Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
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points, and don’t see that changing soon. Consumers don’t see a need to trade up quickly as the economy recovers.” Indeed, Heaven Hill just concluded a major deal purchasing the rights to the competitively priced Admiral Nelson Spiced Rum brand from Luxco. Admiral Nelson has been one of the most consistent, fastest-growing spirits brands in the U.S. over the past five years, and last year it reached sales of 698,000 9-liter cases, a 22.5% increase. Terms of the sale have not been released. Leader of the Pack B Appleton Estate Reserve Fix toward value brands, premium products and spiced rums is being driven by consumer trends. “The category is dominated by two brands,” said Levine, “but consumers are latching onto rum, both in the premium and flavored segments. The category was formerly unbranded—consumers would order drinks like daiquiris or rum and cola without knowing what’s in it. They’re open to new things, to try- ing new things, and they have a lot more knowledge about rum.” “People are looking for something differ- ent in rum,” said John Eason, vice president, national sales manager for Serralles USA. “There’s a clear category leader, but people want flavor variety, and they’re looking for Appleton Estate Extra 12 Year Old Jamaican Rum leads the brand portfolio of five expressions, which also highlights Appleton Estate Reserve Jamaican Rum and the ultra-premium Appleton Estate 30 Years. value price points. When the economy is bad, people entertain at home more.” “Consumer confidence is rising, and the industry is on the upswing,” said Brittany Blevens, brand manager for Blackheart at Heaven Hill Distilleries. “But we see a real shift from premium- priced products to more mid-tier price acardi remains the big boy on the block, account- ing for more than a third of all U.S. volume. Sales were flat in 2010 at about 9.4 million cases, but that doesn’t mean the brand is sitting still. The brand kicked off a new ad campaign, “Bacardi Together,” in May, and is giving it a “significant above- line contribution,” according to Whitmoyer. The cam- paign features new 15- and 30-second TV spots as well The granddaddy of spiced rums, Captain Morgan, reached sales of almost 5.7 million cases last year, a 1.5% gain. as outdoor in five major markets. A Facebook promotion, “Like it Live, Like it Together,” plays off the new campaign. The pro- motion has given consumers the opportunity to vote for favorite “likes” and featured big events on Las Vegas and New York in June. “It’s all about bringing people together,” said Whitmoyer. Bacardi also has just come off its second year as official spirits marketing partner of the NBA where it has high visibility. It plans an expanded sponsorship next year with even more focus on its Thurgood Marshall scholarship pro- gram. We plan to energize our leadership position,” Whitmoyer said. “I believe there are bright times ahead for rum.” Part of the brand’s efforts include the introduction of two new products this year. Arctic Grape flavored rum follows the suc- cessful launch of Torch Cherry last year and other flavors like Rock Coconut. And Bacardi has added a hand-shaken daiquiri flavor to its ready-to-serve cocktail line. To hedge its bets, the brand also contin- ues to support Seven Tiki, a spiced rum from The 93 proof Blackheart Rum had a suc- cessful initial launch year in the U.S. in 2010. 14 • Beverage Dynamics • www.beveragedynamics.com • July/August 2011