Vodka Market in US and Canada
This consumer research report explores the nature of the vodka
market in North America. It examines current conditions, trends,
marketing tactics, and environmental aspects of the market.
Skills: research, analysis of research findings, critical thinking,
writing, proofreading and editing
Consumer Research Case: The
Vodka Market in the United States
and Canada
Sara Kelly
Christian Mazzilli
Anastasiia Reznichenko
Sarah Rodrigues
1
Vodka Market in US and Canada
Industry Overview
Market Size
Vodka is the most popular liquor in the United States, accounting for over 20% of bottles
of spirits sold1, and 32% of spirits by volume.2 In Canada, vodka ranked first in market
share, accounting for 27.9% of the Canadian spirits market in 2012.3
In 2012, 65.18 million cases were sold in the US, an increase of 6.1% from the previous
year. Sales in dollars was $5.47 billion, an increase of 5.1% from the previous year.1
Measured by volume, shipments of all varieties of vodka have increased, at a pace
greater than the spirits industry in general (Fig. 1). Measured by revenue, all vodka has
increased, at a pace greater than the spirits industry in general. Value-tier vodka
increased from $1.06 million to $1.08 million (+1.4%); the rest are measured in billions (Fig
2).
Revenue by tier,
excluding Value, 2011
to 20121
Cases sold by tier, 2011 to 20121
30.00
+1.7%
2011 sales
(millions)
25.00
+5.7%
20.00
$1.5
10.00
5.00
0.00
Premium
High-end
premium
+4.0
+9.5%
$0.5
+10%
Value
+5.4%
$1.0
+3.5%
15.00
$2.0
Super
premium
Figure 1: Cases sold by tier
$-
Premium High-end Super
premium premium
2011 Revenue (billions)
2012 Revenue (billions)
Figure 2: Revenue by tier
Market Segments
While the total market for vodka drinkers in North America could consist of everyone
over the legal drinking age, it would be ineffective to market that broadly.
Education
Vodka consumers can be segmented into those with university education and those
without. In Canada, those with at least some university education make up 47.2% of
vodka consumers, and in all categories are more likely to drink vodka than the average
index.
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Vodka Market in US and Canada
28.7% of vodka consumers are high school graduates with no university education. If
you include those with trade certificates/diplomas, they make up 41% of vodka
consumers, and in both categories consumers are more likely to drink vodka than the
average index.
The final category, No Certificate or Diploma, is problematic. An unknown number of
the people in this category are not likely of legal drinking age, which explains low
penetration and index. This is not a segment: it is small, unreachable (due to legal
drinking age), and not profitable due to low consumption.
Education4
Total
Secondary/High School Graduate
University/Other Non-University Cert.
Bachelors Degree
Trade Certificate/Diploma
No Certificate Or Diploma
Post Graduate+ Degree
7693
6489
4315
2956
6503
2185
Vodka
Market
Market
Consumer Composition Penetration
2066
28.7%
26.9%
1723
23.9%
26.6%
1120
15.6%
25.9%
885
12.3%
29.9%
845
11.7%
13.0%
556
7.7%
25.5%
Index
113
111
109
125
54
107
Income
The largest market segment of vodka consumers by income is people who make less
than $20 000, with $50-$75 000 earners as the second-largest bracket. Income is an
important segmentation because vodka is broken into tiers; the low-income earners
should receive marketing on value-tier vodka, where higher-income earners should
receive premium-tier vodka marketing.
Personal Income4 Total Vodka Consumer Market Composition Market Penetration Index
<$20M
11821
2368
32.9%
20.0%
84
$50M-$74.9M
4305
1266
17.6%
29.4%
123
$35M-$49.9M
4531
1217
16.9%
26.9%
112
$75M +
3683
1019
14.2%
27.7%
116
$25M-$34.9M
3646
793
11.0%
21.7%
91
$20M-$24.9M
2156
534
7.4%
24.8%
104
Age
Age segmentation is important, particularly when determining marketing and
distribution channels. As Baby Boomers make up the highest market composition, they
are one segment (Baby Boomers includes most of the 45-54 year-olds, some of the 5564 year-olds, and a small number of 65+ year-olds).
