Top Vodkas Aim To Hold Share Amid Challenge From RTDs
January 22, 2025The vodka category still reigns supreme in volume terms among all spirits in the U.S. market at 75 million cases in 2024, according to Impact Databank. But growth has been challenged the past couple years as consumers have gravitated to RTDs, which are now the second-largest spirits category at nearly 65 million cases.
Tito’s long growth run came to an end in 2024, albeit with only a 1.5% decline last year, according to Impact Databank’s estimate. On a value basis, Tito’s remains the largest seller among all spirits brands at more than $2.5 billion in retail dollar terms, just ahead of Crown Royal.
Tito’s volume dip could mark just a temporary lull or a turning point, depending how 2025 plays out. Aware of the challenge from RTDs, Tito’s has become more aggressive in terms of above-the-line marketing in recent years, even taking playful jabs at the RTD segment, including with its “Tito’s in a Can” campaign. The brand has also leveraged consumer interest in alternative bottle sizes to hang onto share, debuting a four-pack of 50-ml. bottles last year.
Diageo-owned Smirnoff has combatted the rise of RTDs with cocktail launches of its own, including a line of Smash Vodka Sodas that hit the market last year. But the core vodka has continued to slip recently, declining by about 900,000 cases over the past three years, after enjoying renewed growth during the pandemic.
While High Noon has become Gallo’s lead horse in the spirits category, the company has also seen steady long-term growth from New Amsterdam vodka, which has added more than 1 million cases in volume since 2017 despite being flat in 2024. Last year New Amsterdam debuted Heat Check, infused with Serrano, Fresno, and Habanero peppers, targeting the spicy flavor segment, marketing the label on the YouTube hot sauce-themed interview show Hot Ones.
This month, Sazerac closed its deal to acquire fourth-ranked vodka brand Svedka from Constellation for an undisclosed sum. The move further bolstered Sazerac’s accessibly-priced vodka stable, which also includes Platinum 7X and Barton, among other brands. Svedka has fallen from 4.7 million cases in 2020 to 3.5 million cases last year.
Elsewhere in the vodka category, imports Absolut and Grey Goose also encountered tough sledding last year, dipping 4% and 2.7% respectively. Last year, Grey Goose extended its range at the top tier with a new expression called Altius aimed exclusively at top bars, nightclubs, and restaurants. Altius sells in 700-ml. and 1.75-liter bottles priced at the discretion of the venue, with a suggested price of $1,000 a 700-ml.
Absolut’s moves last year included a partnership with Universal Pictures’ movie Wicked, as well as the launch of a limited-edition bottle inspired by Andy Warhol’s rediscovered Absolut ‘Blue’ painting. The link between Warhol and Absolut dates back 40 years to when legendary drinks marketer Michel Roux and the brand commissioned the artist to contribute to its art-centric marketing.—Daniel Marsteller
| U.S.—Leading Vodka Brands1 (millions of 9-liter cases) |
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| Brand | Company | 2023 | 2024E | Percent Change2 |
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|---|---|---|---|---|---|---|
| Tito’s | Fifth Generation | 12.2 | 12.0 | -1.5% | ||
| Smirnoff | Diageo | 8.4 | 8.0 | -4.8% | ||
| New Amsterdam | Spirit of Gallo | 5.4 | 5.4 | – | ||
| Svedka | Sazerac | 3.7 | 3.5 | -6.2% | ||
| Absolut | Pernod Ricard | 2.8 | 2.7 | -4.0% | ||
| Grey Goose | Bacardi | 2.7 | 2.7 | -2.7% | ||
| Total Vodka Category | 77.8 | 75.4 | -3.0% | |||
| 1 Includes flavors, excludes RTDs. 2 Based on unrounded data. Source: IMPACT DATABANK © 2025 |
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Tagged : Absolut, Barton, Grey Goose, High Noon, New Amsterdam, Platinum 7X, Sazerac, Smirnoff, Svedka, Tito's
