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/705687
www.beveragedynamics.com S ince Colonial days, rum has been a popular quaff in North America; however, it could be argued that aged rum is still a relatively new category for U.S. consumers. For decades, the premium aged seg- ment has been largely eclipsed by the prevalence of light, spiced and flavored rums—on the retail shelf, in cocktails and in the spotlight of marketing campaigns. When consumers think rum, they still think light, an impression driven by its ubiquity in Daiquiris, Mojitos and tiki drinks. That attitude toward rum, industry observers say, is changing. More aged, premium products are showing up on retail shelves and backbars. And consum- ers, particularly those ever-questing Millen- nials who can recite chapter and verse on whiskey, are exploring other barrel-matured categories. This bodes well for the future of the premium aged segment. "The premium rum category is in its infancy," says Christine Moll, category marketing director – rum, Campari America, whose port- folio includes the Appleton Estate and J. Wray brands. "For many decades, the rum category was dominated by giants that positioned Light in the Dark rum as a standard, immature spirit specifi- cally with the rise of spiced rum in the 1990s and early 2000s." Indeed, the category seems divided in terms of sales and marketing. "When we look at the rum market, we separate the dark aged sipping rums from the white rum used in blended drinks," notes William A. Terlato, CEO of TD Artisan Spirits, whose portfolio includes Don Pancho Origenes. According to the Distilled Spirits Coun- cil (DISCUS), total revenues for rum were down 2.0% in 2015, while super-premium was up 2.8%--a segment dominated by dark, aged rums. However, contrast that with 2013, when revenues were up a healthy 3.3%. Since then, rum's share of the spirits category has dropped from 11.8% to 11.4%, according to the Beverage Information Group. How can rum regain its momentum in the U.S. market? GETTING UP TO SPEED "Rum has momentum; it doesn't need to re- gain it. The premium aged category hasn't peaked yet," says Carlos Esquivel, CEO of Pilsa Rums, a Panamanian producer of Don Pancho Origenes, Cana Brava and Selvarey brands, among others. "Today, aged rum is the new player in the spirits scenario—and it has come to stay." "For rum to break out, the aged expres- sions need to step forward," opines John Eason, COO and executive vice president at Serralles USA, whose portfolio includes the Don Q brand. "Aged rums are creating the most buzz." Indeed, it seems that some rum drinkers are trading over and up from light to dark rums. (Light rum was covered in the last issue of Beverage Dynamics). "We have been seeing light rum fans cross over into new territory and become open to greater experimentation than in the past," observes Kevin Foster, senior brand manager for rum at Beam Suntory, whose portfolio in- cludes Cruzan Rum. "It's thanks to a rising spirits/cocktail culture that has driven consumers to become more and more educated and in- terested in learning about the spirits that they drink." "Consumers are trading up to more aged, darker versions as their palates evolve," says Mauricio Ber- Dark rums are a bright spot in the category. BY THOMAS HENRY STRENK July/August 2016 • Beverage Dynamics 25