Stateways

StateWays-July/August 2016

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 20 GETTING UP TO SPEED "Rum has momentum; it doesn't need to regain it. The premium aged category hasn't peaked yet," says Carlos Esquivel, CEO of Pilsa Rums, a Panamanian producer of Don Pancho Origenes, Cana Brava and Selvarey brands, among others. "Today, aged rum is the new player in the spirits scenario—and it has come to stay." "For rum to break out, the aged expressions need to step for- ward," opines John Eason, COO and executive vice president at Serralles USA, whose portfolio includes the Don Q brand. "Aged rums are creating the most buzz." Indeed, it seems that some rum drinkers are trading over and up from light to dark rums. (Light rum was covered in the last issue of Beverage Dynamics). "We have been seeing light rum fans cross over into new territory and become open to greater experimentation than in the past," observes Kevin Foster, senior brand manager for rum at Beam Suntory, whose portfolio includes Cruzan Rum. "It's thanks to a rising spirits/cocktail culture that has driven con- sumers to become more and more educated and interested in learning about the spirits that they drink." "Consumers are trading up to more aged, darker versions as their palates evolve," says Mauricio Bermudez, director of mar- keting for Bacardi Rums. "However, with the recent momentum behind brown spirits, some consumers are entering the category via aged/dark rums, instead of trading up from white rums." Esquivel at Pilsa Rums also sees rum drinkers graduating from light to dark as their palates mature. "The U.S. consumer is dis- covering aged premium rum as sippers. Aged rums are more appealing to the upscale customer, refl ecting a maturity of taste and experience and a better economic position." THE WHISKEY CONNECTION Perhaps the best way for dark rum to succeed in the U.S. market is to lure customers away from the whiskey category. It seems like a natural transition; dark rum and whiskey both obtain sim- ilar fl avor characteristics of caramel, vanilla and spice—as well as color—from extended aging in charred oak casks. Indeed, many dark rums have been resting in previously used whiskey barrels. Most players in the rum category see a natural crossover from the whiskey category as one avenue for increased growth. "A lot of the high-end rums have taste profi les that are similar to whisky, but are more approachable, like our Brugal 1888, which we call the rum for whisky lovers," says Amanda Paul-Garnier, brand manager at the Edrington Group. "Dark rums like this can't compete with whisky per se, because people that want to drink whisky are going to drink whisky, but they can appeal to people who are whisky-curious, but are looking for something more approachable." Adds Foster at B e a m S u n t o r y , "Whiskey and Bour- bon afi cionados con- tinue to look for other spirits with complex fl avor profi les similar to the ones they know and enjoy, and are certainly among those choosing our premium aged rums like Cruzan Single Barrel and Estate Diamond Dark." "Dark rum can compete with whiskey by exploiting its acces- sibility and less-challenging profi le," says Bermudez at Bacardi. "Currently, rum is already competing much more directly with whiskey with the rise of the premium and sipping rum segments. These rum segments serve the robust sipping experiences that many whiskey drinkers enjoy, but also offer the incredible versa- tility and diversity of rum profi les." One area where rum has a signifi cant advantage over most DARK RUM | CATEGORY UPDATE going to drink whisky, but they can appeal to people who are whisky-curious, but are looking for something and enjoy, and are certainly among those choosing our premium aged rums like Cruzan READ ON FOR MORE ON HOW TIME, WOOD AND CLIMATE AFFECT THE RUM AGING PROCESS.

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