Strategy: Stolichnaya Fights Back With 'Mother' Of All Efforts

- Kenneth Hein

Stolichnaya had long been a trendsetting vodka. It was the first imported Russian vodka, first to launch flavored line extensions and one of the first to debut a superpremium offering (Stoli Gold in 1986). Today, however, trendier bar calls such as Grey Goose and Skyy have shot past the venerable brand in terms of sales and image.

Stolichnaya's parent company, Pernod Ricard (which acquired the brand from Allied Domecq in 2005), plans to put the label back on the path it blazed. Beginning next month, Stolichnaya will launch its first global advertising effort prompting consumers to "Choose authenticity."

From April to June alone it will spend as much as $10 million on marketing designed to tout the vodka's heritage. Creative will trumpet Stolichnaya as "The mother of all vodkas from the

motherland of vodka," among other boasts. Boutique agency Marcel Republique, Paris, handles.

"The brand is getting back to its roots. Authenticity is what differentiates Stolichnaya from others in the category," said Susan Kilgore, brand director on Stolichnaya at Pernod Ricard USA, Purchase, N.Y. "Authenticity is a value that is of increasing importance among American consumers and there isn't anyone else in the category that can make the claims that we can."

A revitalization effort has long been needed, said Clyde McClain, North America president at the Marketing Store, Chicago. While new players have been drinking up double-digit growth, Stolichnaya "was one of those brands that never repositioned themselves. It is more of a hard working, blue-collar brand while the trend has moved toward premium brands," said McClain.

Despite its image problems, Stolichnaya grew last year, as did most brands in the vodka category. Sales were up roughly 5%, giving the No. 5 vodka brand 2.1 million cases sold, per Impact, New York. Smirnoff leads the category.

Stoli's new campaign looks to recruit more men and women 25-35, via ads in May issues of GQ, InStyle and Rolling Stone. Creative borrows from the visual style of Russia's constructivism movement which celebrated bold, strong industrial iconography. Outdoor and online ads will support; TV and other media also are being mulled.

Kilgore said she wants this year's increased advertising spend "[to] accelerate growth. Our new focus and positioning statement is very relevant for recruiting consumers, I hope we can accelerate [sales]."

However, its authenticity claims have already been challenged by upstart brand Imperia Vodka. Last year Imperia launched its "Vodka is Russian" campaign, taking shots at the fact that Stoli is distilled in Russia, but bottled across the border in Latvia. Kilgore brushed off any claims against the brand's heritage.

Stoli spent $6.6 million on media last year, down from $8 million in 2005, per Nielsen Monitor-Plus.