Younger people (34 an under) make up another segment, as they are a large group
with similar characteristics. Though 18-24 is a small group in terms of composition, it
3
Vodka Market in US and Canada
should be included in the segment because of the extremely high index and market
penetration. This segment should start at the legal drinking age (18, 19, or 21) to age 34.
Total Vodka Consumer Market Composition Market Penetration Index
Age4
Baby Boomers
(born in 1945-1965) 10149
2240
31.1%
22.1%
92
25-34 years
4789
1473
20.5%
30.8%
129
45-54 years
5268
1264
17.6%
24.0%
100
35-44 years
4696
1185
16.5%
25.2%
106
18-24 years
3333
1181
16.4%
35.4%
148
55-64 years
4604
993
13.8%
21.6%
90
65+
5004
865
12.0%
17.3%
72
Pricing Trends
The price of vodka is rising at a rate faster than inflation.5 In just 8 months, the US
average price rose 4.7%:
Food and Unit
US city
US city average,
average, July
March
20127
Increase
Increase
($)
(%)
$0.683
4.707%
20116
Vodka, all types, all sizes,
$14.511
$15.204
any origin, per 1 litre (33.8
oz)
Product Trends
As discussed above, sales of vodka are increasing. There are some specific trends in
vodka sales in Canada and the US:
Flavoured Vodka
In Canada, flavoured vodka sales grew almost 30 percent between 2012 and 2013.3
The LCBO reported an increase of 11.5% in this category in summer 2013, with cherry
being a particular favourite.8
In the US, flavoured vodka experienced a 23.3% gain in total US vodka volume in 2011;
flavoured vodka accounted for more than 25% of all US vodka sales in that period. It is
the fastest-growing trend in the spirits industry. 17 flavoured vodka products were
released in 2011, and 12 between January and September 2012. Pinnacle‟s Whipped
Cream vodka was the most popular; it grew 324.5% in 2011.9
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Vodka Market in US and Canada
Light Vodka
Another trend in vodka is light or low calorie vodka, such as Smirnoff Sorbet Light (which
is also flavoured) and Voli Vodka.8 Low calorie and light vodkas are becoming popular
as a “healthier” alternative to traditional alcohol.10
Innovative Packaging
Bold and unique packaging is becoming increasingly important for differentiating
products, especially in the vodka industry. Companies that are taking advantage of this
trend, such as Svedka and Pinnacle, are gaining market share. New products are
attracting more attention and older brands are encouraged to innovate and
redesign.11
Sales Projections
Vodka will continue to grow and extend its leading market share in North America. It is
expected to increase its share of the North American spirits market from 33.7% to 37% by
2017.12
Forecast for Canada13

By the end of 2014, the vodka category will be worth $1 067.4 million (CAD)
o

Expected compound annual growth rate of 2.9% from 2009-2014
By the end of 2014, the vodka market will total 41.9 million litres
o
Expected compound annual growth rate of 2.7% from 2009-2014
Forecast for North America14

By the end of 2014, the vodka category will be worth $14 835.2 million (USD)
o

Expected compound annual growth rate of 5% from 2009-2014
By the end of 2014, the vodka market will total 656.5 million litres
o
Expected compound annual growth rate of 4.6% from 2009-2014
Distribution
Vodka goes from producer to consumer via the importer, wholesaler, and retailer. The
consumer makes the final purchase either at restaurants and bars, or at liquor stores.
Arrangements differ from market to market. In Ontario, for example, the LCBO controls
distribution of liquor, including what brands are available and at what locations. In
other provinces and the United States, bars, restaurants, and stores purchase their own
stock, or rely on distribution agencies to handle stock.15
Market Profitability
Profitability varies from market to market. It can be costly to get restaurants, bars, and
liquor control boards to carry particular brands, particularly with the strict regulations on
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Vodka Market in US and Canada
advertising in some markets.16 There is a lot of competition in the vodka market, and
value-tier vodkas are only profitable through high volume sales.17
However, once a brand is recognizable and its sales are high, vodka can be extremely
profitable. Unlike wine or aged spirits, vodka is ready to consume immediately after
distillation, so there is no high capital investment. Premium and super-premium vodkas
in particular have a large profit margin.18
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Vodka Market in US and Canada
Competitive Environment
Nature of Competition
The alcohol industry is capitalist, as competition is
vast and barriers to entry are fairly low. There are
infinite choices available in beer, wine, and spirits.
