Super Premium Liquor on the Rise
Bloomberg analyzes the rise of "super-premium" spirits including Elit vodka and Johnnie Walker Blue. Elit is poised to go up against existing premium vodkas such as Ketel One and Grey Goose. The article states that the sales of spirits is on the rise and that much of that growth is from the more expensive brands. Meanwhile, beer suffered a slight decrease. With more and more spirits companies now advertising on cable TV, the liquor industry is increasing its advertising push. A consultant in the article was quotes as saying that "it's the nature of the business that people who drive Mercedes want to drive a Maybach.'' This makes me curious about perceived value. Are we eager to drink newer more expensive spirits because we think they are fancier or because we think they taste better? I'd like to think that it is the epicurean urge not the label urge that drives the marketplace.