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A U T H E N T I C
C A R I B B E A N
R U M
Page 02-03
Rum: A World Tour
Page 04-05
A Global Spirit
Page 06-07 Spain
Page 08 Germany
Page 09 France
Page 10
Page 11 Italy
Page 12 Netherlands
Page 13
Page 14 Denmark
Page 15
Overview of Other Markets
Page 16-17
Rum: Insight and Opinion
Page 18-19
Rum and The Caribbean
Page 20-21
A Golden Age for Rum
Page 22-23
The Marque of Authenticity
Page 24-25
A Question of Age
Page 26-27
Authentic Caribbean Rum’s Global Journey
Page 28-33
Rum’s Golden Future
Page 34-35
The Decade of Rum
Page 36 Afterword
United Kingdom
Belgium and Luxembourg
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Rum:
The following analyses the global rum market over the last decade. We highlight country-bycountry data, market trends and the performance of individual types of rum.
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A U T H E N T I C
C A R I B B E A N
R U M
Sugar cane is grown in tropical regions across the globe, so it is not surprising that rum has a following in all continents.
Its breadth of production generates a wide variety of definitions, but for the purpose of this review we’ll take an
“if-they-call-it-rum, we’ll-call-it-rum” approach.
THE OVERALL PICTURE
Despite the widely reported economic problems in recent years, the first decade of this century has seen strong growth across many spirits categories. In fact, rum enjoyed a growth rate of +40%, ahead of one of the most talked about categories of the decade – vodka.
Global Growth Of Individual Spirits
IWSR – 000s 9 lt cases 2000
2010
% change
Rum
101,757 142,291 40%
Bitters / Spirit Aperitifs 22,479
28,509
27%
Vodka 395,668
495,218
25%
Shochu / Soju 189,184
236,440
25%
Cognac / Armagnac 8,577
10,315
20%
Fruit Eaux de Vie 20,382
24,081
18%
Liqueurs
72,862 85,119 17%
Scotch Whisky
74,233 84,330 14%
US Whiskey
26,378 29,576 12%
20,672 19,995 -3%
Canadian Whisky
Cane
131,903 115,451 -12%
Gin / Genever 60,545
50,873
-16%
Aniseed
34,856 28,408 -18%
Aquavit
1,502 1,070 -29%
Korn / Schnapps 9,496
6,438
-32%
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A U T H E N T I C
C A R I B B E A N
R U M
RUM’S GLOBAL SPREAD
Given rum’s global spread, and all the differences in production techniques, it is even more surprising that rum is one of only two spirits categories to have seen growth in all major regions of the world.
70,000
Vol 2000
Vol 2010
60,000
000s 9lt cases
50,000
40,000
30,000
20,000
10,000
0
ASIA PACIFIC
AMERICAS
EUROPE
AFRICA &
MIDDLE EAST
CIS
In addition to local sales, in 2012 there was almost 1.5 million cases sold through Duty Free channels and this number is also growing strongly.
SPICING UP THE CATEGORY
Spiced rum has more than doubled in size over the last ten years and flavoured varieties are up by over 50% (source: IWSR). They have easy appeal to many different consumers and perhaps this is why spiced rum has helped grow the rum category amongst younger consumers over the last ten years. According to just-drinks, spiced rum now accounts for 8% of the total rum market and it doesn’t look like holding back – new innovations and a number of new brands have dramatically increased the choice available to consumers which has, in turn, brought new consumers to rum. For premium and super-premium varieties, like those bearing the
Authentic Caribbean Rum Marque, this increased category interest can only be a good thing.
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A U T H E N T I C
C A R I B B E A N
R U M
The economic backdrop has not been good for Spain.
GDP decline, problems in the banking sector and severe unemployment have had an impact on all consumer markets, especially spirits. Despite this, rum continues to be the second biggest spirits category at nearly 4 million cases a year and the Spanish market is the largest in the EU.
The main trend in recent years has been the resurgence of gin with the category showing growth in a heavily depressed market. Gin & Tonic has driven premium brands into growth, while sales at the lower end decreased.
However, there are signs that this is beginning to slow as consumers once again become more adventurous and seek recommendations from bartenders. There is a great opportunity for rum to step in and educate consumers about premium-aged rums as they look for the next big thing in the spirits world.
red as st as before. The consumer isd.”artin g much to get tired of this tren
“Gin & Tonic is not bein g orde
Miguel Figueredo (writer, consultant and experienced bartender)
The Spanish rum market is dominated by Brugal and Barceló, who together, hold over a third of the market. Their long-term growth trends have been remarkable, but as with many premium brands both have recently been hit by economic factors. Essentially, rum consumers are young and it is this group experiencing the highest unemployment rate. In turn, this has seriously impacted on the night bar sector and the rum category in particular.
