44 by KYLE SWARTZ
Consumer trends in the alcohol industry have shifted significantly in recent years and the rum category has evolved accordingly . The Covid-19 crisis has even more people focused on health and wellness , while the influence of the Millennial and Gen-Z generations has only grown .
Meanwhile , several trends that had flourished pre-pandemic have picked up steam . Namely : Premiumization , barrel finishes and canned cocktails .
Which is all to say that many factors are in play as rum companies position their products for 2023 and beyond .
PREMIUMIZATION REMAINS KEY Before Covid ever reached our shores , and consumers began splurging on their home bars , peopsle had already begun eyeing retailers ’ top shelves . Nothing here has changed .
“ We first launched our premium rum portfolio in 2018 , and each year , the consumer appetite for more premium , aged spirits has grown ,” says Lisa Pfenning , VP Americas , Bacardí Rum Portfolio . “ In fact , as a result of the growing consumer interest , we launched our limited-edition Cask Series in 2021 . We first started with Bacardí Reserva Ocho Sherry Cask , then Bacardí Reserva Ocho Rye Cask , and have a new iteration coming later this summer .”
“ We ’ re seeing the trend of premiumization take off in bars and restaurants as well ,” she adds , “ with 72 % of bartenders reporting the most premiumization within tequila , followed by single malts , mezcal and aged rum , mostly driven by the surging popularity of rum-based cocktails .”
As with other spirits categories , premiumization in rum means more creative barrel finishes , giving consumers a wider range of innovative flavors to explore through .
“ Within sipping rums , we ’ re seeing a big lean towards innovative cask finishes ,” says Antoine Couvreur , Managing Director , Mount Gay . “ At Mount Gay , we ’ ve been exploring this with our Master Blender Collection , where Master Blender Trudiann Branker has the opportunity to discover and push the boundaries of rum innovation . Most recently she used Madeira wine casks , and this year , she ’ ll release a well-aged rum in a different cask . Here , we ’ re seeing interest in exploring taste profiles and nuances , much like we ’ re familiar with in the single-malt world .”
Agreeing with him is John Meisler , Vice President Sales , Serralles USA , producer of Don Q rum .
“ Industry analysts expect as much as 15 % compound annual growth rates in the super and ultra-premium rum categories ($ 30- $ 100 ),” Meisler says . “ More growth is expected as well in the $ 250 rum category , while the overall rum category declines are driven by the value and standard segments .”
“ Scotch and Bourbon producers . . . have created an audience for unique barrel finishes ,” he adds . “ These tend to bring new , curious consumers to the brands / categories , and allow rum makers to showcase their rums . For us , they are created in
StateWays | www . stateways . com | Summer 2023