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ALTHOUGH MANY PR companies are dubbing 2018 ‘the year of rum’, it’s a woolly statement. But there is evidence to suggest it could be the year the category’s premium sector flourishes. However, premium is not just one level any more. Category leaders have taken on the responsibility of marking their premium stamp on the middle ground, in the same way premium car brands have many options at a wide range of price points. In order to justify having different levels of premium rums, the products need an abundance of versatility.

In Drinks International’s rum supplement last December, Anistatia Miller and Jared Brown produced an in-depth report on the origins of Cuban rum, and the feeling is that the history and traditions within one style of rum are on a par with just about any other spirit. Rum is also more diverse, more international and more accessible than gin, tequila and arguably every other category. The biggest difference between rum and other spirits is that now the category is going through a serious period of organisation.

Sly Augustin, owner of Trailer Happiness tiki bar in Notting Hill, says: “For me, every year is the year of rum. But I think if we look at it in terms of 2018 being the year of premium rum, that could be a thing. The premium category has been dominated by certain brands for a number of years and I think potentially this year we’ll see other brands challenging this perception.”

NOMAN’S LAND

In response to this movement for premiumisation in rum, big brands which already have a premium range have now targeted the middle ground, attempting to develop the area between the top end and the bottom end. Bacardi has recently launched Cuatro, to sit between Carta Blanca and Ocho in its core premium range.

Sarah Doyle, vice president of marketing at Bacardí Europe, says: “It’s probably the biggest extension to the Bacardí range in history.

“Cuatro is an accessible, premium rum, which can hopefully introduce more people to the spirit. It’s important to respect and understand that people might not want to go straight in with a super-premium, heavily aged rum right away. We don’t want to shut people off from the rum category.

“I think rum has been terribly misunderstood. It’s probably the most complex category so it’s important to ensure every area of it has a premium option.”

ARTISANAL

Nick Blacknell, international marketing director at Havana Club, adds: “We saw the number of artisanal, smaller premium gin brands boom in the UK in recent years and now the same is happening with rum. It is essential for these smaller, premium rums to be successful in order for the category to thrive.

“At the moment we’re thinking in three-year planning cycles – the short-term plan is to massively increase the sales of Havana 7, in which we see huge potential, while our long-term aim is to target the craft and luxury rum sections.”

An example of how artisanal rums are becoming a significant movement is Dos Maderas, a brand which blends aged rums from Guyana and Barbados.

It ages its rum in ex-bourbon barrels in the Caribbean before shipping it to Spain to be finished in ex-sherry casks. This is the level of detail which screams premium.

Gonzalo Medina, international marketing manager for the brand, believes this ageing process makes Dos Maderas a unique rum, which is an important trait for any brand sitting in the artisanal section.

Blacknell also points out that the big brands are selling well. Interestingly, this could give the category stability and therefore retain its popularity in the on-trade. Doyle from Bacardí is quick to point out the popularity of Ocho among bartenders. However, according to DI’s Annual Brands Report, Plantation rum is the top trending brand among the industry’s most influential bars. This shows that ultimately, artisanal is cool.

Augustin says he has seen a lot of smaller producers gain more traction in his bar and, in response to this, big brands are also launching or acquiring artisanal labels.

Bacardí’s Santa Teresa is gaining popularity in the on-trade and is proud to talk about the use of its solera process to speed up the ageing of its rum, a technique which has been criticised in the past for short-cutting barrel ageing.

As well as its willingness to bring clarity to its product, Santa Teresa offers a strong back story to its followers. Its Project Alcatraz was set up in 2003 to offer Venezuelan young offenders the chance to avoid prison time by working for free in the production of the rum, and joining the Project Alcatraz rugby team.

Augustin believes this artisanal movement will allow categories such as aged agricole to thrive this year and that its popularity will also benefit from its favourable market value compared to the top end of the scotch whisky category, which he says have reached “ridiculous levels”.

LAW & ORDER

One big issue hindering the organisation of the category’s premium sector is the global regulation of rum. The ongoing dilemma is how rum can be regulated in the same way that whisky or French spirits are.

The difficulty with this is that there are different brands which abide to the regulations in their home country and export their products overseas into a different set of regulations.

This makes it difficult to regulate what a rum is and what has to be declared on the label. During Bar Convent Berlin last year, global rum ambassador, Ian Burrell pointed out that certain brands are beginning to remove the word ‘rum’ from their packaging in an effort to avoid controversy when a product is exported to a country with different legislation.

Medina at Dos Maderas says: “Age statements provide a guarantee for the consumer, a way to certify the age of rums on the market produced under strict controls that accredit the ageing process employed by the category.”

