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.
Issue link: http://read.dmtmag.com/i/541538
Rum www.beveragedynamics.com July/August 2015 • Beverage Dynamics 35 "Rum is continuing to perform well and attract new con- sumers to the category each day. This is especially true in the ultra-premium tier, where people are learning to appreciate the nuances and complexities in quality sipping rums such as a brand like Zacapa Rum," says Daniel Kleinman, vice president of rum for Diageo North America. STUDY IN BROWN Many rum experts believe that there are lessons to be learned and tactics to take from brown spirits, especially the red-hot whiskey category. Indeed, there are many parallels in fl avors and aromas that can be drawn between barrel-aged rum and whiskey. When enthusiasts have had their fi ll of Bourbon and Scotch, the think- ing goes, consumers thirsty for the next bibulous frontier will turn to premium rums. Rum has the edge in price and retailers are starting to notice this trend. "Whiskey is at a peak right now; retailers are rushing to get them on the shelf, but there is a barrel shortage and you can't rush whiskey aging," says Alex Vaughn, liquor associate at Liquor Mart in Boulder, Colo. "I can see people investigating aged rums to fi nd those same fl avor notes." Among the rum brands moving well for the retailer are Mount Gay, Ron Abuelo, Zacapa and local distillers' products. "Bourbon has almost overtaken vodka as the best-selling spirit; but rum hasn't gone away. And I think aged rums can take business away from whiskey," says Jim Guzay, a manager at Minotti Wine & Spirits, one of fi ve retail stores in the Cleve- land area. Guzay says customers who are into barrel-aged spir- its are also into dark rums. Mount Gay and Bacardi are big sellers for Minotti. Plus, Guzay adds, "Rum is more reasonably priced than comparably aged whiskeys." Brand managers are also predicting cross-over from the other brown spirits categories. "In the last three to fi ve years, brown spirits have grown exponentially. As a sub-tier, the premium segment in the rum category has grown with it. Consumers are ready for lon- ger-aged, more robust sipping experiences," Krishnan says. He cites Bacardi Gran Reserva Ocho Años and the Bacardi Fac- undo Collection as prime examples of aged rums. "Dark spirit drinkers, Bourbon or whiskey, are more open to straight or aged rums, because of similar fl avor profi les," says Bailey Pryor, CEO and founder of The Real McCoy Rum brand. "Whiskey and tequila have experienced growth through premiumization. Rum is now experiencing the same transformation." "We see dark, aged rums like our Single Barrel and Estate Di- amond Aged Dark being enjoyed neat or over ice," says Lynch at Cruzan. "We expect to continue to see this trend grow as whiskey and bourbon fans seek out new spirits and rum drinkers explore the barrel-aged trends driven by these spirits." SWAPPING SPIRITS Some producers are setting their sights directly on whiskey afi - cionados. "With Mezan, we are going after the rum geek, not the mainstream rum drinkers," explains Persson. "We are target- ing whiskey drinkers, too." One hook is that Mezan XO is aged in used Bourbon barrels and produced in small batches. The company also makes a number of single-distillery vintage rums, such as Mezan Jamaica 2000 and Mezan Panama 2004. Rum is much more affordable than comparable whiskeys, too, she adds. At Campari America, Floor advocates connecting consum- ers from American whiskey to rum. "It's not going to take a lot to build those bridges. The aspects of whiskey that appeal CUBAN CONNECTION There may be more rum in the U.S. to talk about in the near future. As the United States and Cuba move towards normal- izing relations for the first time in 50 years (and possibly lifting the trade embargo), inter- ested parties speculate on what that will mean for Cuban rum in the U.S. market. Pernod Ricard, which markets the Havana Club brand globally, has reportedly invested in its Cuban distillery and registered the Havanista brand in the U.S. Bacardi retains the Havana Club trademark in the U.S. "Bacardi is proud of its Cuban roots. We have the utmost respect and sympathy for the Cuban people with whom we share a common heritage," says Amy Federman, director of Global Corporate Communications at Bacardi-Martini, Inc. "Regarding the current Cuban front, it is too early and would be highly speculative to comment on the embargo, sales, return and/or any actions relating to Cuba," she adds. "We will need to wait and see what the impacts are. We hope for meaningful improvements in the lives of the Cuban people and will follow any changes with great interest. In the mean- time, we continue to support the restoration of fundamental human rights in Cuba." BD