Within those three sections, the choices multiply;
this prohibits one brand or one form of alcohol to
be the only product sold.
In terms of how alcohol is sold, however, the
industry moves toward monopolistic in some
markets. In Canada you can only buy alcohol from designated liquor control boards
(LCBO in Ontario), and must be the minimum government-mandated drinking age.
In the United States, alcohol is distributed in more channels. Grocery stores,
convenience stores and many others sell alcohol, however people purchasing must be
21.
Current Competitors
In simplest terms, any beverage can be viewed as a competitor to vodka. For the
purposes of this study, competitors will focus on alcohol (beer, wine, and spirits).
In Canada, beer has been the leading category of alcoholic sales from 2000-2011.
However, wine has gained significant market share, overtaking spirits by 2011.19
Key Competitors
Vodka is a very diverse market in itself, with many competing brands. There are clear
consumer preferences for these brands, however.
Based on data from the Print Measurment Bureau (Appendix B), Smirnoff Vodka is the
brand that consumers buy most often in Canada.20 Smirnoff is a value-priced vodka.
Many other brands – such as Absolut, Skyy, Polar Ice, and Iceberg – also represent
value pricing. Across Canada the individual prices per bottle differ based on provincial
laws, but are all similarly priced.
Other brands, such as Grey Goose, are premium-priced vodka. Based on prices across
the provinces, Grey Goose is double the price of previously mentioned value-priced
vodka.
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Vodka Market in US and Canada
Brand
Price/750mL21
Brand
Price/750mL21
Smirnoff
$25.45 Skyy Vodka
$26.45
Absolut
$26.95 Skinnygirl Bare Naked
$29.10
Vodka
Grey Goose
$48.95 Iceberg Vodka
Polar Ice
$24.45
$25.45
Despite the price, Grey Goose is one of the top five vodkas. Research indicates that,
during 2011, consumers took to premium-priced vodkas due to the recession, rather
than going out to bars and restaurants. Grey Goose advertisements focus on a luxurious
lifestyle that is assumed to be achieved through consuming their product (image, left).
Smirnoff, which uses the value pricing approach, uses simplistic advertising to sell their
product. Advertisements such as the one below (image, right) show that by consuming
Smirnoff, your life will become stress free and simple. Advertising for vodka is rarely seen
on television and generally focuses on magazine advertisements that can directly
impact their target markets.
These competing yet different brands make it clear that segmentation is key in the
vodka market. Premium-priced vodka has a different segment than value-priced
vodka, and marketing communications, product, and packaging all need to reflect
that segment‟s preferences.
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Vodka Market in US and Canada
Relevant Partnerships/Alliances/Distributors
In Canada, vodka is distributed in all 13 provinces and territories; each province and
territory has different regulations regarding sales and partnerships.22
In Ontario, liquor companies are partnered with the LCBO, Ontario‟s sole liquor
distributor. The LCBO, run by the government on Ontario, focuses on social responsibility.
To prevent consumers from improper consumption – e.g. drinking and driving, overconsumption – the LCBO created a series of advertisements which address the
„elephant in the room.‟ By partnering with iTunes, they were able to create Speak Up!,
an app to assist party hosts to plan safe parties and prevent drinking and driving.23
In Alberta, the AGLC created posters and brochures to promote responsible use of
alcoholic products. One campaign, „Cage Your Rage,‟ encourages responsible
drinking by displaying someone who got into a situation way over their head.24
Many liquor companies also partner with not-for-profit organizations that combat
problems of substance abuse and impaired driving.25
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Vodka Market in US and Canada
Recent News
In recent months, the LCBO of Ontario has been promoting Ontario Wines, which could
explain the increase in market share of wine 2000-2011. Kathleen Wynne, a Toronto
government official, wants to change liquor laws to boost Ontario Wines. Most Ontario
Wines are sold privately through the individual businesses rather than through the LCBO.
