Absolut Digs In in War for Global Vodka Market
"Nightline" infiltrates "war room" where vodka maker keeps eye on competition.
AHUS, Sweden, March 29, 2010 — -- It was 11 a.m. on a Tuesday and there was vodka everywhere.
"Nightline" was in the "sensory analysis lab" at Absolut's vodka headquarters in Ahus, Sweden. This is their war room, where Absolut plots its path to vodka-world domination.
"The sensory lab is to understand the consumer, the consumer's perception," said Per Hermansson, the company's secret weapon. "Not only of our product but as you see also our competitors' products."
Watch the full story tonight on "Nightline" at 11:35 p.m. ET
It was 30 years ago that Absolut first took America by storm. With its bold name, iconic bottle and wildly successful ad campaign, the Swedish vodka quickly became the No. 1 imported vodka in the U.S. and the third-largest spirit brand in the world.
But even Absolut is not immune to a recession, and while people may drink more when times are tough, they're also less likely to fork out $30 for a bottle of vodka.
For the last two years sales in the United States -- the largest vodka market in the world -- have been sluggish. At the same time, hundreds of cheaper brands like Skyy and Svedka have flooded the market. But Absolut CEO Philippe Guettat insists he has no fear of losing the vodka war.
"Competition is always stimulating, and Absolut is by far today still the largest imported spirit in the United States," said Guettat. "We're holding our share."