Despite this, many brands are continuing to invest in this market as they see the future potential it offers once the economy starts to recover. The premium end of the market has been affected by consumers switching to gin, while brands in the standard rum category have been hit by younger consumers trading down to cheaper alternatives or looking to other categories. Brands have also suffered at the hands of own-label competitors as the value segment expands.
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A U T H E N T I C
C A R I B B E A N
R U M
Spanish Market Share Of Spirits
IWSR – 000s 9lt cases
2002
2012
10 yrs
Share of Spirits
Whisky
Rum
Gin / Geneve
Brandy
Vodka
5,535
3,929
3,422
2,142
1,303
-51.8%
19%
-14.0%
-44.2%
-7.6%
26%
18%
16%
10%
6%
11,486
3,289
3,978
3,839
1,410
Rum Style
White Rum
1,320
382
-71%
Gold Rum
1,893
3,478
84%
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Share of Rum
10%
89%
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A U T H E N T I C
C A R I B B E A N
R U M
Germany is the second biggest spirits market in Europe and 10th largest in the world. Despite a more favourable economic climate than many other countries, the German spirits market shows steady long-term decline.
Within this, vodka (the largest category) shows steady growth, but rum and whisk(e)y have been the recent pacesetters. According to Bastian
Heuser (bartender, PR and beverage consultant):
t rough success of rum has come aboun gthestyle the
“The
i large bran ds successfully adoptisatiolif an d an m positionin gs, a tren d to premiuppin g run s.” m increase in availability of si
As with many other countries, rum & coke is the most popular way of consuming rum in Germany, and ginger beer (locally known as ginger bee) is beginning to grow in popularity. Looking at high-end on-trade outlets, mojitos and daiquiris are the most popular cocktails.
In general, as the market grows, consumers are becoming more brand aware and brand loyalty is growing in the spirits category, which in turn is extending to rum.
German Market Share Of Spirits
2012
IWSR – 000s 9lt cases 2002
10 yrs
Share of Spirits
Vodka
Brandy
Rum
Whisky
Gin / Genever
Other Spirits
Cane
147%
-39%
26%
15%
-17%
-62%
11%
17%
14%
9%
8%
2%
2%
1%
34%
-10%
++
-43%
187%
-10%
Share of Rum
52%
24%
12%
5%
3%
3%
3,340
11,268
3,509
3,514
1,118
2,000
250
8,245
6,888
4,413
4,057
923
770
277
Rum Style
Gold Rum
1,720
2,297
White Rum
1,189
1,073
Spiced Rum
539
Other Rum Verschnitt 410
235
Other Flavoured Rum 50
144
Black Rum
140
126
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A U T H E N T I C
C A R I B B E A N
R U M
The French market is dominated by rums from the French overseas territories. Traditionally these rums were imported at 55% alcohol by volume (ABV) but in recent years this has been reduced to 40% and has had a favourable impact on pricing.
Overall, rum is relatively underdeveloped in France, at around 8% of total spirits, and rum from the French overseas territories is very competitively priced. However, according to just-drinks: “there is also an emerging premium and super-premium tier” with premium rums growing by some
36% between 2010 and 2011 – this category may well see further development. Christophe Bouyssie (freelance journalist) puts it succinctly:
“The image of rum has moved from somethin g very colonial to somethin g much more exotic.”
White rum is the most popular variety, with around two-thirds of volume, but in recent years golden rums are growing faster.
French Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
10 yrs
Share of Spirits
Whisky
Flavoured Spirits
Rum
Vodka
Brandy
Gin / Genever
Cane
22%
-28%
33%
220%
-41%
-39%
++
40%
40%
8%
8%
1%
1%
0.2%
12,249
20,820
2,337
930
852
796
5
14,934
14,887
3,108
2,979
502
486
71
Rum Style
White Rum
1,434
2,035 42%
Gold Rum
903
1,066 18%
Share of Rum
65%
34%
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A U T H E N T I C
C A R I B B E A N
R U M
The UK market has traditionally been a strong one for rum. The last five years have seen a rapid growth in spiced rums, which now represent over
20% of the market and have overtaken golden rum. However, the golden rum category continues to grow and according to just-drinks:
“The number of smaller bran ds enterin
the market has helped to stimulate the g d ynamism of the category.”
