Beverage Dynamics

Beverage Dynamics July-August 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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Dark Rum 26 Beverage Dynamics • July/August 2016 www.beveragedynamics.com mudez, director of marketing for Bacardi Rums. "However, with the recent momentum behind brown spirits, some consumers are entering the category via aged/dark rums, instead of trading up from white rums." Esquivel at Pilsa Rums also sees rum drinkers graduating from light to dark as their palates mature. "The U.S. consumer is dis- covering aged premium rum as sippers. Aged rums are more appealing to the upscale customer, refl ecting a maturity of taste and experience and a better economic position." THE WHISKEY CONNECTION Perhaps the best way for dark rum to succeed in the U.S. market is to lure customers away from the whiskey category. It seems like a natural transition; dark rum and whiskey both obtain sim- ilar fl avor characteristics of caramel, vanilla and spice—as well as color—from extended aging in charred oak casks. Indeed, many dark rums have been resting in previously used whiskey barrels. Most players in the rum category see a natural crossover from the whiskey category as one avenue for increased growth. "A lot of the high-end rums have taste profi les that are similar to whisky, but are more approachable, like our Brugal 1888, which we call the rum for whisky lovers," says Amanda Paul-Garnier, brand manager at the Edrington Group. "Dark rums like this can't compete with whisky per se, because people that want to drink whisky are going to drink whisky, but they can appeal to people who are whisky-curious, but are looking for something more approachable." Adds Foster at Beam Suntory, "Whiskey and Bourbon afi cio- nados continue to look for other spirits with complex fl avor pro- fi les similar to the ones they know and enjoy, and are certainly among those choosing our premium aged rums like Cruzan Sin- gle Barrel and Estate Diamond Dark." "Dark rum can compete with whiskey by exploiting its acces- sibility and less-challenging profi le," says Bermudez at Bacardi. "Currently, rum is already competing much more directly with whiskey with the rise of the premium and sipping rum segments. These rum segments serve the robust sipping experiences that many whiskey drinkers enjoy, but also offer the incredible versa- tility and diversity of rum profi les." One area where rum has a signifi cant advantage over most whiskey is in the price-value equation. "Aged rum is a great value," says Draga Culic, brand director at Niche Imports, whose portfolio includes Mezan Rum. "Whiskey price points are much higher than rum for products of comparable age and quality." BAR TRANSLATIONS A number of on-premise trends are translating into off-premise sales. Bars are the gateway for virtually all spirits categories, in- troducing consumers to new categories and products via cock- tails, shots and fl ights. There is less risk to trying something new at a bar compared to splurging on a 750-ml. bottle at retail. Nat- urally, that includes aged premium rums that are generally more expensive than light rum. "An exciting movement that is driving awareness of the cate- gory is the increase of high-end rum bars, which continue to pop up across the county," notes Foster at Beam Suntory. "Bartenders are crafting variations of tiki and rum classic cocktails," says Eason at Don Q. "Many top restaurants now include a premium rum section in their menus just as they would other spirit categories. Those consumers are enjoying a great rum at home just as they would a Bourbon or single malt neat." "We're seeing the emergence of bars where rum is the star," says Moll at Campari America. "There's an increasing number of on-premise accounts where bartenders are stocking their back bar with dozens of premium rums like Appleton Estate. These bartenders are introducing consumers to the vast world of rum, and the consumers then look for these brands in stores so they are available in their homes for use in classic cocktails or as a sipping spirit." The off-premise represents 80% of total rum business for Campari America. "However, for our higher marks (specifi - cally Appleton Estate Reserve Blend and Appleton Reserve

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