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 22 whiskey is in the price-value equation. "Aged rum is a great value," says Draga Culic, brand director at Niche Imports, whose portfolio includes Mezan Rum. "Whiskey price points are much higher than rum for products of comparable age and quality." BAR TRANSLATIONS A number of on-premise trends are translating into off-premise sales. Bars are the gateway for virtually all spirits categories, in- troducing consumers to new categories and products via cock- tails, shots and fl ights. There is less risk to trying something new at a bar compared to splurging on a 750-ml. bottle at retail. Naturally, that includes aged premium rums that are generally more expensive than light rum. "An exciting movement that is driving awareness of the category is the increase of high-end rum bars, which continue to pop up across the county," notes Foster at Beam Suntory. "Bartenders are crafting variations of tiki and rum classic cocktails," says Eason at Don Q. "Many top restaurants now in- clude a premium rum section in their menus just as they would other spirit categories. Those consumers are enjoying a great rum at home just as they would a Bourbon or single malt neat." "We're seeing the emergence of bars where rum is the star," says Moll at Campari America. "There's an increasing number of on-premise accounts where bartenders are stocking their back bar with dozens of premium rums like Appleton Estate. These bartenders are introducing consumers to the vast world of rum, and the consumers then look for these brands in stores so they are available in their homes for use in classic cocktails or as a sipping spirit." The off-premise represents 80% of total rum business for Campari America. "However, for our higher marks (specifi - cally Appleton Estate Reserve Blend and Appleton Reserve Rare Blend 12 year old), on-premise plays a larger role as bartenders are increasingly interested in premium rums," Moll says. "Our growth is strongest on-premise," says Foster about Cru- zan. "The past several years have seen signifi cant growth for the brand, as well as share gains within the category." SPLIT MARKETING Since dark and light rums are virtually different categories, often aimed at different consumer demographics, some brands target marketing accordingly. "There are differences in the [consumption] occasion, so our activation is targeted depending on what offerings we are adver- tising," says Bermudez at Bacardi. "We focus on communicating more of the product intrinsics when we market our darker rums; while we focus product communication around mixability when we market our light portfolio." Cruzan also splits the difference, according to Foster. The light and fl avored end of its rum portfolio offers recipes via social media to emphasize mixability. "Versus showcasing our premium aged sipping rums in a rocks glass with a large ice cube," he adds The future for dark rums is bright, say industry players, antic- ipating growth in what is yet still a niche. "While the base is still very small, we see increased interest and double-digit sales increases in high-end aged rums," Terlato says, "especially at the super-premium level." • THOMAS HENRY STRENK is a Brooklyn-based free- lance writer with over 20 years experience covering the beverage and restaurant industries. In his small apartment-turned-alchemist-den, he homebrews beer kom- bucha, and concocts his own bitters and infusions. DARK RUM | CATEGORY UPDATE "BARTENDERS ARE CRAFTING VARIATIONS OF TIKI AND RUM CLASSIC COCKTAILS." — JOHN EASON, COO AND EXECUTIVE VICE PRESIDENT AT SERRALLES USA

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