The cocktail trend continues to be strong and is predicted to increase by more than 10% in the next two years (source: just-drinks 2013). Cocktail bars continue to push the boundaries with innovations such as bespoke infusions and quirky garnishes as consumers are willing to pay more for the perfect serve. Pubs and bars are also getting in on the cocktail trend, made more accessible with the advent of pre-prepared mixes.
London’s international community is helping to grow the top-end of the on-trade, whereas outside of the metropolitan areas consumers appear to be cutting back. In addition, the premium off-trade sector also continues to grow as consumers trade up at home instead of going out. Generally, the
UK remains an important focus for brand owners, acting as a showcase for the Middle East and Far East markets.
UK Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
10 yrs
Share of Spirits
Vodka
Whisky
Rum
Gin / Genever
Brandy
Cane
9,181
7,848
2,767
2,726
1,928
28
62%
-13%
24%
16%
-14%
-12%
30%
26%
9%
9%
6%
0%
-5%
283%
87%
-7%
Share of Rum
52%
21%
15%
12%
5,657
8,981
2,237
2,356
2,252
32
Rum Style
White Rum
1,520
1,445
Spiced Rum
150
573
Gold Rum
222
415
Black Rum
346
323
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A U T H E N T I C
C A R I B B E A N
R U M
As with Spain, the overall economic climate has not helped the Italian alcoholic drinks market. Health concerns, alcohol awareness campaigns and new drink-driving regulations also appear to have hit the overall spirits category with a steady decline apparent since 2007.
White rum has shown some growth in the Italian market due to the popularity of cocktails such as the mojito, and rum still remains popular with younger consumers. However, sales are skewed heavily to the ontrade with some 80% being sold through this channel. According to justdrinks: “There is likely to be faster growth at the top end of the quality spectrum as awareness of premium and super-premium brands increases as they become more available”.
nscious, te in sip g so consumers would be more interesreddto bepinst rums. ju for
Premium rum is usually conside e diversity an d th sippin g, but we need to focus on more.” educate consumers
“In Italy consumers are quality an d style co
Dan Biondi (founder and CEO of Rum Club Italiano)
Italian Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
Brandy
Whisky
Rum
Vodka
Gin / Genever
Cane
10 yrs
Share of Spirits
3,869
2,838
-27%
19%
2,079 1,106 -47% 7%
938
1,041
11%
7%
492
900
83%
6%
612
460
-25%
3%
29 17
-43% 0.1%
Rum Style
Gold Rum
625
636
White Rum
301
392
2%
30%
Share of Rum
61%
38%
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A U T H E N T I C
C A R I B B E A N
R U M
Although the total spirits market in the Netherlands has been in slow decline for some years, rum continues to buck the trend. Flavoured rums are a well-developed market segment, but the real potential lies in golden rum as just-drinks comments: “Golden rum remains a fashionable category. The slow up-trade to premium and super-premium brands is expected to continue”.
Cok is mmon
Like other countries, Rum & nowedrinakicog with
“
n e drink, but there are more peoplHigh-en d bars are now other mixers an d cocktails too. the dark an d golden really 'playin g with rums froman d excitin g drinks.” categories to create di fferent
Andrew Nicholls (mixologist and co-founder of Barchaeology).
Dutch Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
10 yrs
Share of Spirits
Gin / Genever
Whisky
Rum
Brandy
Vodka
Cane
-44%
9%
27%
-36%
45%
1700%
22%
14%
9%
7%
6%
0.3%
2,809
953
507
837
298
1
1,575
1,037
644
533
433
18
Rum Style
White Rum
385
412
7%
Other Flavoured Rum 58
103
78%
Gold Rum
37
53
42%
Spiced Rum
50
Black Rum
27
26
-3%
Share of Rum
64%
16%
8%
8%
4%
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A U T H E N T I C
C A R I B B E A N
R U M
Spirits have fared relatively well during the recent economic downturn, but this may be due to a good deal of cross border trading. Spiced and flavoured varieties are starting to find favour, but as with other countries, golden rum continues to show good growth.
“The rum market in Belgium is rather like France
and sippin g rums could easily develop in the same way as Malt Whisky.”
Francois Monti (writer and journalist)
Belgium and Luxembourg Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
10 yrs
Share of Spirits
Gin / Genever
Vodka
Rum
Brandy
Cane
751
293
193
415
3
603
475
358
208
7
Rum Style
White Rum
142
190
Gold Rum
47
115
Other Flavoured Rum 1
27
Spiced Rum
20
Black Rum
3
6
-20%
14%
62% 11%
85% 8%
-50% 5%
117% 0.1% 33%
142%
++
++
116%
Share of Rum
53%
32%
8%
6%
2%
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A U T H E N T I C
C A R I B B E A N
R U M
Denmark offers real potential as there is steady growth in the spirits sector over the medium-term. It has a well-developed rum segment covering all major styles and represents 11% of the total spirits market. Like the Scandinavian markets, there is a strong appreciation of premium-aged spirits and many observers see these consumers diversifying into premium-end rums.
