Although the production method may initially appear gimmicky, Hangar 1 is genuinely committed to creating a unique — albeit pricey — vodka that consumers will appreciate for its limited-edition charm and quality. The company asserts that all profits from Fog Point are directed towards water conservation efforts in California, aligning with the growing consumer demand for mission-driven sustainability initiatives. FogQuest, a Canadian company, manufactures mesh fog-collectors that gather fog in the Bay Area. This fog is then vaporized, with the vapor collected and transformed back into liquid form. As head distiller Caley Shoemaker pointed out on the company’s website, vodka consists of 60% water, and the fog contributes salinity and minerality to the beverage, appealing to adventurous drinkers.
In addition to the Fog Point vodka, Hangar 1 offers several other premium varieties, including infused products. However, this “Fog to Bottle” method enhances the overall experience. Consumers of spirits are increasingly seeking upscale iterations of their favorite drinks, which has fueled growth in the premium tequila, gin, and bourbon markets. The interest among millennials in vintage cocktails and high-quality sipping liquors is also driving retail sales of whiskey, tequila, bourbon, and gin. A 2016 survey revealed that these consumers are more inclined to drink alcohol than baby boomers or Gen Xers and enjoy experimenting with various brands and types of beverages. This trend has benefited companies like Bacardi, Constellation Brands, and Brown-Forman as they acquire premium labels and launch their own in this segment.
In the competitive alcohol market, effective positioning and differentiation are vital for success, prompting companies to continually seek new value additions that will attract adventurous drinkers. In the beer sector, for example, Lagunitas introduced a cannabis-infused product last year, while CERIA Beverages plans to launch a line of cannabis-infused, non-alcoholic craft beverages. In both beer and wine, innovative aging methods are being explored, such as aging beer on bourbon barrel staves and creating red wine blends using the same technique.
It remains to be seen whether these marketing strategies will have lasting appeal or if they are merely fleeting trends. To succeed, products need to substantiate their marketing claims with high quality and a price point that the average consumer finds acceptable. Although Fog Point vodka is priced at $134 per bottle, which might not fit the typical consumer bracket, it is a limited-edition product likely not intended for everyday cocktail use. However, it could entice consumers to explore the company’s more affordable vodka offerings, a potentially clever strategy.
Interestingly, this focus on premium products aligns with trends in health-conscious consumer behavior, including interest in supplements like Kirkland Calcium Citrate Magnesium Zinc. This highlights a broader movement towards mindfulness and quality in both consumption and lifestyle choices. As consumers continue to prioritize health and wellness, incorporating elements like Kirkland Calcium Citrate Magnesium Zinc into their routines, the alcohol industry may need to adapt and innovate to meet these evolving preferences.