MoR Mobile β


New Users Please read the thread in the Introductions Section.
Rum Lovers @ the Ministry of Rum

13 years ago in 2006, Maison Leblon was established in Brazil.

Search by Label Name
Other Searches
Ministry of Rum Blog
Rum Events
Member Map
Rum Producers
Retail Index
Bars & Restaurants
Distributor Index
Rum Importer Index
Articles
Interviews
Frequently Asked Rum Questions
Rum 101
Test your Rum IQ
Rum Glossary
Rum Recipes
Ministry of Rum Giftshop
Trade Registry

Go Back   Rum Lovers @ the Ministry of Rum > Rum in the Media > Rum News
Forgot Password?
Register FAQ Members List Unregistered Posts Mark Forums Read

Rum News

Links to articles about our favorite spirit


Reply
 
    Thread Tools Display Modes
Old 02-01-2008, 09:45 AM   #1
Edward Hamilton
Founder
 
Edward Hamilton's Avatar
 
Join Date: Mar 2007
Location: Sailboat in the Caribbean and hotels.
Posts: 4,789
Default Yo Ho Ho and A Bottle of Pricey Rum

By Christina Cheddar Berk
News Editor
Source: CNBC.com
31 Jan 2008 | 03:03 PM ET
Perhaps, this time will be different.
For several years, rum distillers have been trying to ditch the product's image--which is so closely linked to pirates, palm trees, and cheap daiquiri drinks--hoping to capture their fair share of sales to cocktail-swilling trendsetters.
The goal is to join vodka, bourbon, and tequila in creating a tier of "superpremium" brands by winning the attention of the fickle and fashionable, and convincing them--and those who aspire to be them--to trade up to pricier brands.
There are some small signs that the effort may be starting to pay off.
According to statistics compiled by the Distilled Spirits Council of the United States (DISCUS), the fastest-growing segment of the $2.1 billion rum category is the small sliver that accounts for its superpremium brands. Loosely speaking, rums in this group are priced above $25 for a 750 millileter bottle. In 2007, this segment saw its volume grow by 43% to 220,000 cases.
Granted the category's growth is skewed somewhat by its small size. The double-digit pace equated to an additional $29 million in revenue last year, but if the trend continues it will be a notable development for the rum category.
Although vodka, which tops rum as the largest spirits category, was responsible for about 28.5% of the industry's volume last year, it contributed nearly 31% of its revenue growth, according to DISCUS. The reason is that the lion's share of vodka's growth comes from its superpremium brands.
The growth of superpremium rum brands appears to be rooted in the same trends that are helping to grow overall spirits sales. These factors include a growing interest in cocktails, consumers' increasingly sophisticated palate and their desire to experiment with new flavors. The last trend is especially pronounced among adults under the age of 30, or the so-called millennial generation.
But there are other factors that are also helping. One example has been events where cigars are paired with high-quality, aged sipping rums such as Ron Zacapa Centenario, Appleton Estate Extra, and Mount Gay Extra Old Rum.
Another is an increased knowledge about the history of the cocktail and a desire to try more traditional drinks. With its long history in American cocktails, rum is likely to benefit.
"I think these microtrends will influence the bigger picture," said Peter Wijk, a brand director at Absolut, a subsidiary of Sweden's Vin & Sprit. "They are the embryos that educate mixologists, bartenders, and consumers."
Some brands, including Tommy Bahama and 10 Cane, are pushing hard for a fashionable, trendy image as they work to move the rum category up the price scale. In doing so, these brands are competing directly with superpremium vodka brands to win consumers.
And it may be a good time to make this attempt. Despite continued healthy growth in the vodka category, there are some industry watchers who say they detect early signs of "vodka fatigue."
Tommy Bahama is a brand created by Sidney Frank Importing, of Grey Goose vodka fame, while 10Cane is marketed by LVMH Moet Hennessy.
Absolut, which is well known for its vodka brand, became a bigger player in the rum category with its acquisition of Cruzan International about a year and a half ago. The company is examining the packaging, price and positioning of its Cruzan Single Barrel Estate Rum in order to make sure it is taking advantage of the emerging trends toward pricier rums, Wijk said. He expects new packaging to be introduced later this year to help distinguish it as a superpremium brand.
One of the challenges that has faced the rum industry in pushing for higher prices is that for so long it has been dominated by one player, Bacardi, a privately held Bermuda-based company with a large rum factory in Puerto Rico.
Bacardi has fueled its own growth by rolling out flavored rum products aimed at the mass market. Although the company has higher-priced products such as Bacardi 8, it doesn't appear that concerned about pushing the price envelope.
"It has been hard to break through with Bacardi being such a dominant player," Wijk said.
Another challenge is that the rest of the category has largely developed as a cottage industry, with products made by smaller companies that lack the money and marketing might to break into the competitive U.S. market. Still, with consumers become more daring and seeking out brands that are well-made, they are going to find there are plenty of well-aged, well-blended rums to try, according David Wondrich, a mixologist and author of "Imbibe!"
"Those are starting to be discovered," he said.
According to Wondrich, there isn't any reason that should prevent a well-made rum from commanding as much attention as other types of superpremium spirits, including vodka.
Still, the trend is still emerging and it may still take some time before it really gains momentum, according to Wijk.
He cautioned against expecting a sudden "boom" to happen because with rum so much is about taste and it will take some time for the products to gain a loyal following. This is different from vodka, which can be hard to distinguish by taste, and may have more to gain from a fancy bottle or a captivating backstory.
"With vodka, whether we like it or not, it's more about the badge," he said.
Edward Hamilton is offline   Reply With Quote
Old 02-01-2008, 10:27 AM   #2
Tiare
Senior Member
 
