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Vodka

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Submitted By casper06
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Vodka Leader
Factor Conditions Trying to understand how Russia mastered their art, you must understand the factors that assisted the country. The factors that must be considered are the skills and technology resources that are available to the country. Russia has been using distilleries for many centuries which have helped to reinvent and perfect the process. A Russian scientist is recognized as the individual who invented the idea of using charcoal to purify the vodka (All About Vodka.) By the end of the 18th and 19th century, Russia is noted for having the most perfectly sound technology in the world for making and distributing vodka. This country takes much pride in their product that in 1902 a law, Moscow Vodka, was created as a benchmark for future vodkas that were to be produced (All About Vodka.)
Firm Strategy, Structure, and Rivalry Russia uses a unique process and ingredients when they make their unique and signature vodka. Vodka is generally made from grain, potatoes, molasses, beets, and other ingredients made from vegetables (Vodka.) Countries like Sweden, Poland, and America all use their own various array of ingredients to make their own unique vodka. Russians prefer to make their spirit out of wheat and rye instead of potatoes like the Polish (Vodka.) Because the Russians prefer to use different ingredients than their competitors, they have been able to create a distinct and memorable taste than their counter parts which allows them to have a competitive advantage. Consumers are able to taste the superior difference in Russian vodka and other vodka. Even though Russians were the ones to master the art of creating the spirit, the ability to create it was not a privilege to everyone (All About Vodka.) The ability to create the coveted spirit was only allowed by those of “nobility.” Being able to create vodka was seen as having a high status because everyone was not issued a permit to have distilleries. The limitation led to “common people” to moonshine their vodka. Those who made the vodka legally wanted to produce better vodka than those who created illegally, which lead to domestic competition in the country because both parties wanted to create the best product.
Related and Supporting Industries There are many companies within Russia that make and distribute vodka internationally. For example, Russian Consumer Company is one of Russia’s most globally prosperous consumer companies that has interest in vodka, wine, spirits distribution, banking, and insurance (HL.) The Russian Standard Company also is the second largest producer of vodka in the world. The company includes stake in Green Mark, Parliament and Zhuravli, and Russian Standard vodka (HL.) This allows for Russia as a country to be a major player in the spirit industry even though there are numerous companies in Russia that produce vodka. Russian vodka is held to such admiration that it is used to fortify the sherry in Spain during the early 19th century (Vodka.) The vodka was used to strengthen the weak wine and make it more potent. The production of sherry and other fortified wines still use the Russian vodka which has helped with sales of the Russian product.
Demand Conditions The sale of Russian vodka was halted for a brief period of time this summer. Sales were halted due to some political and human rights issues that were going on in the country concerning the lesbian, gay, bisexual, and transgender (LGBT) community. The issue affected the industry because the LGBT community decided to boycott and waste vodka in the streets to show their disapproval of the policies in Russia. The vodka companies fell between a rock and a hard place because they did share the same views as their government. To mend ties and to stop the boycott, some companies, like Stoli, reached out to the LGBT community (Wong.) Despite this minor setback, vodka is the driving force behind many “mixed” alcoholic beverages. The spirit was initially thought of to be flavorless and less desirable in various countries (Clark.) This same flavorless spirit started to be used as a staple to fuel many alcoholic beverages. The flavorless spirit allowed the drink to be stronger without changing the initial flavor of the drink. A few drinks were named in the favor of the founding country like Moscow Mule and White Russian (Clark.)
Conclusion
The art of creating the best vodka has taken Russia many centuries to perfect which has lead them to be a force to be reckon with. By knowing the best ingredients to use and what type of purifying system to create the best results, Russia has been able to distinguish themselves from everyone else. The domestic competition for the Russian vodka market allowed the country to discover how to make the best vodka and create the finest technology in the world for production. The versatility of vodka has helped catapult the spirit globally. Russian vodka was used to not only intensify sherry, but also alcoholic beverages. Russia will continue to be a force to be dealt with as sales continue to climb and they continue to evolve.

References:
All About Vodka. (n.d.). In Tasting.Com. Retrieved September 13, 2013, from http://www.tastings.com/spirits/vodka.html
Clark, P. (2010, April). Clearing the Way. In Imbibe. Retrieved September 15, 2013, from http://imbibemagazine.com/Vodka-Makes-a-Comeback
HL. (2013, June 6). Russian Standard Becomes 2nd Largest Vodka Producer in the World. In Hospitality Leaders. Retrieved September 13, 2013, from http://hospitalityleaders.com/2013/06/06/russian-standard-becomes-2nd-largest-vodka-producer-in-the-world/
Vodka. (2008, February 25). In Food, Nutrition, and Science. Retrieved September 14, 2013, from http://www.foodnutritionscience.com/index.cfm/do/monsanto.article/articleId/123.cfm
Wong, V. (2013, July 31). The Gay Boycott Against Russian Vodka: Stoli's CEO Speaks Out. In Bloomberg Businessweek. Retrieved September 15, 2013, from http://www.businessweek.com/articles/2013-07-31/the-gay-boycott-against-russian-vodka-stolis-ceo-speaks-out

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