Wynne wants to create a new liquor store that is solely dedicated to the sale of wine,
which would allow small Ontario wine companies to reach the mass market.26
In other news, the LCBO has discussed opening ten express stores across Ontario in
super markets. Based on research by the LCBO, consumers want convenience. Having
alcohol for sale in grocery stores is a way to address the convenience issue. However,
these express stores will not have the full selection that traditional LCBO stores currently
have. Companies that are ranked high in customer sales would see their products on
the shelves of these express stores, while companies that rank in the middle of
consumer sales would miss out on this opportunity.27
Relevant Financial Information
In 2011, the United States and Canada were in an economic downturn. In most cases,
consumers limited their spending to the necessities. However, in 2011, sales of liquor
increased 4%. Consumers were switching to super premium brands, such as Grey
Goose. The sale of super premium vodkas rose 15.9%.28 During a recession, consumers
purchase premium brands in order to have the feeling of luxury they would normally get
from a bar or restaurant cocktail, with a lower price tag.
A study done by the Economist (Appendix C) shows consumer trends based on
individual countries and specific types of liquor. In the five spirits examined (vodka, rum,
Scotch whisky, gin and tequila), the United States ranked in the top 2 for each
category. The study related each spirit consumed to the number of people in a given
country. In the vodka category, 1.9 litres of vodka are consumed by every person in the
US each year. This number includes men, women (including pregnant women), and
children, so actual consumption per alcohol consumer is significantly higher.29
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Vodka Market in US and Canada
Consumer Behaviour
Vodka consumers are adventurous, and are very willing to try new flavours and
innovations.30 Flavoured vodka sales are increasing each year, and more and more
flavours are being added. Vodka producers are making large investments in marketing
and innovation to draw these adventurous consumers to their brands.31
Somewhat conversely, vodka consumers are also fairly brand loyal. In a study of the
highest brand loyalty, Ketel One ranked at #17, and Grey Goose at #15. Two other
vodka brands appeared in the top 50.32
These two behaviours, when combined, suggest that vodka brands should be
extremely innovative, particularly with flavoured vodkas, in order to keep brand-loyal
consumers. Otherwise, consumers may shift to brands that offer more interesting or
unique flavours. There is strong competition for the attention of the consumer in
alcoholic drinks, and it is hard to maintain that attention.
Vodka consumers are also shifting from “on-premise” consumption (that is, in
restaurants and bars) to “off-premise” or in-home consumption, in order to save money.
These consumers also divide into two distinct segments: one segment is saving further
by purchasing value-brand vodka, the other segment is compensating for the loss of
on-premise luxury by purchasing premium vodka.33
This shift in consumption behaviour indicates that vodka brands should redistribute their
marketing funds from on-premise marketing (business-to-business) to off-premise (direct
to consumer).
Consumers are becoming more health-conscious, and the market for low-carb, lowcalorie, and light vodkas is increasingly accordingly.34 Innovation in this category can
also help brands establish themselves in a highly-competitive market. For example, the
Skinnygirl brand grew 388% in volume from 2010-2011.35
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Vodka Market in US and Canada
Marketing Tactics
Pure unflavoured vodka comes in a variety of brands and bottle sizes (from 1.5 oz
testers to 1.75L bottles). It ranges in price from value to super premium; pricing varies by
province/state depending on taxation levels. Many brands also make flavoured
vodkas, in everything from lemon and orange to bacon and root beer.
The marketing and advertising of alcohol in both Canada and the US is strictly
regulated by federal and provincial/state legislation. This limits what vodka brands can
do to increase brand awareness and sales. For example, marketing to youth, promoting
underage consumption, promoting over-consumption, or associate alcohol with
social/personal achievement.36 Some networks ban alcohol advertising altogether, and
at the very least it is limited to certain times of day.
Traditional alcohol advertising tends to use sexual appeals, humour, music, and popular
culture icons. Alcohol advertisers are often criticized for these tactics, as opponents
claim these things appeal to underage drinkers especially. Feminist criticism argues that
alcohol ads hyper-sexualize women and create unrealistic expectations in young
audiences.34
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Vodka Market in US and Canada
Vodka advertising largely focuses on qualitative or abstract aspects of a brand – such
as smooth, superior, or refreshing – as there are very few discernible differences
between brands of vodka.