Denmark Market Share Of Spirits
IWSR – 000s 9lt cases 2002
2012
10 yrs
Share of Spirits
Vodka
Whisky
Rum
Gin / Genever
Brandy
71%
18%
102%
50%
40%
17%
12%
11%
6%
3%
++
70%
86%
-13%
Share of Rum
29%
28%
26%
16%
193
203
107
83
49
330
239
216
124
68
Rum Style
Spiced Rum
1
63
White Rum
35
60
Gold Rum
30
55
Other Flavoured Rum 40
35
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A U T H E N T I C
C A R I B B E A N
R U M
ASIA-PACIFIC
India and the Philippines both have a strong culture of locally produced rum. According to just-drinks “both are low priced markets” and have rather skewed tax regimes that mitigate against imported products.
However, many observers feel that aged rum could succeed in the way that cognac and scotch have grown popular in other emerging markets.
CANADA
Canada is another country with a long tradition in rum and the category accounts for 20% of all spirits. The white and golden rum sectors are well developed, but, like the USA, it is spiced rum that has recently stolen the limelight.
CHILE
In the last decade Chile has galloped up the world rankings with volume increasing six-fold to place it as the 13th largest rum market. According to just-drinks: “Rum has been the fastest-growing category of the decade as
Chileans of all ages have switched en masse from pisco”. However, this trend seems to have reversed recently.
CHINA
Rum is not well known in China, but there is a widely held view that aged rums could emulate the success of cognac and whisky by finding favour with quality conscious consumers.
RUSSIA
Rum has been finding lots of fans amongst fashionable Russian city dwellers, leading to growth rates of around 30% in each of the last three years. It looks set to be a key market for many golden rum brands over the next decade.
USA
Rum consumption in the USA dates back to the 17th century. It’s hardly surprising then that it is a well-developed category accounting for around
12% of the total spirits market. Bacardi is the leading brand, but it is the strong development of the spiced and flavoured categories that have drawn most comment in recent years. At the same time golden rum has stayed resilient, represented by a wide variety of imports.
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Rum:
The following section looks at the journey of
Authentic Caribbean Rum, its incredible history and how it’s viewed by industry leaders.
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mixology started we looked into the
“When
world istory of spirits an d a whole n ew diverse, h open ed up to us. Rum is en dlesslys fin d ll of stories an d you can alway ery fu hin g to fit the palate of ev somet customer that walks in.”
Andrew Nicholls (mixologist and co-founder of Barchaeology)
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A U T H E N T I C
C A R I B B E A N
R U M
The Caribbean is the spiritual home of rum. Nowhere else in the world can claim the authenticity or diversity of the rum produced here.
It’s the consequence of centuries of refinement and a unique culture that embraces its future as much as it celebrates its past.
Rum defines the area and the people who live here, whether it’s their livelihood, their business, or simply their choice of drink.
It’s also one of the Caribbean’s most important exports, having an economic and social impact that cannot be underestimated.
Diversity is one of the strongest virtues of Caribbean rum. Every distillery is different, and within each, the production process will be unique – fermentation, distillation, ageing and blending can all play a part in creating an incredible variety of rums. When so much time and effort goes into a range of products like this, it’s only right that there is a form of recognition to match, which is why the Authentic Caribbean Rum
Marque was developed.
It’s a unique example of a group of diverse countries and producers that have agreed common standards and regulations – all this in a category often criticised for a lack of rules. In addition, people are becoming more and more interested in stories of provenance and production.
They want to know where something has come from, who has made it and the detail of how it came to be – the ACR Marque offers exactly the guidance they’re looking for.
Within the drinks industry, rum is seen as the most versatile of spirits.
Rum not only forms the base of the world’s greatest cocktails (Mojito,
Daiquiri, Presidente, Cuba Libre etc.) it also makes a fantastic long drink with ginger ale, soda water, ginger beer, cola or fruit juices, while premium quality rums are perfect for sipping neat. However and wherever it’s enjoyed, Authentic Caribbean Rum has the ability to take you on a journey. The history, the countries, the producers and all the incredible flavours are distilled into each and every sip. Enjoy!
