Rum is more than just a drink – it’s a way of life,” says self-styled global rum ambassador Ian Burrell. Well, he would say that wouldn’t he?

Nevertheless you could argue that rum does represent a way of life, a culture that other spirits do not. That character or culture is probably best summed up as: ‘Caribbean’ – sun, beaches, palm trees and partying.

But for dark, aged rums you need to strike a more serious note if you are to be taken, well, seriously. 

Ian Williams, author of the book: Rum: A Social & Sociable History of the Real Spirit of 1776, says: “It is a wonderful and greatly under-appreciated drink. For the connoisseurs an aged rum can match and even surpass a single malt scotch or a fine cognac.”

Some would contest that point. However, carefully crafted, aged rums do deserve to be taken seriously in the same way other dark spirits are enjoyed and evaluated.

Euromonitor alcoholic drinks senior analyst Spiros Malandrakis, commenting on the rum market at the end of last year, said: “Dark was the colour of the segment that spearheaded innovation, fuelling premiumisation.”

With India’s shift away from lower-end dark rum, global volume growth figures – India accounting for 402 million of a total 1,474 million litres of rum sold globally in 2012 – looked a deceptively pessimistic picture. Malandrakis says rum’s western bastions turned out to be its main engine of growth.

Jeremy Cunnington, another Euromonitor senior alcoholic drinks analyst, tells Drinks International: “The global category is a mixture of products. Cheap, locally produced rums are dominant in volume terms, especially in dark rum, with India and the Philippines being the large volume producers with brands such as Tanduay and McDowell’s, but also a number of Latin American markets such as Venezuela. White rum in many senses is the Bacardi category as the brand accounts for a third of all global white rum volumes.”

Opportunities and challenges

As to the opportunities and challenges for the dark rum sector Cunnington says: “Challenge: developing the super-premium and premium categories in both dark and white rum categories, but primarily dark rum. 

“Aged products can certainly play a part and, as a head start, the age of a product in spirits has a premium connotation in the minds of consumers. 

“As can be seen with brands such as Kraken and Sailor Jerry, it doesn’t necessarily have to just be aged.

“Opportunity: spiced rum in many developed markets – it accounts for more than 50% of the US dark rum market.”

Botran managing director Frank Quiñones says: “The role of dark aged rums is highly relevant in a category that has been known for years as the low-price/quality party drink. Dark aged rums bring a message of sophistication, quality and versatility hard to find in other dark spirit categories and still remain young, hip and fun.”

Golden period

Clément’s export director, Matthieu de Lassus, says: “I believe the rum category is eventually stepping into its golden period. For many years, people have been forecasting a boom for the rum market. This boom never really happened but we did experience a steady growth for the entire rum category in the past decade, driven mostly by dark and aged rums. 

“This slow but steady growth shows that, unlike gin for example, the rum category is not a fashion category. Rum is a serious, historic and complex category which needs some time to open its wings. 

“For many years the rum category suffered from its lack of regulation and from the lack of education and information available for customers.” 

According to De Lassus, just like the whisky category which can be divided into American, Irish and scotch, rum can be divided into three major categories: Rum (English-style rum from old English colonies); Ron (Spanish-style from old Spanish colonies); and Rhum (French style rum from previous French colonies).

Clément is Martinique’s main rhum agricole producer with two aged brands: Rhum Clément and Rhum JM. Italy and the US are its strongest export markets. “We have today more than 8,000 barrels ageing in our cellars and have plans to build new cellars in the next few years to face the growing demands for these aged rhums,” says de Lassus. 

Bodegas Williams & Humbert’s international marketing manager, Gonzalo Medina García de Polavieja, says: “Consumers are discovering that rum is more versatile in its uses than any other spirits. 

“You have light, heavy, white, gold, extra-aged, flavoured. No other spirit is used the way rum is. Mass consumption of rum is here to stay and it will continue to grow as more and more consumers discover that rum is not only a party drink; it is not only a spirit reserved just for cola. Rum can be sipped, it can be premium and it can be luxury too.”

Williams & Humbert produces the Dos Maderas range: Dos Maderas 5+3 (five years in American oak casks in its place of origin in Guyana and Barbados, then shipped to the W&H bodega in Jerez for three years in Dos Cortados Palo Cortado sherry casks); Dos Maderas 5+5 PX (a third stage of ageing in casks which have previously been used to age its Don Guido Pedro Ximénez for 20 years). Top-of-the-range Luxus is aged for 10 years in the Caribbean and five years in Jerez. Eighty percent of Dos Maderas sales are accounted for the international market, mainly US and Europe (Germany, France, Italy, Denmark and Belgium).

Berry Bros & Rudd Spirits co-produces Penny Blue, a single estate small batch XO Mauritian rum which is distilled, matured and bottled by the Medine distillery. Brand manager Luigi Barzini reckons that rum is currently the most exciting and fast-growing spirits category.

“Rum producers don’t communicate enough to high net worth individuals (HNWI). We need to give them more confidence in our products through tastings and education. Adopting some of the whisky and cognac cues without losing our character might be a solution. Finding the right balance between fun and crafted ‘seriousness’ will always be a challenge,” he says. 

“One of the challenges for the rum industry is to be more transparent about the production process. Sugar, caramel and other sweetening have been used for centuries in the rum industry but today consumers want to know what goes into their drink. 

“Stricter rules, such as in the French Caribbean, might be an option to consider for the rest of the rum-producing countries,” says Barzini.

“Innovation, innovation, innovation,” says Jordi Xifra Keysper, product manager at the Dominican Republic’s Beveland. Its best-selling rum is Cayo Grande and it has a new 12-year-old called Ron Relicario.

