StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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Sailor Jerry Spiced Rum, with its tattoo iconography, saw sales increase by 16% nationally last year, to 667,000 cases. With Pineapple, Mango, Passion Fruit, Tropical Banana, Melon and Cranberry Cherry already in the portfolio and joined by recent additions, Malibu has turned things around in the last few years. "The base brand has started to see some growth as well," said McCann. "We're really focusing 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 expanded 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 newness and excitement to the category as a whole," said McCann. Significantly, the idea is to take Malibu, thought of as a relaxed daytime occasion spirit, and develop a night- time 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 component 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. 26 Spicing It Up S 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 environment, 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 spirits, 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. Heaven Hill Distilleries' Blackheart is one of the newer, successful spiced rums to hit the market in the past few years. "For the retailer, we think the most impor- tant thing is that when people come into their store, nine out of 10 spiced rum buyers are already interested in buying the Captain," said Diageo's Herbst. Expanding the portfolio gives retailers a chance to increase profits by driving a higher register ring and expanding the drink- ing 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 exper- imentation is just beginning. As Bacardi's Whitmoyer points out, young legal aged male consumers drive the category, so package and label design is important in order to catch their eyes; for OakHeart, Bacardi opted for a quality, weath- ered look that differentiates the brand from Bacardi's flavored iterations. But it's the flavor profile that matters most. "We think it's a clearly superior liquid, good enough so you can drink it neat or on the rocks," he says. Now that Heaven Hill boasts two spiced Serralles USA has re-branded and re- packaged its BlackBeard Spiced Rum. StateWays s www.stateways.com s July/August 2012