The Premium Wave

Absolut and Art as Advertising

In 1979, the Swedish state-owned company V&S brought Absolut Vodka to the American market, packaged in a simple bottle reminiscent of an apothecary flask, without a pasted-on label. Instead of romanticizing its origins, the brand relied on art and design: in 1985, Andy Warhol designed an advertisement for Absolut, followed by campaigns with other well-known artists. This strategy turned a Swedish state spirit into a cult object of the New York art and club scene, proving that vodka could be differentiated through imagery rather than flavor.

Grey Goose and the Price of Exclusivity

In 1997, American entrepreneur Sidney Frank launched Grey Goose, a vodka distilled in France and deliberately positioned above the price level of existing premium brands. Frank had the brand placed strategically in exclusive restaurants and bars before it reached retail, and justified the higher price point with its origin in the Cognac region as well as multiple distillation. Commercial success was so great that Bacardi acquired the brand in 2004 for around two billion dollars, proof of just how much value could be created through positioning alone.

Belvedere and the Return to Origin

While Absolut and Grey Goose relied heavily on marketing, the Polish company Belvedere positioned itself from 1993 onward through a different narrative: a return to traditional Polish rye distillation. The brand deliberately emphasized the centuries-old Polish vodka tradition described in earlier stops on this journey, combining it with modern bottle design and international distribution. Belvedere thus represented a second path to premiumization, one built not on reinvention but on heritage and craftsmanship.

What the Premium Wave Changed

The successes of Absolut, Grey Goose and Belvedere transformed the entire category. Grain and potato variety, water source, distillation frequency and filtration method suddenly became selling points, even though many of these differences are barely detectable on the palate. Established producers had to catch up and launch their own premium lines, while at the same time new craft distilleries with small batches pushed into the resulting market gap. This diversification still shapes how vodka is produced, marketed and consumed worldwide today, as the final stop on this journey will show.

Doubts About the Premium Narrative

Not everyone believed the premium promises of the new brands. Blind tastings in magazines and television programs repeatedly showed that even experienced tasters could barely reliably distinguish expensive vodkas from cheap ones. The reason lies in the nature of the grain distillate itself: after multiple rounds of filtration, little inherent flavor remains to justify a genuine difference. Critics therefore accused premium brands of charging mainly for the bottle and the story, not for what's inside.

Producers countered that subtle differences in texture and finish did indeed exist, just more subtle than in whisky or wine. Regardless of who was right, the debate itself changed the market. Consumers began asking more carefully about origin, raw material and production method, instead of relying solely on bottle shape. This more critical attitude paved the way for today's diversity of small, transparently operating craft distilleries.

Some bartenders approached the debate pragmatically. They deliberately mixed expensive and cheap vodka in the same cocktail. In the drink itself, they said, the difference barely registers anyway. Others disagreed strongly. For straight tastings, they argued, a truly discerning palate was essential. Both sides at least agreed on one point. Price alone says little about actual quality. Origin, craftsmanship and transparency became the real point of contention. Anyone who doesn't put that to the test ends up relying, in the end, on nothing more than a pretty label and an expensive story. This honesty is good for the whole category. It forces producers to actually be able to back up their claims.