To get around legislation limiting traditional advertising, vodka brands are turning to
non-traditional channels, such as social media, mobile marketing, and promotional
events. A 2012 event tour by Smirnoff entitled “Midnight Circus” involved guests wearing
digital bracelets and having their movements tracked. The event included 2 400 guests,
and inspired 4 000 Facebook likes and reached 800 000 friends.35
Smirnoff‟s Facebook page has over 10 000 000 likes,
Absolut has over 4 000 000, and both have huge
Twitter followings as well. This is a huge audience for
advertising, with little regulation. Neither Facebook
nor Twitter requires age verification to like/follow
these companies.
Mobile technology is also being utilized by the major
vodka brands to more actively engage their
audiences. For example, Absolut Vodka has an app
that allows users to search for cocktails and drink
recipes, with step-by-step mixology instructions.35
13
Vodka Market in US and Canada
Many vodka brands are advertising responsible consumption, largely to curb criticism of
the alcohol industry‟s culpability in impaired driving and substance abuse problems.
Promotional events and sponsorship have always been popular marketing tactics for
alcohol companies. SKYY Vodka was recently named the official sponsor of the
Treasure Island Music Festival in San Francisco.37 This festival is very popular, and there is
no minimum age to attend; instead, alcohol is sold in specific areas.38
For new brands or flavours entering the market, it is imperative to attract the most
attention possible; this means that new brands require large marketing outlay at the
beginning to cut through the competitive clutter. Large promotional events, such as
dance parties and competitions, combined with extensive social media campaigns,
will attract the most attention.35
As vodka users are willing to try new flavours, promotional tastings inside liquor stores will
help to stimulate initial sales.
14
Vodka Market in US and Canada
Environmental Factors
Legal Considerations
Alcohol is highly regulated in both Canada and the US. Its marketing, sale, and
consumption are all rigorously legislated.40
The major concerns surrounding alcohol involve the exposure of underage youth to the
advertising, the glorification of alcohol consumption in advertising, the impact of the
legal drinking age, the availability and distribution of alcohol, and the problem of overconsumption.
Alcohol advertising and marketing is very limited. In Canada, legislation prohibits any
form of alcohol advertising that:

encourages the general consumption of alcohol,

promotes the irresponsible or illegal use of alcohol,

associates alcohol with personal or social achievement,

is directed to those under the legal drinking age, and/or

includes alcohol in the operation of a motor vehicle, or any other activity that
requires skill or care.38
In the US, the legislation is similar; alcohol cannot be advertised on most television
networks at all, and alcohol companies cannot advertise at events where the
audience is likely to be less than 70% over the legal drinking age.39
To combat these concerns, alcohol companies are going beyond the minimum
required legislation – often, the cursory “Please Drink Responsibly” at the end of an ad –
in order to promote safe and responsible consumption. For example, Diageo, the
parent company of Ketel One, Smirnoff, and Ciroc vodkas, has an entire website,
http://www.drinkiq.com, devoted to responsible drinking and alcohol education. Other
companies sponsor safe-ride programs and run advertising that discourages impaired
driving and alcohol abuse. The liquor control boards in Canada donate portions of their
proceeds to organizations like MADD (Mothers Against Drunk Driving) as well.41
Occasionally new legislation regarding alcohol is proposed. For example, in 2010 in
Ontario, young drivers were prohibited by law from having any alcohol in their system
under the age of 21.42
Alcohol companies occasionally oppose stricter legislation through government
lobbying if they feel it will have a negative impact on their business. They must tread
15
Vodka Market in US and Canada
cautiously, however, so as not to appear to be encouraging underage drinking, overconsumption, or alcohol dependence.
Economic Conditions
As previously discussed, the recent recession had an impact on vodka sales. Alcohol
companies must remain aware of economic conditions to ensure that funds are being
distributed appropriately. For example, more money should be spent marketing offpremise/in-home consumption during a recession; in favourable economic conditions
more money can be spent marketing on-premise consumption to restaurants and bars.
Recessions also affect the varieties of alcohol being purchased. Vodka purchases in
particular split between value-priced and premium-tier vodkas; segmented and
differentiated marketing will be the most effective in these conditions.
Social Trends
Corporate and social responsibility remains an important trend in the alcohol industry.
Beyond the legal responsibilities, above, companies are expected to promote a certain
set of values and improve the planet.
