What ’ s Next for Rum ?
by KYLE SWARTZ
Is there a better deal in premium spirits right now than rum ? Bourbon ’ s popularity has led to price spikes across that category , while tequila ’ s recent rise has had a similar effect on the cost of agave spirits . Meanwhile , a well-aged rum is unlikely to cause sticker shock .
Which is good news for the category . Today ’ s customers want premium products at a value price . What began years ago as an increased interest in sophisticated wines , craft beer and American whiskey has now blossomed into a common consumer sentiment towards most alcohol categories .
“ For the most part , today we ’ re talking about a premium aged spirits consumer ,” says John Meisler , vice president of sales for Serralles USA , which includes Don Q . “ Wine and craft beer encouraged people to play inside a category . Consumers don ’ t just drink one thing anymore , they drink everything .”
That has encouraged trial across categories , Meisler adds . “ If someone is drinking Woodford Reserve , Rémy Martin , Blaton ’ s or The Macallan , then they ’ re going to try other premium spirits . Consumers today are premiumization drinkers . It ’ s a change of mindset .” This turn has caught the attention of most if not all rum producers . “ The rum category is continuing to trend towards premiumization , where consumers are increasingly valuing craft and aged rums over traditional options ,” says Antoine Couvreur , managing director , Mount Gay Distilleries .
“ Rum is experiencing heightened consumer awareness these days , with brown spirits enthusiasts recognizing that there is so much more depth to rum than the cliché frozen drink on vacation ,” Couvreur adds . “ Sipping represents today 18 % of rum consumption , a drastic shift .” Still , there ’ s no denying that this is a story well told by now . “ Rum has been on the cusp of being the next big thing and getting over the hump every one to two years , on average , for the last 15 years ,” says Mark Mc- Laughlin , cofounder of Old Line Spirits , a Baltimore distillery whose portfolio includes a line of imported Caribbean rums . “ But premiumization is a real thing .
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Rums have high quality , and more people are realizing that just like bourbon and single malt , these rums can be just as amazing , every bit as complex and delicious , as any aged spirit .”
AGED AND FINISHED RUMS
These consumer realizations and preferences for premiumization have resulted in a wave of innovation in rum , especially in barrel aging .
“ It ’ s noteworthy that while the rum category was traditionally dominated by white , gold and flavored variants , the market share is now increasingly occupied by aged products ,” says Ricardo March , founder of Bacan Guaro , an aguardiente made from sugarcane .
“ Distilleries are increasingly exploring different barrel types and finishes , with cherry and port barrels leading the way in innovation ,” he adds . “ Unlike the past , where most rum producers relied on second-hand bourbon barrels , there ’ s now a significant shift towards using French barriques that previously held wines like Sauternes , port or cherry casks , resulting in remarkable flavor profiles .”
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The rum category is continuing to trend towards premiumization , where consumers are increasingly valuing craft and aged rums over traditional options .
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– Antoine Couvreur , managing director , Mount Gay Distilleries .
A pioneer in the aging and finishing space is Don Q .
“ Don Q Gran Añejo came out in ’ 95 ,” points out Meisler . “ We didn ’ t see many super-premium aged rums back then . We were an early adapter in finishing as well , with double casks and double woods . Then in 2015 , we www . beveragedynamics . com Summer 2024 • Beverage Dynamics 31