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: https://read.dmtmag.com/i/541538
34 Beverage Dynamics • July/August 2015 www.beveragedynamics.com RUM'S READY TO REBOUND Premium straight and aged rums appeal to the modern, sophisticated consumer. he second-largest spirits category isn't resting on its laurels. It's on the cusp of being the next big thing, say industry experts, as rum's beach-bum image morphs into sophistication. Variety and versatility are rum's great- est strengths - attributes that should enable the category to win market share from the hot whiskey and tequila segments. To do that, though, consumers need to better understand this multi-faceted spirit through changing consumption patterns, drinking occasions, marketing and educational efforts. Rum has variety greater than just about any other spirit, ranging in character from white to gold to dark. Light rum's mixability is unequaled by vodka or tequila, and gold rum brings complexity to cocktails. Rich, barrel-aged sippers can hold their own against other brown spirits, afi cionados say, including bourbon. There is something for every drink- ing occasion and consumer palate. Rum has got it all. "The rum category includes a wide range of products, including both light and dark expressions, to meet all of our consumers' varied tastes and needs," says Arvind Krishnan, vice president and brand managing director for the rum category at Bacardi U.S.A. Some industry observers think that rum's rise has been somewhat hobbled by its fanciful reputation, but that is changing. "Rum is no longer about pirates, tropical beaches and tiki; that image is shifting. Rum today is more about the craft aspect," says Marlana Persson, marketing coordina- tor for Niche Import Co. The New Jer- sey supplier was recently acquired by the Dutch group Marussia Beverages, which brought with it the Mezan label of aged rums. Niche also imports Stroh, an over- proof rum from Austria. "Rum has a party reputation," adds John Eason, COO & executive vice president at Serrallés USA, whose fl ag- ship is the Don Q brand. "What's so exciting to see is that consumers are graduating from those occasions and discovering its elegance." "Pirates or beachside, that's where the category has been. But now we are start- ing to see brands talking about rum in a different way - talking about the produc- tion process, the impact of tropical aging, the terroir," says Andrew Floor, vice president of marketing for dark spirits at Campari America. The company's port- folio includes venerable brands Appleton Estates, Wray & Nephew and Coruba. GROWING IN THE RIGHT DIRECTION Compared to other spirits segments, rum's expansion has been less than ro- bust; however, it seems the category is moving in the right direction. "Although rum consumption has been relatively fl at over the past year, it continues to be the second-largest spirit category, behind only vodka, so the overall outlook is quite positive for brands large and small," says Bren- dan Lynch, senior director of rum and cordials at Beam Suntory. Mid-sized players, like Cruzan, expect continued notable growth, he adds. According to the Distilled Spirits Council (DISCUS), the rum category overall was down 1.5% in volume last year at 25 million 9-liter cases, while revenues were nearly fl at at -0.8%, total- ing $2.4 billion. Signifi cantly, super-pre- mium rum grew gangbusters, nearly 10% by volume and 12% in revenues. Greg Cohen, VP of Corporate Com- munications at Patrón Spirits, is heartened by this evidence of premiumization. "We'll likely see a similar trend this year, with ul- tra-premium brands like Pyrat outpacing the category," he predicts. Patrón mar- kets the Pyrat Cask 1623 and Pyrat XO Reserve labels. Volume has consistently grown every year, says Cohen, as more trade and consumers discover the brand. BY THOMAS HENRY STRENK