The objectification of women in alcohol
advertising is a fairly standard practice – as
the old adage goes, sex sells. However,
inspired by the movement against hypersexualization and objectification of
women, some ads are being heavily
criticized. For example, this advertisement
for Belvedere Vodka immediately
provoked backlash from its social media
audience. The ad had to be removed, and
Belvedere has issued many apologies to
date for the ad, which critics say appears
to make light of sexual assault.43
16
Vodka Market in US and Canada
Recommendations
Product Offering
Brands that are not currently considering a line of flavoured vodkas or light/lowcalorie/low-carb vodkas should do so, as these are the biggest trends in the vodka
industry today.
Brands that find their sales are stagnant in this growing industry may want to consider a
packaging redesign in order to revitalize the product or target it to a particular market.
Packaging designs that have not been updated may seem „stale‟ to consumers
looking for an exciting vodka to try; they risk being so familiar that they become
invisible.
Marketing and Advertising
Marketing should be segmented, as described above, and any advertising should be
targeted at those segments to ensure efficiency. Advertising must, of course, conform
to all necessary legislation, but should also promote the company‟s social responsibility
efforts.
For new flavoured vodkas, promotional tastings in liquor stores are recommended, as
consumers are more willing to make the purchase once they know they like the
product. Alternatively, new flavours should be available in inexpensive sample sizes (the
1.5oz tasters) for consumers to try.
New brands of vodka may have difficulty entering this very competitive market. In order
to be successful, new brands must generate a lot of buzz around their product, with
event sponsorship, promotions, and/or celebrity endorsements. Innovative packaging
may also attract consumer interest.
Brands may need to advertise more. Where liquor distribution is monopolistic (such as
under the LCBO), customers cannot simply choose any vodka; they can only choose
what the retailer carries. It is important for brands to lobby the retailers to carry their
brand, but also to encourage customers to ask for it in those retailers. In the case of the
LCBO, the bulk of their advertising is for Ontario wines, so vodka brands must advertise
aggressively to keep their customers loyal.
Social Responsibility
Companies must continue to promote responsible drinking, discourage impaired driving
and overconsumption, and fund education particularly for young people. The greater
17
Vodka Market in US and Canada
a company is seen to be socially responsible, the greater its brand reputation and
loyalty.
Success Factors
Market leaders in the vodka industry have several traits in common:
1. Product differentiation: The four market leaders in Canada – Smirnoff, Absolut,
Grey Goose, and Polar Ice – all offer at least two different flavours.
2. Brand loyalty: The leaders in the vodka market also have loyal customers. This
loyalty is inspired by consistency of quality, but also innovation. Brands maintain
their loyalty by effectively targeting their advertising, researching their market,
and innovating both in terms of product and packaging.
3. Social responsibility: The vodka brands with the highest revenues are also the
ones giving the most money to not-for-profits, running the most “drink
responsibly” ads, and funding the most education.
18
Vodka Market in US and Canada
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Vodka Market in US and Canada
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finalizaing deal with Dragons” (2013).
http://business.financialpost.com/2013/01/21/high-competition-low-marginskeeps-stoked-vodka-from-finalizing-deal-with-dragons/ (Google search for
„vodka profitability Canada‟)
17. Financial Times: “Vodka market nears bubble territory” (2012).
http://www.ft.com/cms/s/0/9411ec74-9512-11e1-ad3800144feab49a.html#axzz2hikcTmdO (Google search for „vodka profitability‟)
18. Forbes: “Vodka Rocks!” (2004).
www.forbes.com/2004/07/28/cx_np_0728feat.html (Google search for „vodka
profitability‟)
Section II: Competitive Environment
19. StatsCan: “Control and sale of alcoholic beverages” (2011).
http://www.statcan.gc.ca/daily-quotidien/120326/dq120326a-eng.htm (Google
search for „alcohol market share in Canada‟)
20. Print Measurement Bureau: Vodka, Any Consumption, sorted by Brand (2013).
(See Appendix B)
21. Pricing obtained from the LCBO website, www.lcbo.ca.
22. Members of the Canadian Association of Liquor Jurisdictions (2013).
http://www.calj.org/CALJMembers.aspx (Google search for „Canadian alcohol
distributors‟)
23. LCBO: Advertising and Social Responsibility (2013).
http://www.lcbo.com/socialresponsibility/advertising.shtml (LCBO website ->
advertising)
24. ALGC: Responsible Liquor Service (2013).
http://www.aglc.ca/responsibleliquorservice/postersandbrochures.asp (CALJ
website (#22) -> ALGC -> Being Responsible -> Responsible Liquor Service)
20
Vodka Market in US and Canada
25. The Century Council: Members http://www.centurycouncil.org/members
(Google search for „impaired driving vodka donation‟)
26. Toronto Star: “Kathleen Wynne hints at liberalizing booze laws to boost Ontario
wine industry” (2013).
