More People Are Drinking This Instead of Smirnoff and Absolut Vodka

Move over, Big Vodka: Craft distillers have already taken their shot at gin and bourbon, and now they're moving in on vodka's turf.

Vodka brand giants Smirnoff and Absolut were already dealing with a sales hangover as American drinkers, especially young adults, switched to more flavorful spirits produced by smaller distilleries. For the most part, these drinkers have grown less interested in what Bloomberg termed, "Russian mystique and Scandinavian chic." Sales volumes for both have ticked down in recent years, while sales of artisanal vodkas like Tito's Handmade and New Amsterdam (which is actually owned by wine behemoth E&J Gallo) have grown steadily.

According to Bloomberg, Smirnoff parent Diageo is throwing $50 million at the problem with a nationwide marketing and tasting campaign targeted at young adults, while Absolut is taking an "if you can't beat 'em, join 'em" approach by adding the word "craft" to its bottles.

Absolut also introduced a darker-colored, barrel-aged vodka aimed at the growing legions of whiskey drinkers. Whiskey is enjoying an increasing popularity, fueled primarily by growing interest in craft bourbon and rye, a trend that some analysts think will last through the end of the decade.

For what it's worth, Absolut's approach seems to be working too, since its sales have been inching up recently. Smirnoff sales have stayed on the decline, however, despite (or perhaps because of) its status as the cheaper mainstream brand.