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A U T H E N T I C
C A R I B B E A N
R U M
It’s no surprise that Authentic Caribbean Rum (ACR) is enjoying such popularity. Provenance, taste and genuine craft are sought after in so many other global markets, which makes the diversity and skill that goes into Authentic Caribbean Rum such exceptional commodities. Our Marque of authenticity was launched 5 years ago and today we celebrate the continued growth of our rum brands in the knowledge that they are cementing their place in the world drinks market.
The analysis highlights WIRSPA’s Marque of authenticity and its impact on the spirits market since launch. It has played a tremendous part in setting Authentic Caribbean Rum aside from other spirits, using its symbol of authenticity, provenance and quality to help guide purchase decisions.
Thanks to the return of the cocktail culture and the rise of the educated consumer, there is a growing global audience who are thirsty for guidance and knowledge on quality products. It’s why we’ve analysed the global rum market as a whole – country by country it’s important to know the types of rum being chosen by consumers, where money is being spent and which are the most popular rum brands.
We also look at the differences in trends and attitudes towards rum, as well as the most popular varieties within the category – we recently hosted round table debates in Milan, London and Madrid, as well as an online video discussion with industry experts to get real insight into trends and attitudes.
The outlook is very good for rum and there is a real interest in all styles – white, golden, dark, flavoured and spiced are at a real high. Consumers’ growing desire for information on provenance means that Authentic
Caribbean Rum looks set for a golden future.
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into a bar
“If you go back 7 years, people didn’t walk an d say: 'I’d like a golden rum.’ But now it’s: 'tell us about this bottle’ or 'what’s so special about n rum’. People are very, very interested in rum.”
golde
Bastian Heuser (bartender, PR and beverage consultant):
WEST INDIES RUM & SPIRITS PRODUCERS’ ASSOCIATION INC.
(WIRSPA)
WIRSPA was founded in the late 1960s. It is a group of national associations of rum producers within the Caribbean and is based in Barbados. Featured rum brands under the WIRSPA umbrella include: Angostura 1919, Appleton
Estate V/X Jamaica Rum, Barbancourt Réserve Spéciale, Barceló Imperial,
Borgoe 8 Year Old, Brugal XV, Chairman’s Reserve, Clarke’s Court Old Grog,
Cockspur Fine Rum, Doorly’s 5 Year Old, El Dorado 15 Year Old, English
Harbour 5 Year Old, Mount Gay Extra Old, Mount Gilboa, Travellers 5 Barrel,
St. Nicholas Abbey and Captain Bligh XO.
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A U T H E N T I C
C A R I B B E A N
R U M
Authentic Caribbean Rum can lay claim to a rich heritage and, because of the region’s make up, a vast range of styles.
Forming an area of over a million square miles, the region is home to an array of different cultures and languages which represent all continents of the world. From this melting pot over 30 distilleries have developed, each as diverse as the countries from which they come.
We have an incredible variety to offer the consumer. Each of the rum brands and distilleries has its own history, process, character and flavour.
While this variety in fermentation, distillation, ageing and blending methods makes for an incredibly wide choice of rum that suits all different palates and mixes, there is a shared passion for creating the highest quality rums – these are authentic products of the Caribbean and every single producer wants to celebrate the region as much as the products themselves.
A UNIQUE MARQUE
To help trade customers and consumers identify Authentic Caribbean Rum brands, our Marque was created. It is designed to represent provenance and quality, and may be used by eligible brands after application, assessment and being granted a licence.
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A U T H E N T I C
C A R I B B E A N
R U M
The glorious Caribbean climate means that the rum produced here matures
2-3 times faster than spirits produced in cooler climates. As a result, a five year-old rum can easily match the complexity and ‘age’ of a premium spirit that has been aged for much longer elsewhere. Authentic Caribbean Rum doesn’t have to be 8, 10, or 15 years old to be exceptional. It becomes exceptional, quicker.
So unlike other spirits, maturity is not the only major indication of quality.
In fact, many argue that it is the art of the master blender (the person who selects individual barrels and then balances the subtle flavours and aromas of rums from them) who is key to crafting a great rum. Nevertheless, it is important that consumers are clear about the credentials of the product they are enjoying. Where age claims are made, these should be transparent and easy to understand.
All Authentic Caribbean Rums conform to Caribbean Community (Caricom) and EU regulations when it comes to referencing age – any age-related statement refers solely to the age of the youngest rum in the blend. For example, a bottle of Authentic Caribbean Rum with ‘8 years old’ written on the label may well contain a proportion of rum which is much older, but none will have been matured for a moment less than eight years.
