Beverage Dynamics

Beverage Dynamics Sept-Oct 2015

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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Spiced & Flavored Rums www.beveragedynamics.com September/October 2015• Beverage Dynamics 55 Colorado; that's followed by Bacardi and Admiral Nelson. "Rum is selling well; most of the business is still Bacardi and Captain Morgan," says Jim Guzay, a manager at Minotti Wine & Spirits, with fi ve stores in the Cleveland, Ohio area; the retailer shelves all the spiced and fl avored rums together, separate from the straight and aged variants. "After you get past the Captain Morgan, Admi- ral Nelson, Sailor Jerry, the Bacardi flavors like Limon, Peach and Mango, some of the newer fl avors sell well," comments Michael Berkoff, president and CEO of BevMax International, a Connecti- cut-based group of nine retail stores that advertise together. "Rum sales pick up signifi cantly in the summer," notes Rick Smith, man- ager of Rum River Wine & Spirits in Ramsey, Minnesota. But, he adds, "Captain Morgan sells well year-round." RUM RUNNERS Why the interest in the spiced/fl avored segment? A number of factors are fueling interest in rum: affordability, an appeal to a key demographic and transitioning from other categories. "Spiced rum is an affordable luxury," Hafer says, noting Ad- miral Nelson's $12 price tag and Blackheart in the $16 range. "Overall, rum is reasonably priced," echoes retailer Guzay. It's the affordability that wards off any pretentiousness on the part of the consumer when they pick up a bottle of spiced or fl avored rum. "Rum is a drink that appeals to everyone and is free of much of the snobbery or exclusivity that often- times is associated with other spirit categories," notes Kleinman at Dia- geo. Spiced Rum, he adds, is a recruit- ment-driving and broadly appealing spirit similar to fl avored whiskey. LEADING BRANDS OF SPICED* RUM, 2013-2014 (Thousands 9-Liter Cases) 12/13 Brand Supplier 2013 2014 % Chg Captain Morgan Spiced Diageo 4,900 4,700 -4.1% Admiral Nelson's Spiced Heaven Hill Brands 770 780 1.3% Sailor Jerry William Grant & Sons 733 738 0.7% The Kraken Proximo Spirits 325 424 30.5% Bacardi Oakheart Bacardi USA 190 190 0.0% Calico Jack Spiced Beam Suntory 110 130 18.2% Captain Morgan Black Spiced Diageo 205 120 -41.5% Captain Morgan Silver Spiced Diageo 100 90 -10.0% Blackheart Spiced Heaven Hill Brands 65 75 15.4% Castillo Spiced Bacardi USA 65 65 0.0% Total Leading Spiced Rums 7,463 7,312 -2.0% (*) Estimates. For more information visit www.bevinfostore.com. "Rum is among the most inviting, unpretentious categories in spirits" — Josh Hayes, brand manager of Sailor Jerry

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