BROWN SPIRITS: RUM


dubious that the rum category can surpass growth rates of certain whiskies and gin in travel retail. “The rum category seems to have


to continue the momentum in our biggest and leading markets, America and Europe, and to continue growing in the super-premium segment. “In global travel retail, the main


opportunity we see is to utilise the premium environment of key airports to showcase our Brugal brand, with a focus on 1888.” Gentile concurs that dark


rums are benefitting from an uptick in popularity with consumers in general. “White rum has been suffering


and dark rum has been on the rise, in particular super-premium and ultra-premium dark rum – which are both showing double-digit category growth. The trend continued through 2019 and for us this is well received as our ambition is to become a leading super-premium brand with Brugal.” Gentile believes that it is


premiumisation and dark rums on the whole which will drive sales growth for the rum category in duty free; along with those brands who boast a strong heritage and authenticity.


‘Everyday brands’ losing out To this effect, he expects that those brands who continue investing in packaging and innovating on higher variants with premium pricing, will come out on top. He cited, ‘better and improved retail space/ environment in airports’ as another factor which will help to boost sales of rum in travel retail. Halewood Wines & Spirits also


believes that aged, higher-end, artisanal rums with heritage and a strong back story will drive growth in travel retail. “The everyday brands have lost


volume and value,” says Simon Roffe, Managing Director Global Travel Retail, who reiterates that premium and dark rums are outpacing white rum in general. He is, however,


MARCH 2020


a cyclical history. Always popular in the on-trade market, it is slated to be the next ‘gin’ with rapid increase in popularity, but we have yet to see convincing evidence of that. Our focus will continue to be on premium flavoured rums in the belief that they have great potential with discerning consumers.” Halewood is currently in the


process of introducing Dead Man’s Fingers spiced and flavoured rums to the duty free market. So far the brand has been very well received, securing notable early listings with Lagardère in the UK as well as a number of airline partners, including British Airways and Virgin Atlantic.


Turbulence ahead In 2020 Halewood will launch the full Dead Man’s Fingers spiced and flavoured rum portfolio in duty free & travel retail, including a new Pineapple variant which joins the Spiced, Coffee, Coconut and Hemp flavours. While Roffe is excited to see the


development of the unconventional rum brand over the course of the next year, he is monitoring the spread of the Covid-19 virus and its impact to the business as well as the travel industry as a whole. “The Halewood travel retail


growth story to date has been set mostly in the European market but recently we have secured new listings and witnessed strong growth in South East Asia. “The impact of travel restrictions


and the reduction in passenger numbers in the region caused by this dreadful outbreak are certainly challenging our retail partners in locations such as Singapore, Thailand and Hong Kong. We will of course continue to invest in the region in promotions and further launches of our portfolio across the Asia Pacific region.” Gentile has similar sentiments


on the impact of coronavirus. “The current travel bans and flight cancellations at key airport hubs is seriously affecting the global travel retail business as a whole.


“Provided the outbreak of Covid-19 does not last for a long time, there should not be a significant long-term impact on the travel retail liquor category. Once travel restrictions have been lifted, sales should recover in the markets affected within in few months as was the case following the outbreak of SARS in 2003.”


Sandra Newman, Travel Retail Research Director, IWSR Drinks Market Analysis


“Asia is feeling the heaviest impact and in America we are feeling it more on the west coast where hubs are concentrated with traffic to and from Asia.” In response to the outbreak,


Edrington is assessing the different scenarios that could unfold in Q2, but these are dependent on when the peak of the virus will hit. “We are also working closely with


our customers and trying to support them with brand activations to keep sales up,” adds Gentile. IWSR’s Newman is optimistic that


the impacts will not be significant in the long-term (speaking in February). “Provided the outbreak of Covid-19 does not last for a long time, there should not be a significant long-term impact on the travel retail liquor category. Once travel restrictions have been lifted, sales should recover in the markets affected within in few months as was the case following the outbreak of SARS in 2003.” «


Above Left: Juan Gentile Edrington Brugal.


Halewood Wines & Spirits will launch its new pineapple flavoured rum in 2020.


TRBUSINESS 59


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