Drinking away our recession woes? Not really...

Cordial and liquor sales are proving to be non-resistant to the economic recession, as sales of Absolut, the #2 vodka seller by volume in the US, posted a 6% loss year-over-year as consumers downgrade to cheaper brands. Smirnoff, the #1 brand of vodka by sales volume, however, increased its sales by 1%. Grey Goose, Skyy, and Svedka rounded out the top 5 in US sales. The difference between 1 and 2 comes down to pricing essentially. As cordials and liquors are discretionary commodities, consumers will look for the most bang for their buck, as is most evident with the college community, as Vladimir and Banker's Club are common choices as a means of conserving what little cash they may have. Advertising also plays a major role as some consumers find the sophisticated commercials off-putting and continue to resort to cheaper brands. If Absolut and others are looking to increase profit margins and market share they must find a way to recalculate their pricing models and advertising avenues. Until the recession subsides, consumers will continue to rely on cheaper brands to meet their discretionary needs.