Stateways

StateWays Sept/Oct 2015

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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StateWays ■ www.stateways.com ■ September/October 2015 38 SPICED & FLAVORED RUM "We have made a big play in the spiced rum category the last couple of years, and have seen a tremendous amount of success there." Retailers report their best-selling rums are spiced or fl a- vored. "Our most popular rum is Captain Morgan Spiced Rum," affi rms Alex Vaughn, liquor associate at Liquor Mart in Boulder, 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 Minot- ti 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, Admiral Nelson, Sailor Jerry, the Bacardi fl avors like Limon, Peach and Mango, some of the newer fl avors sell well," com- ments Michael Berkoff, president and CEO of BevMax Inter- national, a Connecticut-based group of nine retail stores that advertise together. "Rum sales pick up signifi cantly in the summer," notes Rick Smith, manager 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 num- ber 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, not- 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.

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