Beverage Dynamics

Beverage Dynamics May-June 2016

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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www.beveragedynamics.com May/June 2016 • Beverage Dynamics 33 SEEING THE LIGHT Consumers are coming around to the unique characteristics of light rum. "THE STARS ARE ALIGNING for rum; I think it's going to be the next hot spirits category," says Draga Culic, brand director at Niche Imports, whose portfolio includes Mezan Rum. She cites growing interest in the spirit among both consumers and mixologists, and sees a bright future for rum both off- and on-premise. Indeed, rum seems perennially on the cusp of breaking big. It sure has a lot going for it. Rum has a spectrum of styles wide enough to satisfy every drinking occasion - it's a re- quirement in many cocktail recipes and consumers' palates would seem to be aligned with the spirit. Rum is a bargain, too; there are plenty of well-made, value-priced products, and top-shelf superpremiums boast age statements to rival any whiskey or brandy (at better price points). And all of the new boutique producers and unusual bottlings on shelves and backbars should amply pique consumer interest. Then there's Cuba and the improving relations with the U.S. Increased tourism there and the growing vogue in the States for all things Cuban may spark interest in rum overall. TURNAROUND ON THE HORIZON? Just a few years ago, rum's star was rising. Revenues were up a healthy 3.3% in 2013, according to the Distilled Spirits Council (DISCUS), with significant rises in the superpremium (5.1%) and high-end premium (13.3%) that boded well for rum. Since then, sales have slumped; revenues were down 2.0% in 2015, according to DISCUS, with bright spots in the value (1.2%) and superpremium (2.8%). How can the rum category regain its momentum in the U.S. market? "Rum can regain its momentum by capitalizing on what makes it different from other spirits," says Mauricio Ber- mudez, director of marketing for Bacardi Rums. "First, rum is versatile and easy to drink, yet it has more character and taste than most spirits," he says. "It also mixes with everything but does not blend in and get lost in a cocktail." "The momentum for rum is growing stronger," says Carlos Esquivel, CEO of Pilsa Rums, a Panamanian producer of Don Pancho Origenes, Cana Brava and Selvarey brands, among others. "Five years ago, retail stores, bars and restau- rants would only carry a few bottles of rum; today, you'll find a much wider se- lection on the shelves and extensive rum menus in bars, classified by style, country of origin and age." MARKET DYNAMICS A number of factors seem destined to drive interest and sales, including the popularity of classic and new-wave rum-based cocktails, as well as a prolif- eration of rum-oriented bar and restau- rant concepts popping up around the country. Perhaps most importantly, there is a wide array of rum types—light, spiced, dark and amber, which, Bermu- dez says, "provides the opportunity to adapt to the constantly changing con- sumer palates." "The resurgence of the classic Daiquiri has been favorable to rum, as well as the openness of bartenders to experiment with non-traditional spirits to make clas- sic cocktails," says Amanda Paul-Garnier, brand manager at the Edrington Group, whose portfolio includes Brugal Rum. "Tiki culture continues to gain more popularity on-premise; bartenders are becoming more enamored with crafting variations of those cocktails," points out John Eason, COO and executive vice president at Serralles USA, whose port- folio includes the Don Q brand. "Many top restaurants now include a premium rum section in their menus, just as they would other spirit categories. Those con- sumers are enjoying a great rum at home just as they would a Bourbon or single malt neat." "Tiki drinks are driving interest in and sales of rum," says Culic, noting that BY THOMAS HENRY STRENK

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