Furthermore, Authentic Caribbean Rums never use the ‘Solera’ method – the practice of adding fresh spirit into barrels containing an older spirit to establish an age claim for a product. Nor is the practice of average ageing ever used – although it is a technique used in some countries, it is not permitted to be used as an age attribution for ACR certified rums or within the EU (or many other international markets).
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A U T H E N T I C
C A R I B B E A N
R U M
The popularity of rum is growing worldwide.
Perhaps this isn’t surprising as it may confidently lay claim to being the most diverse and prolific of all of the world’s spirits. Defying all attempts at generalisation, rum, unlike many other spirits, really can be seen as a drink with a global footprint and a truly worldwide audience.
For all its global recognition, it’s the Caribbean that is seen as the spiritual centre of the rum world. The spirit we know today as rum has evolved alongside the sugar industry of the colonial Caribbean world and remains one of the major industries, responsible for a significant proportion of income for the region. Most of the world’s great rums originate from the
Caribbean and it is here that the Rum Masters practice an art form that is steeped in history and tradition.
THE WORLD’S BEST?
There are as many interpretations of what constitutes great rum as there are countries which produce it. In addition to the heartland of the
Caribbean, significant rum producing countries include Australia, India,
Madagascar, Mauritius, New Zealand, Philippines, Reunion, South Africa plus South and Central America. Rum is also blended and bottled in many other places. Not all of these would achieve the definition applied to
Authentic Caribbean Rum, but whichever way you look at it, drinking rum is a truly global experience and a particularly tasteful way to travel.
A SWEET HISTORY
Although cane spirits were being made wherever sugar was being grown
(the plant itself is generally agreed to originate from Papua New Guinea) long before sugar became the Caribbean cash crop, the rums of the
Caribbean soon rose to the top of pile. In the seventeenth century, one writer described the clear spirit he found in Barbados as “hot, hellish and terrible”. A few years later things had moved on. A Dutch sea captain returned from the West Indies and wrote that “the spirits are now smoother to the tongue and have acquired a golden colour during the voyage”. By the eighteenth century a hogshead of the finest aged Barbados rum was judged fit for George Washington’s inauguration party.
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No doubt spurred on by this vote of confidence, Caribbean rum producers have spent the ensuing two centuries perfecting the arts of fermentation, distillation, ageing and blending. Today, much rum is aged in oak barrels allowing the spirit to acquire a golden to dark brown hue. Equally, if not more important than ageing, the final stage of production is blending – the point at which a number of rums are skillfully combined with the personality of the countries and a shot of heritage to produce something uniquely Caribbean.
THE DEFINITION OF RUM
In accordance with EU regulations and rum standards applicable in WIRSPA member countries, any spirit distilled solely from the fermented sugars derived from the sugar cane plant and distilled below 96% alcohol by volume is rum (rhum in French and ron in Spanish). Authentic Caribbean
Rums are unique in that they depend solely on skill and craftsmanship to develop a wide array of flavours without the use of additives (something that’s broadly permitted in many other jurisdictions).
There are many products around the world that would not fit the above specification – some are made using neutral spirits derived from agricultural products such as beet, grain or potatoes then coloured and flavoured to resemble rum. In the case of Batavia arrack (also known as arac or arak), fermented red rice is added during the fermentation process and the spirit distilled is therefore not obtained solely from the fermented sugars derived from the sugar cane plant. None of these products are rum according to the definition of rum in WIRSPA member countries or in the EU.
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A U T H E N T I C
C A R I B B E A N
Looking at the dynamics of the market, and the views of influential characters in the industry, there is huge optimism for the future of the category, which is being driven by four key factors – the breadth of appeal for rum, the growth of cocktails, the global trend to premiumisation and the enthusiasm of top trade professionals for the category.
R U M
premium-aged rum for sipping and savouring. In many markets, there is an understanding of highquality aged spirits, it just requires a little more education to unlock the real potential. There are also many opportunities to grow the golden rum category in the on-trade. Bartenders can experiment with different styles of rums in their cocktail recipes, while the taste profile of Authentic Caribbean Rums makes them ideal for matching with desserts, or served as a digestif.
UNIVERSAL APPEAL –
A SPIRIT WITHOUT COMPROMISE
As many have noted, the range of available rum styles means that there really is something for everyone. No one has to compromise.
“There is a real opportunity for rum to be served as a digestif, instead of, say, a cognac at the end of a meal.”
Alice Lascelles, (journalist and rum expert)
The latest just-drinks report suggests some interesting market insights, one of which states that rum: “…possesses the energy of vodka and the discernment and connoisseurship of scotch or cognac. Rum hits all the right notes”.
