crown Russe Sazerac/Southland 1.0 1.2
20. Majorska Star Uquor Imports 1.0 0.9
Total top twenty 71.7 84.6
43

Others 28.3 15.4
Total 100 100
Total sales volume (1995): 280 million liters.
Source: Jobson's Handbook Advance/Euromonitor/lmpact Databank,
Figure 2 The
general distribution
system for spirits in
the USA
The salesperson in the area concerned visits both the institutional market
and the retail market, often once a week, taking orders and in xceptional
cases delivering goods and collecting payment.
Having read the above report, Claes G. Fick acknowledges that it is
necessary to get some external input on some essential strategic
questions. When Claes lands in New York he has written down the
following questions which he asks you to answer.