Vodka and Bottled Water Two Peas in a Pod?

They're both colorless, odorless and tasteless by definition and look the same in a glass. But Deutsche Bank's Jamie Isenwater takes it a step further and argues that the US vodka market resembles the bottled water industry "in terms of a lack of product differentiation," which is a scary concept because bottled water is "an industry [that] has been plagued by price deflation and falling margins in developed markets for some time." Furthermore, vodka has a lower barrier to entry than bottled water due to its "lack of differentiation and the low capital requirements of the category," which makes it highly competitive "and thus highly commoditized."

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