Blavod Extreme Spirits: super-premium status could prove lucrative niche
Published:13-April-2006
By BR staff writer
Driving Blavod Extreme Spirits' growth in the US has been the company's line of infused vodkas and rums, while the company's Italian wine portfolio has also showed strong increases. The London-based wine and spirits group has worked hard to market its products as fashionable and is now set to take advantage of a global trend for niche premium drinks.
Blavod Extreme Spirits expects to post profits this year after a loss in 2005.
Datamonitor research suggests that consumers are seeking niche drinking experiences driven by an adult consumer interest in quality. Indicative of this trend towards niche premiumization, Blavod opted to undertake some hefty investment in brand repositioning and repackaging.
It was a risky strategy that may have contributed to its disappointing fiscal return in 2005. Yet the gamble may be about to pay off, with the firm predicting increased revenues and growth in both the on- and off-trade for this year.
An emphasis on premium and differentiation from the crowd has ensured that Blavod's spirits line has achieved the niche cult factor that so many new brands struggle to obtain.
To give one example, Sean "P Diddy" Combs' bar-restaurant, Justin's, offers guests Players Punch, a combination of all of the Players Extreme flavors - Blavod Extreme Spirits' infused vodka line, emphasizing how this company has infiltrated the fashion world.
In this way, Blavod has seen its drinks attract that all-important 'cool' factor without spending vast amounts in marketing. Its super-premium positioning where the product has the endorsement of celebrities should, with time, filter down to a more mainstream - although still clearly discerning - audience.
This trend, which can be described as the 'democratization of luxury', is one reason for the emergence of a new trend for super-premium spirits. It is clear that Blavod is looking to capitalize on this trend and all the signs are that novelty niche products, such as black vodka, are here to stay.
