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.
Issue link: https://read.dmtmag.com/i/751263
30 Beverage Dynamics • November/December 2016 www.beveragedynamics.com STRONG FLAVORS "Overall the rum category is a little fl at, but the fl avored rum seg- ment is growing," says Daniel Clarke, brand director for Malibu Rum, Pernod Ricard's entrant in the fl avored arena. Clarke says that the brand is growing at around 2.5%-3%, and that is helping to fuel the overall growth of the segment. Indeed, of the top 10 leading rum brands, more than half are fl avored/spiced variants, according to the Handbook Advance from Beverage Information Group. Lead by Captain Morgan at the number two slot, other fl avor-centric brands in the lineup are Malibu, Admiral Nelson's, Sailor Jerry, The Kraken and Captain Morgan's Parrot Bay. "Flavored and spiced rums are setting themselves apart from the general rum category," says Hannah Venhoff, brand man- ager at Heaven Hill Distilleries. "That is where the growth is coming from." The company's Admiral Nelson's Rum is out- pacing the category at 4%. The high-proof Blackheart Rum has enjoyed double-digit growth since its launch in 2010 and is currently up 16%, Venhoff says. Spiced is far and away the most popular fl avor, she adds, with tropical fl avors, coconut and pineapple close behind. "Flavored rum continues to lead the market and is an im- portant part of the Cruzan brand," says Tim Carter, senior brand director, Mixables, at Beam Suntory. Cruzan's lineup includes 15 fl avor variants. On the spiced side are Cruzan 9 Spiced Rum and Calico Jack. The latter has a nautical-focused brand with a bit of a pirate feel, Carter says, and is Beam's biggest player overall in the spiced rum segment. SPICE SHINES Indeed, spice seems to be leading the fl avored segment in terms of new players, consumer interest and product innovation, espe- cially as craft producers start to play around with rum. "It's a vibrant time for this space and we're seeing that there is even greater potential for growth with spiced rum than there is with any other type on the market," says Dave Roberts Jr., head distiller at South Hollow Spirits, which launched Twenty Boat Spiced Rum in 2014. "Consumers who have previously only en- countered mass-produced spiced rums are now realizing that more premium offerings exist and they're open to experiment- ing with the category." Twenty Boat adds a chai tea blend to its botanical spice mix. This January, Destillería Serrallés in Puerto Rico will launch its fi rst spiced rum in the Don Q line. "The spiced rum segment is massive and we want to put a product in there that stays true to our DNA—aged and well-crafted, but a fun expression," says Roberto Serralles, vice president of business development. "Spiced is a traditional style of rum but there are so many different spices, fruits and botanicals that can be used to change up the recipe," says Luke Davidson, founder and head distiller of Maine Craft Distilling in Portland. Queequeg spiced rum is its best-selling spirit. Maine Craft Distilling is ramping up produc- tion as it prepares to enter three new markets in 2017. "Spiced rum will be the tip of our spear as we expand," Davidson says. RECENT EVOLUTION Overall, the fl avored segment seems to be going through a pe- The bright spot in the rum category these days is the vibrant fl a- vored segment, especially the spiced variants. The fl a- vored rum category is growing and evolving, almost as a separate entity from light and dark rum. New takes on traditional styles and key on-premise trends are helping to in- crease market share and drive sales.