In the mainstream market, rum with a mixer will probably always be at the core of consumption, although many believe that there are interesting options that will continue to expand this area.
At the younger end of the rum spectrum, spiced and flavoured products are bringing new consumers into the category all the time. As these people grow their understanding of the category better, they are likely to seek out premium products with different characteristics. Many believe that the real boom is still to come, and that it will take the form of
COCKTAILS, MIXOLOGY AND CREATIVITY
While the diverse nature of rum gives a wide range of options for its use, the recent global resurgence of the cocktail has also brought rum to the fore – time and again, rum is used as the bartender’s go-to spirit for making cocktails.
This return of the cocktail culture is undoubtedly an important driver in rum’s growth across a range of markets over the last decade. Bartenders are constantly innovating and looking for new flavours. They have moved from using white rums in cocktails to aged and premium rums. In turn, this has introduced new consumers to these styles of rum and encouraged them to experiment more in the rum category.
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“The mojito has become incredibly popular in many markets – it’s a great way to introduce someone to the rum category, especially if they are used to more neutral spirits.”
Amit Sood (expert bartender and trainer)
from around the globe. Provenance in this arena is playing an ever-increasing part in consumer choice.
Hungry for knowledge about where ingredients come from and how products are made, consumers will take time to read and learn about a product, and really engage with it if they believe in its authenticity.
Cocktail culture is a talking point in many markets and just-drinks reports that “cocktail consump-tion in Asia is coming in,” and that, for rum, “the future looks good”.
“Connecting to authenticity links to experience and expertise, so ‘hyper-specificity’ plus demonstration of ethical responsibility and sustainability, can really help niche brands.”
Philip Duff (Liquid Solutions)
Ease of drinking and affordable luxuries are both felt to be key trends going forward.
With such a rich seam of history and heritage to draw on, Authentic Caribbean Rums are well placed to capitalise on this trend, offering a broad range of styles and flavours. The ACR Marque provides the perfect communication tool at the point of sale, highlighting rum’s authentic Caribbean provenance.
PREMIUM POTENTIAL
– THE RISE OF THE CONNOISSEUR
While the talk in the global spirits market is that growth is being driven by developing markets, there “Bartenders love a story. There isn’t another are also great opportunities for premium rums in spirit with such a phenomenal history – more mature areas, despite the weak global economy. the most amazing out of all the spirit
This is a trend reflected throughout spirits and other categories. There’s a part of the world luxury markets thanks to the development of called the Caribbean where this [rum] aspirational consumers globally. The IWSR predicts is a way of life.” that super-premium rum volume will increase by Andrew Nicholls (mixologist, presenter and around 50% by 2017 with many countries showing co-founder of Barchaeology) the right pre-conditions for growth of this sector.
Within the rum category, many consider that there
In most markets, consumers are becoming is room for further premiumisation. The category is increasingly educated about food and drink – they relatively under-developed at the top end and many are constantly seeking out new trends and flavours have spoken about its potential. In the recent just-
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A U T H E N T I C
C A R I B B E A N
drinks rum review, Yves Schladenhaufen (Havana
Club’s international marketing director) says that:
“Globally, rum is an underpremiumised category, especially when compared to whisk(e)y and vodka. We believe it will progressively catch up on this trend, especially as more of the stronger players have now entered the superpremium and above category.”
their game too. According to just-drinks:
“Local producers are raising their standards in terms of packaging, liquid quality and marketing. Significantly, these local producers are now intent on building export sales”.
When it comes to standards, rum is often negatively referred to as a maverick category without regulation, which actually adds to the appeal for some.
However, WIRSPA believes that structure and reassurance are both needed if Authentic Caribbean
Rum is to be respected. It is one of the main reasons behind their Marque of authenticity, provenance and quality – to reassure both trade customers and consumers.
In the same report, Captain Morgan global brand director, Russell Jones, says:
“It is bizarre how underdeveloped the super-premium rum area is because, as a category, rum does a really nice job of marrying the energy of white spirits with the tradition and authenticity of dark spirits. There is no reason why the super-premium area could not be much larger than it is today. It is not so much a question of ‘will that gradually change’, but rather ‘when is it going to explode?’
When the super-premium rum area begins to catch fire it won’t be gradual, it will be pretty quick and dramatic.”
