Tito’s Sees Smaller Formats Stoke Growth, As Volume Climbs Above 12M Cases

Already at an enormous base, Texas-based Fifth Generation has seen its sole product, Tito’s Handmade Vodka, continue to post impressive growth. Last year, the brand built on its previous strong performance that has propelled it to the top of the vodka category with additional 5% growth, pushing above 12 million cases for the first time, according to Impact Databank’s estimate.

At just under 12.2 million cases in 2023, Tito’s is now about 3.5 million cases ahead of its closest competitor in vodka, Diageo-owned Smirnoff. The brand has more than doubled in size since 2017, even amid markedly increased competition from RTDs. Including Tito’s, the top 20 vodka brands in the U.S. collectively expanded by 3.35 million cases in the past five years; excluding Tito’s, the top 20 would have been down by more than 2.6 million cases over the same span.

Tito’s outsized influence in the U.S. vodka market can also be seen in category pricing trends. In 2017, vodka’s $10-$25 bracket, which includes Tito’s, represented about a 55% share of the category. Since then that price tier has climbed to nearly 65%, as the above-$25 and below-$10 segments have lost one percentage point and eight percentage points of share respectively, according to Impact Databank. Overall, Tito’s continues to lead the U.S. spirits market in retail value terms, worth nearly $2.5 billion last year, followed by Crown Royal and Hennessy, respectively. Its closest vodka category competitor is Smirnoff, at approximately $1.25 billion.

Frank Polley, vice president of trade marketing for Tito’s, tells SND momentum has remained strong for the vodka leader. “We’ve seen strong growth from both our 50-ml. SKU and 50-ml. 12-pack SKU, and saw an opportunity for a package extension in the study we conducted,” he says. “With that, a new 50-ml. 4-pack is coming in April for on-the-go, traveling, gifting, and small gathering occasions.”

Tito’s has become more aggressive on the marketing front in recent years as RTDs have spread their wings in the spirits category, in particular High Noon from Gallo, which has siphoned consumers from the vodka segment. The brand has poked fun at seltzers with a “Tito’s in a Can” campaign among other moves. Continuing the ramp-up, last month the company launched its first brand platform, called ‘With Tito’s.’

As a part of ‘With Tito’s,’ the brand recently launched a ‘Spokescart’ campaign, featuring an autonomous bar cart that delivers cocktails to drinkers in a series of ads. The push aims to play up Tito’s focus on the product, contrasting with celebrity-driven spirits ads.

“We’ve always let our product speak for itself,” says Polley. “A no-BS, high-quality vodka made for anyone who believes that it is the spirit inside the bottle that matters. So, instead of hiring a spokesperson, we created one as a vehicle for that message: a friendly, autonomous bar cart made of equal parts congenial charm, resourcefulness, and, best of all, timely mixology.” Spokescart spots are running across social, digital, and streaming advertising this year, and Polley says Tito’s is exploring opportunities for it to show up in real life at events across the country.—Danny Sullivan

Tagged : Fifth Generation Inc., Tito's

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