“The category has to evolve. The rum category is suffering more than others. I think rum is the category that has innovated less versus other categories. At the same time, we have to take into account the current economic situation. I think the dark aged rums that will perform better will be the rums with an ageing of one to three years.”

Premiumisation

Gruppo Campari’s global integration director for rum, Richard Black, says: “We believe dark aged rums will be at the forefront of the premiumisation of the rum category. 

“Rum is THE spirit in Jamaica, so there is a much wider cross section of drinkers in that market, but there are certainly some overlaps. Further internationalisation of the Appleton Estate portfolio is one of the key strategies for Gruppo Campari moving forward. Premium rum is not really defined in the consumer’s mind in the
US so that represents a big opportunity for us.  

“Gruppo Campari also has strong routes to market in countries such as Italy and Germany, where Appleton Estate has historically not had a strong business. So we are excited about the propositions for the brand in these markets. There are also opportunities for us in the UK, Spain and France and we plan to keep on building in Asia Pacific where we have a strong business in New Zealand but, looking more long term, we think Asia shows promise,” says Black.

Mangrove UK managing director Nick Gillett says: “We are seeing a growing interest in dark spirits generally among both trade and consumers – and this is a great opportunity for dark aged rums. It’s not just about trading up entry-level rum drinkers – we’re finding that consumers are switching from other dark spirits categories to explore dark rums. They are seeking out authentic brands with provenance from different countries of origin and the trade is keen to meet this demand. 

“This is why we’ve up-weighted our rum portfolio to include four premium brands: Blackwell Fine Jamaican Rum, Elements 8 (St Lucia), Santa Teresa from Venezuela and, most recently, the Pink Pigeon – the world’s finest vanilla spiced rum from Mauritius. 

“Consumers are now drinking premium and super-premium rums both on the rocks and in cocktails. There’s a lot more experimentation going on in dark aged rum cocktails, particularly in the top-end bars. We’ve worked hard with our key customers to develop new and recognisable cocktails such as the Elements 8 Dark and Spicy. We’re also seeing more branded bar call and a real desire to understand the different flavours of premium aged rums. It’s very exciting,” he says.

“Our key dark aged rum brand is Blackwell Fine Jamaican Rum, created by Chris Blackwell of Island Records fame. There’s a lovely story to this brand as Chris was one of the leading pioneers to bring Jamaican reggae music to the world. The rum has a unique punchy style, thanks to the island’s love of pot stills and long fermentation times. It is this method of production that gives this luxury rum not just added weight but a distinctive intensity,” says Gillett.

Changing consumers

Pusser’s is distributed in 30 countries. UK brand manager Peter Thornton says: “Many years ago, the stereotypical drinker (in the UK) would have been an old ex-navy chap, heavily tattooed and with a beard. This has changed over recent years, although we are proud of our (Royal) navy links. Young bartenders really want to learn about rum – its history, heritage and provenance are all key factors,” he says.

Pernod Ricard’s Havana Club claims to have the largest aged rum factory in the world and is the only truly global Cuban rum brand produced in Cuba today. Global marketing director Nick Blacknell tells Drinks International: “The good news for rum is that it’s now becoming the entry point for new spirits drinkers and has certainly taken some of the share from vodka. That’s good for the category as they are starting in rum and if we can gradually educate them, the hope is that they will stay in rum and with Havana Club as they discover the incomparable quality and unique flavour profiles that our rums provide.

“There are an increasing number of rums on the market at all prices but particularly at the higher end of the category. This presents a real opportunity to target a highly diversified audience, from the young adults discovering cocktail culture nightlife through to the HNWIs who are interested in discovering new drinking experiences of real quality and authenticity,” says Blacknell.

“While it’s true that the rum category is currently the most under-premiumised spirit category, the opportunities for premiumisation are clear to see. As the middle classes around the world continue to grow, we’re seeing an increasing number of discerning drinkers with high disposable income who are looking for authenticity and crafted quality from their drinking experiences and, as a result, the ultra-premium/prestige end of the rum category has experienced rapid growth in recent years,” Blacknell adds.

Medina García de Polavieja says: “We want to promote the versatility of this spirit. We believe it is the consumer who must decide which is the best way to enjoy our distillates.”

Botran’s Quiñones sums up: “The rum category is going through a transformation, the perception of it being a fun party drink in the standard segment will continue as the big players continue their heavy investments towards that message. However, a growing number of discerning consumers are discovering that rum is much more, where quality, history, taste and origin play a big role; it has been taken seriously and that is why the growth trend is aggressive in recent years. 

No contradiction

Blacknell says: “We see no contradiction between enjoying a rum in a relaxed easy way and the underlying quality; in fact, it’s at the very heart of what Cuban rum is all about. Havana Club’s aged rums do deserve to be taken seriously in the context of them being recognised as among the world’s top luxury spirits – up there with the likes of scotch and cognac. 

“What they represent is a more relaxed and informal approach to luxury, in line with what today’s discerning drinkers are seeking. Presenting prestige Cuban rum – and Havana Club in particular – is a great opportunity to align itself as the perfect drink for such high-end occasions.”

Euromonitor’s Malandrakis concludes: “Rum’s future will remain firmly in the hands of the dark segment in the short to medium term. Premiumisation is already more than just a left-field niche trend and it will be the vehicle of choice for entering relatively underdeveloped markets with an infatuation with all things luxury, such as Russia. 

“Stripping out India’s temporary dent in the global figures, rum will be sailing the seven seas once more. And this time it will not in be a buccaneer’s barge but in a royal cruiser.”

As author Williams says: “Rum has been undervalued as a fine spirit. It is one of life’s pleasures that more people should share.” 

Anyone involved with rum wouldn’t disagree with that.