BROWN SPIRITS: RUM Rum reaches higher ground in premium journey
Global rum forecasts indicate flat growth prospects in the near future, but travel retail suppliers are contradicting that vision, as Luke Barras-Hill reports.
A
ccording to insight from Orbis Research, the global rum market is expected to
decline at a CAGR of 0.5% to 2021, with India, the US and Philippines set to record shipment falls. More broadly, it estimates deteriorations in high-volume, low-value markets. However, two of its largest players
in Cuba and the Dominican Republic are projected to experience stronger fortunes during the forecast period. This projection appears to
corroborate findings released last year in joint research conducted by The IWSR and Just Drinks, which pointed towards a decline of almost 3.7m cases during the reported forecast period (2016-2021). Notwithstanding this, The IWSR and Just Drinks’ research note the super- and ultra-premium segments ‘are still expanding at a healthy rate’. Bacardi’s $
51.bn deal to acquire
ultra-premium tequila maker Patrón Spirits International and its illustrious Patrón brand got people talking earlier this year, but as Bacardi outlines in an exclusive interview with TRBusiness this month (see page 143), the immediate priority is new innovation. This is playing out notably via
Santa Teresa 1796, which has expanded distribution to a raft of European DF&TR locations.
The clear untapped potential for rum is a sentiment relayed to TRBusiness on countless occasions by suppliers. Patrón itself lays claim to Pyrat Rum, which grew by 9% last year. “We want to put a lot of marketing
support behind it, but it continues to grow,” said a spokesperson.” Beginning its travel retail journey in
2016, Venezuelan brand Diplomático Rum tells TRBusiness that it has
experienced success traditionally in Europe, particularly France on the domestic side, but it is growing in DF&TR. Lagardère Travel Retail remains its
biggest account, with strong visibility in markets including the Czech Republic, according to Diplomático Duty Free Marketing Manager Mario Navarro. Airports remain the core focus
for the family-owned premium rum brand, but other channels such as cruise are targets too, with Navarro revealing a deal with Miami-based Starboard Cruises. “We are talking about expansion
this year – we are not just talking about opening, if we do, we want to have good space, visibility and invest behind the brand,” he says.
Female appeal One marked trend seen by the rum category in general is a rise
Wild Tiger roars in to new regions
Premium Indian rum brand Wild Tiger is reporting positive reaction to new skus across regions, including North America. It has picked up some notable
recent listings at Aer Rianta International’s (ARI) shops in Barbados, Auckland and Muscat, and with Lagardère Travel Retail in Paris and Auckland. Other business with Viking
Line, DFS Singapore and King Power Thailand is reportedly in the ‘pipeline’, the brand told TRBusiness earlier this year.
MAY 2018
in popularity among female consumers, which Navarro confirms is growing at Diplomático. “Our targets are men and women,
but yes – in domestic markets women’s consumption is growing,” he confirms. “We can reach males but also women and in duty free when we do tastings in airports, we can see this. “It is also a question of generations.
My father was drinking whisky and malt, I wanted to differentiate from him and started drinking rums. I think there is a trend, particularly in Europe, where younger generations want to differentiate from their parents and start to drink rum. “Rum became really cool. Now
many people in France, Germany and Scandinavia – very strong blended whisky markets – are moving to premium rums. Reflecting on rum’s wider
brand appeal as a product with real versatility in its craft and mixing propensity, the
Patron
spokesperson added: “People shifting into the (rum) segment are a lot younger these days.” «
New one-litre variants of Special Reserve Dark Rum and Indian Spiced Rum play on rum’s playful trend towards novelty and excitement.
“I think there is trend, particularly in Europe, where younger generations want to differentiate from their parents and start to drink rum.”
Mario Navarro, Duty Free Marketing Manager, Diplomático Rum
TRBUSINESS 145
Above: Pyrat shipped approximately 44,000 cases globally in domestic and duty free in 2017.
Below: Pyrat Rum XO Reserve.
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