The Hindu Business Line : Smirnoff Red holds its own against variants

THE cannibalisation bySmirnoff Twist, the flavoured vodka that was launched more than a year ago in the domestic market, on the mother brand Smirnoff Red has been minimal and well below the expected levels, Guinness UDV said.

The top company officials said the flavoured variants under Twist - citrus, orange, vanilla and raspberry - will account for 10 per cent of the total Smirnoff sales during the ongoing financial year, pegged at over 2.5 lakh cases annually.

Guinness UDV, part of Diageo Plc, launched Smirnoff Twist in India during early 2003 with the citrus flavour being the initial variant. Three more flavours have been added more recently, the company sources said, adding that the impact of Twist on the sales of Smirnoff Red was almost normal. "The cannibalisation of flavoured variants on Smirnoff Red has been between seven to eight per cent. At the time of the launch, we had been advised by the headquarters that it could be as high as even 40 per cent," the company officials said.

UDV had launched Twist after considerable pondering whether the flavoured vodka would impact sales of Smirnoff Red, which is staking claim as the largest premium white spirits brand in the country. The worry was real as Smirnoff vodka is mainly consumed in India with lime as the mixer. However, the company officials said the result of the last one-year has been reassuring and Twist has actually helped in expanding sales of Smirnoff. "We expected the flavoured variants to contribute 10 per cent of sales in the current financial year (July-June)," the company officials said.

Meanwhile, there is no news still on the company's plans to uncork Smirnoff Ice, RTD variant, in the country. Guinness UDV is yet to commit on the introduction of the RTD as the segment has remained rather sedate on account of gender-specific image trappings and relatively higher unit prices. The company, which sold its IMFL business in late 2002, is now focused on building its international portfolio in the country. This include imported Scotch brands like Johnnie Walker, J&B, Baileys Liquer and locally bottled Scotch whiskies such as Black & White and Vat 69, besides its largest selling brand Smirnoff.