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 | July/August 2016 19 StateWays | www.stateways.com | July/August 2016 ince Colonial days, rum has been a pop- ular quaff in North America; however, it could be argued that aged rum is still a rela- tively new category for U.S. consumers. For decades, the premium aged segment has been largely eclipsed by the prevalence of light, spiced and fl avored rums—on the retail shelf, in cocktails and in the spotlight of marketing campaigns. When consumers think rum, they still think light, an impression driven by its ubiquity in Daiquiris, Mojitos and tiki drinks. That attitude toward rum, industry observers say, is changing. More aged, premium products are showing up on re- tail shelves and backbars. And consumers, particularly those ever-questing Millenni- als who can recite chapter and verse on whiskey, are exploring other barrel-ma- tured categories. This bodes well for the future of the premium aged segment. "The premium rum category is in its infancy," says Christine Moll, cate- gory marketing director – rum, Campari America, whose portfolio includes the Appleton Estate and J. Wray brands. "For many decades, the rum category was dominated by giants that positioned rum as a standard, immature spirit specifi cally with the rise of spiced rum in the 1990s and early 2000s." Indeed, the category seems divided in terms of sales and marketing. "When we look at the rum market, we separate the dark aged sipping rums from the white rum used in blended drinks," notes William A. Terlato, CEO of TD Artisan Spirits, whose portfolio includes Don Pancho Origenes. According to the Distilled Spirits Council (DISCUS), total revenues for rum were down 2.0% in 2015, while super-pre- mium was up 2.8%--a segment dominated by dark, aged rums. However, contrast that with 2013, when revenues were up a healthy 3.3%. Since then, rum's share of the spirits category has dropped from 11.8% to 11.4%, according to the Bev- erage Information Group. How can rum regain its momentum in the U.S. market? LIGHT LIGHT in the DARK by THOMAS HENRY STRENK DARK RUMS ARE A BRIGHT SPOT IN THE CATEGORY. DARK RUM | CATEGORY UPDATE PHOTO COURTESY OF ISTOCK, DANIELAZOCAR