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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Sailor Jerry Spiced Rum, with its tattoo iconography, saw sales increase by 16% last year, to 667,000 cases. ing our strategy on the base and the summer state of mind of the Malibu drinker. We've spent quite a bit of money supporting the brand and consumer activation, and the launch of Malibu Black, increasing the flavors and launching pre-made cocktails has expand- ed its presence," she says. That brand expansion also led to Malibu Red, a blend of rum and tequila launched last spring with an eye to the nightclub and nightlife scene. "This is a new concept - we want to provoke thought about how people consider the category and infuse some new- ness and excitement to the category as a whole," said McCann. Significantly, the idea is to take Malibu, thought of as a relaxed day- time occasion spirit, and develop a nighttime presence. Tied in with singer-songwriter Ne-Yo, who worked with brand reps on flavor profile and graphics, according to McCann, the brand has started out focused more on-premise than off- in the short term. Continuing flavor innovation means being alert to changing consumer tastes. Cruzan last year launched Strawberry, after introducing the spiced Cruzan Nine in 2010. "New flavors do drive interest," said Cruzan's Wanna. "And unique flavors will bring in shifts in volume. We're not going to go out and come up with really obscure ones, but will come out with fla- vors depending on where we see consumers going." Cruzan's Strawberry rum is a good example, as ginger is the secondary flavor com- ponent in the extension. While flavors are important, Cruzan also has Light, Dark, 151, Blackstrap and Single Barrel rums as well as 11 flavors, and their challenge now is to expand consumer awareness and sampling of the brand. They've launched a new digital campaign and POS program, highlighting its authentic St. Croix roots, and, while nothing is currently planned, owner Beam might offer additional premium and superpremium extensions in the future as sippable rum becomes more popular. piced rum continues to grow rapidly, up to near 30% of total rum volume and growing about 7% last year; William Grant & Sons' Sailor Jerry keeps outpacing the subcategory in a competitive envi- Spicing It Up S ronment, noted Ken Reilly marketing director for the brand. Sailor Jerry has benefited not only from the imagery connected to tattoo artist Norman Collins but also the increased interest in Tiki drinks and darker spir- its, he added. The lifestyle component is very important for Sailor Jerry, which Grant supports with things like the "Sailor Jerry Presents" music series to differentiate the brand as the market becomes more crowded. "It's a very compet- itive segment now and obviously the retailer has a finite amount of shelf space." To make that space work better for the brand and retailers, new packaging using more tattoo artwork from Norman Collins will be employed to tie the rum to his personality and work. The competitive spiced environment has been ramped up by the roll out of Bacardi's OakHeart, the fourth largest spiced rum after only eight months, and Captain Morgan Black. "For the retailer, we think the most important thing is that when people come into their store, nine out of 10 spiced rum buyers are already interested in buying the Heaven Hill Distilleries' Blackheart is one of the newer, successful spiced rums to hit the market in the past few years. Captain," said Diageo's Herbst. Expanding the portfolio gives retailers a chance to increase profits by driving a higher register ring and expanding the drinking occasions for the brand itself. "We think there's continuing opportunity in the spiced rum space as these types of rums expand their foot print into other occasions," said Herbst, noting that higher-quality spiced rum experimentation is just beginning. As Bacardi's Whitmoyer points out, young legal aged male con- sumers drive the category, so package and label design is important in order to catch their eyes; for OakHeart, Bacardi opted for a quality, weathered look that dif- ferentiates the brand from Bacardi's flavored iterations. But it's the flavor profile that mat- ters most. "We think it's a clearly superior liq- uid, good enough so you can drink it neat or on the rocks," he says. Now that Heaven Hill boasts two spiced rum brands - Admiral Nelson's and Blackheart – the company will look to divide the con- sumer cohort further, with Blackheart aimed at a younger, edgier crowd interested in a bold, Serralles USA has re-branded and re- packaged its BlackBeard Spiced Rum. 18 • Beverage Dynamics • www.beveragedynamics.com • July/August 2012