Organic Smirnoff Vodka is the most consumed spirit globally with its market share accounting to 22.5%.In the year 2008, there was a tremendous increase in its consumption as the total sales added up to 512.7 cases while the trajectory was phenomenon.
This growth has been persistent for a long time since over the course of the past 20 years, organic Smirnoff vodka has added a sale of 246.7 million cases equal to CAGR of 3.5%.In the year 2007, Diageo was the global leader in the spirits industry with their sales adding up to $14,968 million.
The impressive growth in market share held by organic Smirnoff vodka over other similar spirits can be attributed to varied reasons. One, many individuals are now watching what they consume due to the side effects many of the drinks are associated with. Organic Smirnoff vodka has been known to have fewer effects on consumers’ health and the environment at large.
Since organic Smirnoff vodka is a non alcoholic drink its demand has tremendously increased. Secondly, the labeling of the category has also influenced the sale of this brand. Research has shown that by the year 2006, the consumption of private labeled spirit in the United State of America had rise to a level slightly beyond the $3 billion mark with the further increase of more than 3% anticipated by the year 2011.
This increase is projected to be higher compared t the sale of other spirits in the same line with organic Smirnoff vodka. The introduction of more organic Smirnoff vodka flavors and pre mixed drinks in to the market has attracted more consumers hence, increasing the average sale.
Other products in the same line including other Vodka brands, Grey Goose, Ciroc, Absolute Vodka, sky and all alcoholic beverages are giving the global vodka a tight competition for the already flooded market. Although the competition is very high, organic Smirnoff vodka makes more sales due to its high branding and recognition. The product is also packaged in distinct bottles of varied quantities at pocket friendly prices.
This has attracted its consumption by people of different works of life hence, increasing its sales. The availability of variety of organic Smirnoff vodka flavors and pre mixed drinks known to be low in calorie content and organic drinks has attracted more consumers. The sale potential of organic Smirnoff vodka has also been enhanced by international brands while ads on vodka have reinforced the brand name and identity.
Many consumers have continued consuming organic Smirnoff vodka because of its palatable taste and wonderful warm feeling not felt with other vodka brands. In fact, some consumers argue that, other vodka brands leave a burning sensation in the digestive tract. During the production process, organic Smirnoff vodka is passed through a series of distillations leading to a brand with high percentage in approval.
On opportunities, the market for pre mixed drinks has developed rapidly over the last few years. In addition, there have been changes in the social patterns, lifestyle, population profile and awareness of importance of organic products.
There are threats that are anticipated. First, there are continued fears about the social impact of alcohol consumption and abuse. Volatility in raw materials prices is also expected. Other threats are change in regulatory environment and loss of interest in organic products. For sure, “Smirnoff leaves one breathless.”