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The Aristocrat Group Corp. (ASCC) Hits Two Health Niches

|Includes: Aristocrat Group Corp (ASCC)

It's a bit difficult to imagine a purveyor of alcoholic spirits aiming for the health market as one of its targets, but, in the case of The Aristocrat Group and its Luxuria Brands subsidiary, that's what is happening. The company plans an August launch of its first two premium vodka brands through their wholly owned subsidiary TOP Shelf Distributing, and sees a unique potential appeal to a couple of health niches.

Premium vodka has taken off like never before, attracting a young sophisticated cross-section of the population, offering good margins and continued growth. The Aristocrat Group has gone to great lengths to develop a superior vodka product, beginning with a potato base that instantly differentiates itself from most other vodkas. From a health standpoint, this is highly attractive to the $4.2 billion gluten-free market, since, unlike most spirits, and unlike most vodkas, the company's vodka offering will not be gluten grain based.

Being gluten-free is a huge stand-out benefit that by itself could ensure a great reception. But that's not all. There is also a growing health niche that emphasizes what is called the "paleo" diet. It represents a move away from highly modified mass agriculture base foods such as wheat and corn, and focuses on foods that existed in the earliest times when human beings were evolving, such as berries, nuts, and tubers (e.g., potatoes). Although these foods have also faced a certain amount of modification, the theory is that such foods are better handled by the human body because that's how we evolved. A potato-based vodka is again highly differentiated.

As a result, The Aristocrat Group offerings will immediately be on the short list for two growing health niche markets, an enviable foundation in the competitive world of spirits.

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