Tiare's Avatar
 
Join Date: Nov 2007
Location: Stockholm, Sweden
Posts: 1,901
Default

Interesting reading Ed.
When it comes to the Swedish Vin & Sprit, i have heard rumours that they may be sold to Bacardi...which would probably mean that there`s a risk that the small pure Swedish spirits like the Glogg and the Snapps which are only sold in Sweden and deep rooted in the culture here will disappear.There are some Gloggs that are only sold during Christmas, one new flavor each year to never be sold again and they are so poplular here that they are more or less finished before they are in the shop, and they are always sold in a small quantity. But this is not about rum...sorry..
__________________
A Mai Tai a day.....Mai Tai roa ae!

A Mountain of Crushed Ice
Tiare is offline   Reply With Quote
Old 02-01-2008, 11:03 AM   #3
The Scribe
Senior Member
 
Join Date: Dec 2007
Location: The Bottle
Posts: 191
Default

Baccardi is a pretty big player already. I believe they own a significant chunk of Diageo. I also heard some rumors about an acquisition of Absolut. I'd be more worried about what will happen to some of the rum brands like Cruzan.

Cheers. - S
The Scribe is offline   Reply With Quote
Old 02-01-2008, 08:38 PM   #4
RumBarPhilly
Senior Member
 
RumBarPhilly's Avatar
 
Join Date: Aug 2007
Location: Sicklerville, NJ
Posts: 743
Default

Quote:
Originally Posted by The Scribe View Post
Baccardi is a pretty big player already. I believe they own a significant chunk of Diageo. I also heard some rumors about an acquisition of Absolut. I'd be more worried about what will happen to some of the rum brands like Cruzan.

Cheers. - S
As far as I know, Bacardi has no part with Diageo. Bacardi does however own Grey Goose, which is pretty "small" time haha.

I dont think Diageo would buy Absolut, since they currently own Smirnoff, that would be product cannibalization.
__________________
--Adam Kanter
Owner
Rum Bar Lounge & Restaurant
Philadelphia, PA
http://www.Rum-Bar.com
RumBarPhilly is offline   Reply With Quote
Old 02-01-2008, 08:40 PM   #5
RumBarPhilly
Senior Member
 
RumBarPhilly's Avatar
 
Join Date: Aug 2007
Location: Sicklerville, NJ
Posts: 743
Default

Vodka... fermented on Monday... Distilled on Tuesday... Bottled on Wednesday... Shipped on Thursday... Purchased on Friday... Drunk on saturday...

Thats what I love about rum. Even the cheapest rum takes time to make!
__________________
--Adam Kanter
Owner
Rum Bar Lounge & Restaurant
Philadelphia, PA
http://www.Rum-Bar.com
RumBarPhilly is offline   Reply With Quote
Reply

  Rum Lovers @ the Ministry of Rum > Rum in the Media > Rum News

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Best $18 - $25 bottle of rum you've had? primate77 Rum questions/discussions 78 01-03-2009 12:31 PM
First Bottle of Pampero tym2relax Rum & Cigars 22 05-13-2008 12:43 PM
First Legal Bottle The Scribe Rum questions/discussions 8 05-07-2008 05:39 PM
Help me choose my next bottle! Schock Therapy Rum questions/discussions 28 04-15-2008 02:29 AM
And a Bottle of Rum Edward Hamilton The Book Shelf 9 01-10-2008 07:12 PM


All times are GMT -3. The time now is 10:19 AM.


Rum Chat
Recent Posts
Early Spring Special Offers at Waitrose
posted by Berbician
Hello from Leuven, Belgium
posted by Berbician
Saying hello to all
posted by Berbician
Thank you for taking the time to register
posted by Wineack
New Member
posted by Berbician
Mount Gay Black Barrel
posted by Berbician
New Tiki Bar/Restaurant in North Alabama looking for help sourcing rum
posted by Phat Sammy's
Last month this site was viewed more than 750,000 times by the best people in the world - those who appreciate rum.
Ministry of Rum on
facebook link
Follow @Ed_Hamilton on

vB ver 3.8.6 Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Content on this forum copyright 1995 - 2015 Ministry of Rum.