http://www.thestar.com/news/queenspark/2013/09/25/kathleen_wynne_hints_at
_liberalizing_booze_laws_to_boost_ontarios_wine_industry.html (search Toronto
Star website for „alcohol sales‟)
27. Toronto Star: “Ontario liquor sales: LCBO prepare for big changes” (2013).
http://www.thestar.com/news/queenspark/2013/09/18/ontario_liquor_sales_lcbo
_preparing_for_big_changes.html (from previous entry, Google search for
„Ontario LBCO in grocery stores‟)
28. Time: “Cheers! Increase in Liquor Sales Bodes Well for Economic Recovery”
(2012). http://business.time.com/2012/01/31/cheers-increase-in-liquor-salesbodes-well-for-economic-recovery/ (Google search for „hard liquor sales charts‟)
29. Economist: “High spirits” (2013).
http://www.economist.com/blogs/graphicdetail/2013/06/daily-chart-9 (Google
search or „hard liquor sales charts) (See Appendix C)
Section III: Consumer Behaviour
30. Euromonitor: “Spirits in the US” (2013). http://www.euromonitor.com/spirits-in-theus/report (Google search for „spirits consumer trends‟)
31. Euromonitor: “Spirits in Canada” (2013). http://www.euromonitor.com/spirits-incanada/report (Google search for „spirits consumer trends Canada‟)
32. Business Insider: “Top 20 Brands with the Most Loyal Customers” (2011).
http://www.businessinsider.com/brand-loyalty-customers-2011-9# (Google
search for „vodka brand loyalty‟)
33. StateWays: “A clear winner: Vodka, the largest spirits category in the U.S.,
continues to increase its market share, and, despite the recession, shows few
signs of slowing down” (2010).
http://www.thefreelibrary.com/A+clear+winner%3A+Vodka,+the+largest+spirits+
category+in+the+U.S.,...-a0228910322 (Google search for „vodka brand loyalty‟)
34. Novak, J.A. “Alcohol Promotion and the Marketing Industry: Trends, Tactics, and
Public Health”
http://www.apolnet.ca/resources/pubs/respapers/AlcoholMarketingPaperSept3
0.pdf (Google search for „spirits promotion advertising‟)
35. “Drinking to the Future: Trends in the Spirit Industry” (2013).
http://www.ipsos.com/sites/ipsos.com/files/Drinking-to-the-Future-Trends-in-theSpirits-Industry.pdf (Google search for „spirits industry trends‟)
Section IV: Marketing Trends
21
Vodka Market in US and Canada
36. ASCA Alcoholic Beverage Advertising Clearance Guide (2013).
http://www.adstandards.com/en/clearance/alcoholicBeverages/ASCAlcoholic
BeverageAdvertisingClearanceGuide.pdf (Google search for „alcohol
advertising legislation‟)
37. Treasure Island Music Festival: http://www.treasureislandfestival.com/2013/
Section V: Environmental Factors
38. ASC Alcoholic Beverage Advertising Clearance Guide:
http://www.adstandards.com/en/clearance/alcoholicBeverages/ASCAlcoholic
BeverageAdvertisingClearanceGuide.pdf (Google search for „Canada alcohol
advertising regulations‟)
39. Wikipedia: Alcohol Advertising.
http://en.wikipedia.org/wiki/Alcohol_advertising#United_States
40. Alcohol Regulations in Canada:
http://www.ccsa.ca/Eng/Topics/Legislation/LegislationAndRegulations/Pages/d
efault.aspx (Google search for „Canada alcohol regulations).
