In The News

Skyy Vodka Mixes It Up: Chic is Out, 'Natural' Is In

March 10, 2008

By Eric Newman

Vodka's not a health food, but Skyy Spirits is betting consumers prefer their poison with all-natural ingredients.

Launching next month, Skyy Infusions will debut as a premium, fruit-infused vodka made in five all-natural varieties: citrus, raspberry, cherry, passion fruit and grape. The product restage also will introduce the Skyy line's new slimmer packaging design.

"All-natural is what's hot right now, across the food and beverage industries," said Kirsten Van Sickle, senior brand manager at Skyy Vodka, San Francisco. "For us, we knew that we needed to come out with something that was very different and unique in the marketplace."

By capitalizing on the general market trend, Skyy aims to steal market share from competitors in the U.S. market, where the brand is currently the No. 4 vodka behind Smirnoff, Absolut and Grey Goose. Skyy sold an estimated 2.5 million cases in 2007-up 8.1%, per Impact, New York.

The all-natural proposition garnered 33% more purchase intent than Smirnoff's flavored product, and 13% more than Absolut's, per company research.

Also working in the brand's favor are recent Beverage Tasting Institute scores that show Skyy's products beating out all competitors across the various flavors, a point that will be hammered home in its marketing campaign.

Instead of its traditional brand advertising that posits the liquid in chic, club environments, the Infusions print ads will feature only the new bottle and fruit imagery, as well as educational copy. An ad for the raspberry flavor includes a listing of BTI scores, and the tag: "Why drink artificially tasting vodka when you can go natural?" Ads direct users to SkyyInfusions.com for more information. A 15-market, two-month mobile marketing tour and online ads also support.

Lambesis in Carlsbad, Calif. is Skyy's lead agency.

Print ads, which debut in April magazines including People, OK! and Real Simple, also unveil Skyy's new bottle.

The new packaging is the brand's first redesign in its 15-year history. Skyy now sports a sleeker shape and elongated neck. The new bottle design boosted purchase intent by 23%, per Skyy research.

While dollar figures were not revealed, the Infusions push will represent 50% of the brand's total ad spend for 2008. Skyy spent $14.9 million on advertising in 2007, per TNS Media Intelligence.

"If you're trying to be a more premium flavored vodka, you really need to distinguish yourself in a category that's usually seen as a mixer," said Lisa Pope of Pope Consulting, Minneapolis. "The all-natural positioning is important. It plays into the trends that are happening in the beverage category as a whole, and fits into consumers' needs at this time."

Skyy has discontinued its previous flavor line.

enewman@brandweek.com