Beverage Dynamics Summer 2024 | Page 33

Where the consumer is going these days , I don ’ t think rum has much of a choice .”

The same customers who care deeply about quality and transparency also typically reward brands that support sustainability . It ’ s all part of a similar , rising , hyper-educated , socially conscious consumer demographic .

Accordingly , at Mount Gay , the brand has “ developed the most sustainable packaging in the high-end rum offering ,” says Couvreur , “ with a light bottle made with 70 % -plus recycled glass , a mono-material cork and gift box , low level of ink on labels , and yet all the relevant information available at consumers ’ fingertips thanks to a QR code on the pack .”

He , too , believes in the growing importance of provenance in rum .

“ We can also mention a trend that appeared in the past few years in other categories , from single malt Scotch whiskies to tequila or Cognac : terroir , provenance , soil , etc .,” Couvreur says . “ The launch of [ Mount Gay ] Single Estate Series in 2023 was , even if not planned as such , at the start of this trend in the rum category .” It ’ s a trend recognized across the industry . " More than ever , we ’ re seeing that consumers are interested in learning about and drinking spirits that have a unique provenance , deep history or cultural significance ,” says Batchelor of Campari America . " Rum , particularly when looking at legacy distillers like Appleton Estate , offers all three — and that ability to satisfy consumer curiosity , coupled with the ongoing energy around-super premium spirits across the industry , has contributed to rum ’ s growth .”

The movement in rum towards better , local , all-natural ingredients — along with premiumization — also plays into the category ’ s fast-growing flavored segment .

“ Innovation is very important in this category , especially in terms of flavors ,” Shaw says . “ That ’ s why we developed our Copalli Cacao Rum , infused with roasted organic cacao nibs that we grow on our distillery and lodge property in Belize . As a matter of fact , we grow so many interesting local fruits and crops at our farm that we ’ re continually experimenting with how to use those ingredients in future releases of our rum .”

THE FUTURE FOR RUM

What ’ s next for the category ? As always , forecasting the future is difficult if not impossible .

“ Maybe rum stays in the realm as it is now , and we do as much volume as Cognac or Armagnac ,” says McLaughlin , of Old Line Spirits . “ But a lot of people in bourbon are getting priced out . They ’ re thinking , ‘ Where can I still get the quality and the value ?’ Rum delivers that .”

The rum nerds do exist , he adds . “ But when you ’ re dealing as much as we are with all the whiskey clubs [ Old Line primarily produces American single malt ], at the end of the day , you realize these people are about all high-quality spirits . These guys have dug deep into the categories they ’ re familiar with , tequila and whiskey , and now they ’ re looking elsewhere . There ’ s momentum starting to build .”

With that in mind , and the high prices of bourbon and tequila compared with rum , McLaughlin wonders whether there ’ s a parallel between rum today and whiskey a decade or so ago . A time that we all recall , perhaps wistfully , when bottles of Pappy and Buffalo Trace Antique Collection sat on shelves at reasonable prices , not yet affected by hype . How easy and comically affordable it would have been then to load up on BTAC and other modern-day unicorns .

Will we one day think similarly about all the premium rums that are priced reasonably right now ?

“ Ten years from now ,” McLaughlin says , “ people may be looking back and kicking themselves for not getting these

Leading Brands of Rum ( 000 9-Liter cases )

Bacardi Domestic Premium $ 10- $ 15.99 Bacardi USA 6,632 6,432 -3.0 % Captain Morgan ( excludes Parrot Bay ) Domestic Premium $ 10- $ 15.99 Diageo North America 5,344 5,078 -5.0 % Malibu Imported Premium $ 10- $ 15.99 Pernod Ricard USA 2,740 2,607 -4.9 % Admiral Nelson Domestic Economy <$ 10 Heaven Hill Brands 820 787 -4.0 % Cruzan Rum Domestic Premium $ 10- $ 15.99 Beam Suntory 721 681 -5.5 % Sailor Jerry Domestic Premium $ 10- $ 15.99 William Grant & Sons 584 560 -4.1 % The Kraken Imported Premium $ 10- $ 15.99 Proximo Spirits 480 470 -2.1 % Castillo Domestic Economy <$ 10 Bacardi USA 358 336 -6.1 % Don Q Domestic Premium $ 10- $ 15.99 Serralles USA 280 276 -1.4 % Appleton Imported Premium $ 10- $ 15.99 Campari America 246 254 3.3 % Top 10 Leading Brands 18,205 17,481 -4.0 % Total Domestic Rum 17,367 16,666 -4.0 % Total Imported Rum 5,915 5,772 -2.4 % Total Rum 23,282 22,438 -3.6 %

( p ) Preliminary : The Industry Overview provides preliminary prior year-end data projections based on data available prior to publication . All figures are early preliminary Beverage Information Group estimates of US volume consumption and are subject to revision .

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