Unless something is done to regulate what defines a rum, specifically in the premium sector, then brands will continue to blur the lines and this could potentially devalue top-end rums if the issues aren’t resolved.

Augustin adds: “A lot of people say there isn’t enough legislation in the rum industry, but to me that’s irrelevant. You shouldn’t need these rules to be honest with the consumers.

“I feel as though the rum enthusiasts are taking on that role of regulating the category themselves. They’re effectively the board, and if they see a brand misbehaving then they’ll call it out and we’re seeing a lot of producers getting caught out for using misinformation on their rums.

“I’m not here to alienate brands and I don’t want it to become a war, but a discussion. There are a lot of brands which don’t want to be the first to admit what they do, but actually I think if they do reveal their methods more openly, then it could have a more positive response.

“It’s really important for the trade specifically to understand and maybe reclassify different rums. Richard Seale (of Foursqure Distillery) and Luca Gargano (of Velier rum) have proposed quite a simple and verified way of looking at rum, which I think makes sense to the veteran rum drinkers and the new ones.”

COLOUR CODING

Aside from just its origin, the colour of a rum can often be misleading, specifically for the premium sector.

Augustin says: “When I first heard that you wanted to talk about dark rum I thought ‘what is dark rum?’. The term ‘dark rum’ doesn’t say anything about the rum other than the colour, which can be effected in an all manner of ways.”

It is a common technique used across every brown spirits category to add caramel colourings to make a spirit appear older, and therefore more premium. But to gain genuine clarity in the top end of rum, the mentality towards its colour needs to change. “Ultimately we need to get away from the idea of rum being a colour,” says Augustin.

YOU’RE HOW OLD?

The appearance of rum isn’t solely led by its colour. Its labelling should be an indicator of a rum’s style, ingredients and how it is made. But this can definitely be misleading – often deliberately.

For example, the number on a bottle of rum can mean anything in some markets. It can have no relevance to the age of a rum and it is used by some brands to give the impression of an older, more premium product.

This is probably the most disputed area of the rum category, and may continue to frustrate premium brands which are honest about their products.

Burrell also pointed out in Berlin last year that he wants people to acknowledge rums for the styles they have according to their origin. For example, Caribbean rums carrying different characteristics than Mauritian rums.

Augustin says: “I think the consumers who come to Trailer Happiness are more likely to ask for a specific rum. It’s very brand-led and then our bartenders will try to recommend different rums with a similar style.”

Blacknell from Havana, says: “We would welcome education on different styles. We think that’s super interesting to understand and that’s why we’re putting our focus on bartenders.”

ONE OR TWO SUGARS?

Another way the rum category is being organised is through the development of different levels of premiumisation.

France has a clear premium structure to its spirits through its ageing statements such as VSOP and XO etc, which therefore determines the value bracket of a product.

This, however, is less obvious in rum. Some brands believe they are premium even if they use additives, for example to sweeten their product, and Augustin thinks this is causing problems for the definition of premium.

“There are two main issues with sweetened rums,” he says. “First it’s clarity. Do consumers know what is being put into the rum and subsequently, if a product is being marketed as premium, can it truly be this if a load of additives have been used to make it look and taste a certain way?

“What happens is we end up with brands blending and creating rums in a pure and honest way, putting in a lot of man hours, up against a quick-fix solution. So, is it really fair for these rums to go into the same category?

“Also, I don’t think the issue with sweetened rums is the fact that they have had ingredients added, it’s more that brands aren’t being honest because of the pressures in the rise of premiumisation and that creates a lack of clarity in the category.”

Ultimately, the premium rum category needs a thorough sort through if it wants to become the ‘new gin’, but with a seeming lack of leadership on the issues, it looks like the sector will have to rely on morals and brand honesty.

Augustin adds: “In terms of cocktails, because the premium sector is booming we don’t really want to hide the flavours of these rums from the consumer too much. This means we’re using much simpler cocktails to keep our consumers engaged in the category.”

TIKI TIME

“Generally, stirred cocktails are on the rise and less so the vibrant, fruity ones. But as a tiki bar we still go through a lot of these styles of drinks.

“This year marks the 15th year of Trailer Happiness and I can confidently say it’ll be our greatest ever. The menu will be bigger but not indigestible and it’ll feature old and new. It’ll have something for everyone. I’m hoping it will be a representation of where the rum category is at the moment.”

The popularity of premium, artisanal and small-batch rum will undoubtedly rise in the coming months. And if brands truly want to dominate the premium sector, then every level needs to be coveted.