41. MADD Canada: Sponsor Profiles (2013).
http://madd.ca/madd2/en/giving/giving_sponsors_and_donors_corporate_spon
sor_profiles.html (Google search for „MADD sponsors‟)
42. Toronto Star: “Zero-alcohol limit for drivers 21 and under” (2010).
http://www.thestar.com/news/ontario/2010/07/26/zeroalcohol_limit_for_drivers_2
1_and_under.html
43. HLNTV.com: “Belvedere sorry for decidedly un-smooth ad” (2012).
http://www.hlntv.com/article/2012/03/26/belvedere-vodka-advertisementapology (Google search for „vodka ad‟)
22
Vodka Market in US and Canada
Appendix A: PMB Vodka Demographics
01 PMB 2013 Spring - 2 YR DATABASE (DE)
Kantar Media 2013
Total
'(000)
Vodka Personally Drank In Past 6 Mos.: Yes
'(000)
% vert
% horz
index
Total
Canada M&F age 12+
30142
7195
100%
23.9%
100
Gender:
Male
Female
14872
15270
3443
3752
47.8%
52.2%
23.1%
24.6%
97
103
Age:
12-17 years
18-24 years
25-34 years
35-44 years
45-54 years
55-64 years
65+
Baby Boomers (born in 1945-1965)
2447
3333
4789
4696
5268
4604
5004
10149
234
1181
1473
1185
1264
993
865
2240
3.3%
16.4%
20.5%
16.5%
17.6%
13.8%
12.0%
31.1%
9.6%
35.4%
30.8%
25.2%
24.0%
21.6%
17.3%
22.1%
40
148
129
106
100
90
72
92
Education:
No Certificate Or Diploma
Secondary/High School Graduate
Trade Certificate/Diploma
University/Other Non-University Cert.
Bachelors Degree
Post Graduate+ Degree
6503
7693
2956
6489
4315
2185
845
2066
885
1723
1120
556
11.7%
28.7%
12.3%
23.9%
15.6%
7.7%
13.0%
26.9%
29.9%
26.6%
25.9%
25.5%
54
113
125
111
109
107
Household Income:
$100M +
$75M-$99.9M
$50M-$74.9M
$35M-$49.9M
$25M-$34.9M
$20M-$24.9M
<$20M
9229
4696
6036
4083
2348
1100
2650
2592
1161
1313
877
479
227
546
36.0%
16.1%
18.2%
12.2%
6.7%
3.2%
7.6%
28.1%
24.7%
21.7%
21.5%
20.4%
20.7%
20.6%
118
104
91
90
85
87
86
23
Vodka Market in US and Canada
Personal Income:
$75M +
$50M-$74.9M
$35M-$49.9M
$25M-$34.9M
$20M-$24.9M
<$20M
3683
4305
4531
3646
2156
11821
1019
1266
1217
793
534
2368
14.2%
17.6%
16.9%
11.0%
7.4%
32.9%
27.7%
29.4%
26.9%
21.7%
24.8%
20.0%
116
123
112
91
104
84
HH Size:
1
2
3+
3701
9147
17293
762
2327
4106
10.6%
32.3%
57.1%
20.6%
25.4%
23.7%
86
107
99
Hhld. Structure:
Couple With Children Living at Home
Couple - No Children Living At Home
Adult With Children Living At Home
Adult Living Alone
Adult Sharing Accommodation
Empty Nesters
Other
13837
7319
2443
3688
2351
3706
504
3129
1806
597
761
790
831
113
43.5%
25.1%
8.3%
10.6%
11.0%
11.5%
1.6%
22.6%
24.7%
24.4%
20.6%
33.6%
22.4%
22.4%
95
103
102
86
141
94
94
Adult Child/Children in parents home:
18-24 years old
25+
5454
2740
1337
531
18.6%
7.4%
24.5%
19.4%
103
81
HH With Children:
Under 3
3-11 years
Under 12
12-17 years
Under 18
2586
6308
7600
6919
12062
619
1456
1776
1348
2674
8.6%
20.2%
24.7%
18.7%
37.2%
23.9%
23.1%
23.4%
19.5%
22.2%
100
97
98
82
93
24
Vodka Market in US and Canada
Appendix B: Vodka consumption by brand, PMB
25
Vodka Market in US and Canada
Appendix C: Economist, Spirits Consumption by Country
26