Another positive factor in rum’s premium popularity is an increase in quality. While multinationals have well-established products and the marketing muscle to force their brands in front of consumers, niche producers have been raising
R U M
We know that consumers are actively looking for products with stories of provenance and quality behind them, and that certainly applies to the cocktail bar. Premium, super-premium and niche rum brands (like Authentic Caribbean Rums) fit perfectly into this category and as Bastian Heuser (expert bartender and co-founder of Bar Convent) suggests:
“The sheer variety of sipping rums launched in recent years shows the huge trend of premiumisation in the rum world.”
So, now really is the time for golden rum, in particular Authentic Caribbean Rum, to shine.
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A U T H E N T I C
C A R I B B E A N
R U M
consider the role of key influencers mixing and pouring in bars across the globe”.
Cyrille Hugon (director of the Rhum Fair, Paris).
THE IMPORTANCE OF THE BARTENDER
At bartender level, many credit rum’s popularity to being based on sugar cane and therefore offering a remarkable foundation for mixing and carrying The opportunity for these individuals to showcase flavours. In addition, rum’s diversity across white, their talent is taken up by many and this not only golden, dark, spiced and flavoured styles means that develops the individual, but explores new boundaries there is something for all palates, but ahead of all for the brands as well. other categories it gives bartenders the freedom to
“With competitions and challenges you can explore and discover ‘flavour fusion’. get young bartenders to be creative, to work for the brands and create something new.
“When I started in the industry it was
We shouldn’t forget that young bartenders enough to just turn up, but we are now who work at the front are really going to in a golden age of mixology and sell the brand.” standards are extremely high.”
Bonny Sila-Trakoon (international bartender).
Philip Duff (Liquid Solutions).
The bartender’s role in influencing consumer choice cannot be underestimated and engaging with bartenders is a critical part of the education process.
For bartenders, rum is one of the best-loved spirits at their disposal. Endlessly versatile, mastering the use of rum is an absolute must for any successful bartender and as Misja Vorstermans (high-profile bartender) says:
“Right now, bartenders are pushing golden rum to make it more successful. If people come into the bar and ask for a rum & coke, “Rum is the bartender’s most favourite spirit to work with and to drink. It’s such it’s their job to suggest something more interesting, like Authentic Caribbean Rum.” an interesting spirit, without being too pretentious – sometimes whisky or cognac
Bonny Sila-Trakoon (international bartender). can be too elitist.”
The growth and popularity of rum is influenced in part by the big brands “but we should also
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in it right now.”
“We’re
Dr. Frank Ward, Chairman of WIRSPA
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A U T H E N T I C
C A R I B B E A N
R U M
“Rum is such an incredible spirit – diverse, unique and familiar all in the same sip. I’ve always been amazed by just how many different types of rums there are – so many different flavours and variations.
There are also many different ways of fine-tuning a rum’s flavour – fermenting, distilling, ageing, blending to name a few. So there really are endless possibilities for this spirit and its diverse tastes – subtle or feisty, smooth or harsh, rich or delicate, floral or woody, or a little of each. And all that before you’ve even considered mixing it.
It’s fantastic that Authentic Caribbean Rum is getting all this attention and growing so much in popularity. It’s the spiritual home of rum and I’m really excited to be able to tell people all about its amazing history. Rum has been part of Caribbean life for centuries and, by sharing our passion, energy and knowledge of it, I’m sure we will help it stand the test of time.”
Cheers!
Dan Biondi (founder and CEO of Rum Club Italiano)
Acknowledgements.
We gratefully acknowledge the contribution of data from the following sources:
Just-drinks/the IWSR Global Market Review of Rum –
Forecasts to 2017. (published May 2013)
•Just-drinks www.just-drinks.com
• The IWSR. www.iwsr.co.uk
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1. Angostura 1919 (Trinidad & Tobago)
Clarke’s Court Old Grog (Grenada)
9.
2.
Appleton Estate V/X Jamaica Rum
(Jamaica)
10.
Cockspur Fine Rum (Barbados)
3.
Barbancourt Réserve Spéciale
Five Star Rum (Haiti)
4. Barceló Imperial (Dominican Republic)
5.
Borgoe 8 year old (Suriname)
6. Brugal XV (Dominican Republic)
7.
Captain Bligh XO
(St. Vincent & the Grenadines)
8. Chairman’s Reserve (St. Lucia)
ACR_DoR_V4_pgs.indd 39
11. Doorly’s XO (Barbados)
12. Dorado 15 Year Old (Guyana)
El
13.
English Harbour 5 Year Old
(Antigua)
14.
Mount Gay Extra Old (Barbados)
15. Mount Gilboa (Barbados)
16. Nicholas Abbey (Barbados)
St
17.
Travellers 5 Barrel (Belize)
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