Vodka Marketers Look To Stand Out Amid Competitive Conditions

While vodka has been challenged lately by the rise of RTDs, it remains the largest spirits category in the U.S., despite slipping 3% to 75.4 million cases in 2024, according to Impact Databank. This year, vodka marketers are focused on maintaining share amid a competitive market, while leveraging innovation to keep consumers engaged.

Tito’s Handmade vodka remains by far the largest player, with $2.6 billion in U.S. retail value last year and volume of 12 million cases. However, Tito’s volume fell 1.5% in 2024, marking its first decline after years of buoying the category. “Tito’s ($30 a 1.75-liter) is the top selling SKU in the store by far, and it’s interesting to note that it brings in 400% the revenue of Ketel One ($35), our No.-2 vodka SKU,” says Max Girardin, liquor department manager at Hazel’s Beverage World in Boulder, Colorado. “When accounting for every format of Tito’s that we carry, the brand accounts for a quarter of all of our vodka sales.”

The No. 2 vodka brand in the U.S. is Diageo-owned Smirnoff, which declined 4.8% to 8 million cases last year. “In the sub-premium category, Smirnoff remains a consistent performer,” says Sadr Amir, CEO of Seattle retailer Downtown Spirits.

“We observed a noticeable lift in the super-premium and premium vodka categories, particularly around the holidays and larger social gatherings,” Amir adds. “Grey Goose continues to lead this category in our stores, with Ketel One and Belvedere following closely. On the lower end, Smirnoff demonstrated strong velocity throughout the year, maintaining its position as a top-performing brand in the under-$25 category. This trend highlights the consumer shift toward premium options for special occasions, while value-oriented options like Smirnoff remain staples for everyday purchases.”

“We anticipate the premiumization trend to continue across the spirits industry beyond 2026, but especially when it comes to vodka,” says Aleco Azqueta, Grey Goose’s vice president of global marketing at Bacardi. “To meet this growing desire, Grey Goose released a new prestige expression last summer called Grey Goose Altius.”

At Molly’s Spirits in Denver, chief administrative officer Crystal Marine says customers are shopping with keen eyes. “The Colorado consumer is increasingly health-conscious and environmentally aware,” says Marine. “Brands can tap into this by highlighting eco-friendly production processes; offering lower-calorie, gluten-free, or organic options that cater to those seeking healthier alternatives; and marketing clean, simple ingredients, with transparency about sourcing and production.”

One emerging brand using this approach is Weber Ranch 1902, the first launch from Round 2 Spirits, a new company created by Patrón veterans John Paul DeJoria, Ed Brown, Lee Applbaum, and Dave Wilson, as well as Brad Vassar, a former Southern Glazer’s executive. The vodka, which retails for $28 a 750-ml., is distilled from 100% Blue Weber agave. Weber Ranch launched last summer and has seen significant traction amongst both vodka and Tequila drinkers.

“I couldn’t be more pleased with the universal positive feedback we’ve received from distributors, retailers, bartenders, and of course, consumers,” says Applbaum, who serves as president and COO of Round 2 Spirits. “People are intrigued by the idea of a vodka distilled exclusively from agave, and they’re excited about something new and innovative in the vodka space.”

Tagged : New Amsterdam, Smirnoff, Svedka, Tito's, Weber Ranch

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