Whether it’s pink gin, no or low-abv options or CBD infused drinks. The drinks industry is always on the lookout for the next big thing. Can the next big boom in spirits be something that is not something new at all but an old favourite? Is it time we start preparing for a rum-olution?
Statistia, an online statistics and market research company, forecasts the rum market to grow by 3.7% per year worldwide between 2019 and 2023. While it may not be on the same level as whisky or gin, it certainly shows that it’s a growing category that would be a shame to ignore.
In the UK alone, one of the largest rum markets, rum sales have gone up and passed the £1 billion mark in 2018. The latest WSTA report showed that gold rum was the leading category in the on-trade market and white rum dominated in the off-trade. Not only has rum sales in the UK also increased but so has the number of rum brands. There were around 50 rum brands in 2006 and today there are approximately 200 brands. The IWSR also reports that rum is on the rise in France.
However, a different tale is being told in other top rum markets: India, USA, and the Philippines (other top markets include: the Dominican Republic and Cuba), which are forecasted to see a decline between 2016-2021.
Drinks giant Diageo have seen a dip in rum sales with it being the only spirits category to decline in the last half of 2018, falling down 2% due to falling organic sales. One of the possible reasons for this fall is a result of the declining popularity of fizzy/soft drinks like cola which are seen as a natural pairing with rum, especially for the younger drinking generation which are becoming more health-conscious.
A 2017 report from The Global Rum Insights tells us that "while high-volume (but usually low-value) countries such as India and the Philippines are set to decline, a basket of much smaller but more promising destinations are on the increase."
So, what is the future of rum?
The latest research has shown that an increasing number of people are drinking less but drinking higher quality products and willing to paying more for it, especially in Western countries. Rum is no exception to this.
The 2017 Global Rum Insights report expect craft, premium and super-premium rum to grow. Craft rum brands are slowly on the rise with producers looking to emphasise the age, country of origin (rum is made across the globe but the Caribbean, Latin America and The Philippines are amongst the biggest producers), organic credentials, or generally, promote it as an artisanal spirit made for sipping.
So far these have shown to be successful strategies as a recent study showed that 22% would pay more if a bottle of rum was a craft brand. The Distilled Spirits Council have already seen sales of super-premium rum go up by 8.3% and Pernod Ricard reported to the IWSR that super-premium rum sales have shot up by 5.1% in 2017 and ultra-premium rum sales saw even better figures with a 17.6% increase.
One potential issue that we foresee new rum brand producers is access to the top quality liquid. This is especially an area of concern for brands who are looking to tap into the provenance of rum as a key part of their product but don’t have their own distillery, easy access to one, find it difficult to navigate the varying classifications of rum and how to find the liquid that best suits them. These rum brands will greatly benefit to work with an experienced supplier, like Ethimex Ltd, who has a close and direct relationship with rum distilleries and is able to supply rum in bulk quantity that is consistent in quality.
Drinks insiders expect to see a growth in the aged, spiced and flavoured rum category with booming cocktail culture both on-trade and at home as being a big driver of this, and boosted by social media and the rise of the #drinkstagram and #cocktail culture.
In the UK, flavoured rum is predicted to grow as more consumers are after diversity in their drinks and due to the lack of a singular and unifying classification for rum, producers are able to be creative with their rum flavourings, giving imbibers more diverse choices and driving future sales.
Rum is a diverse spirit with diverse sub-categories (white, light, dark, gold rum), made in many different countries each with its own rum laws and not bound to a unifying rum classification. As a result, the future of rum is also quite varied with each sub-category awaiting different fates.
With big drinks company like Campari and Constellation Brands buying whole or majority stages in rum brands and distilleries, and giants like Diageo putting more resources into revitalising its rum brands, perhaps this shows that the future of rum is looking as bright as our favourite gold rum.
If you are looking to get into the rum game, contact Ethimex today for your all rum supply needs or check out our rum products on our Premium Spirits page.
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