BusinessWire suggests that Grey Goose is doing well despite the recession, repeatedly pointing out that the vodka’s draw seems to be the appearance of attainable luxury. Further, it is the vodka that is asked for most by name. The article says that Grey Goose’s steady high price and year-over-year growth of 2% shows that consumers are willing to take economic hits in other areas rather than drop brand loyalty to Grey Goose.
It’s hard to find customers that loyal, but it’s also hard for me to understand that level of brand loyalty. I’m sure some of it is due to ignorance of other really great vodkas on the shelf, but I think the quote from Michael Girard, owner of Girard Diversified Interests, tells a lot.
GREY GOOSE continues to acquire 95% of my overall bottle service sales as the brand has become synonymous with bottle service. While I continue to see other premium brand vodkas drop, GREY GOOSE continues full steam ahead.
Bottle service isn’t cheap. If you have the cash to be buying bottles at a club for 5 times the price of the bottle at a liquor store, you might as well be drinking the vodka that has the best luxury brand connotations.
I’ve heard it a lot recently, though: Alcohol and tobacco will always sell well, especially in a recession.
Ben
“GREY GOOSE has maintained its commitment to not discounting, as many competitors have done, and its value share has increased in the latest 13 and 26 week Nielsen reads despite volume share showing slight declines.” -Same article.
Value share increased while volume share decreased. I guess the big question is, how big is the market overall? If the market hasn’t increased to offset Grey Goose’s volume share declines, they are selling less today.
Robert
Ah, damn. I missed or misread the volume share decline. This was a lot more of a PR piece than I thought! With their restaurant sales up so high (at least in the upscale place), they must be losing sales in the liquor stores. I imagine the market has taken a slight dip in upper-shelf vodka sales, but it’s hard to read into it much when they are quoting numbers for value share and giving qualitative descriptions for volume (i.e. volume share showing slight declines).
Austin Smith
Hmm, I am not that loyal. While I do enjoy Grey Goose, I switched completely to 360 because 40$ a liter for Grey Goose is ridiculous.
Robert
That’s the exact reason bang for the buck exists.