10 minute read
RUM CATEGORY READY TO FIRE
Rum category ready to fire
With a richer domestic craft scene than ever before, and continued strength in the imported category, the long-awaited rum revival may finally be with us, as Seamus May discovers.
Both at home in Australia, and in overseas heartlands, the rum category continues to produce innovative products capturing the imagination, while a focus of provenance brings greater authenticity.
A mixed picture for growth
According to IRI, the total rum category has seen a value growth of 0.2 per cent over the last 12 months, with this largely driven by a 2.1 per cent increase in the dollar value of spiced rum. This value growth has been accompanied by a volume increase of 1.3 per cent. However, dark rum shrank by 1.1 per cent in value, and by 1.6 per cent in volume, albeit from a larger base than spiced rum.
Imported rum has gained momentum in the last year, increasing by 1.4 per cent in dollar growth, with the category worth $227.6m. This value growth has been accompanied by a volume increase of 0.1 per cent, suggesting that premiumisation continues to be a strong driving trend in the imported rum category.
One imported rum brand that demonstrates this growth trend is Bacardí, as Brand Manager, Colton Salter, outlines.
“Bacardí Carta Blanca continues to outperform year on year with the spirit still growing 7.9 per cent value MAT versus a huge last year cycling COVID sales. Bacardí’s iconic rum portfolio continues to grow globally and locally within Australia,” Salter said.
“The light rum category has been performing extremely well this year growing at 12.3 per cent MAT and has recently overtaken vodka as the second fastest growing spirit behind tequila.”
On the contrary, domestic rum value fell by 0.8 per cent to $288.5m, with a volume decline of 0.9 per cent in the past year, according to IRI.
Mitch Townsend, Flor de Caña Brand Ambassador, outlined how the category has premiumised in recent years, referring to a 2021 IWSR study: “People have started exploring more premium rums and the premium (+13.7 per cent growth), superpremium (+18.1 per cent growth) and ultra-premium (+73.1 per cent growth) rum segments have all benefited from the trend.”
While these statistics present a mixed picture for retailers, there remain opportunities to be had in the category, including among craft producers that are growing from a smaller base.
Australian rum’s new wave comes of age
As Australian distillation has undergone a renaissance over the previous decade, the rum category has perhaps slightly lagged behind its siblings in the whisky and gin categories, as Husk’s Master Distiller and Founder, Paul Messenger, notes.
“It seems like the rum category has been on the brink of a ‘renaissance’ for at least 10 years but much of the premiumisation seen in other categories like gin, whisky and agave, driven by premium imported and local craft brands, has largely bypassed the rum category which remains dominated by mass market standard brands,” Messenger said.
-Paul Messenger, Master Distiller and Founder Husk
But according to James Christopher, Operations and Collaborations Director at Sydney’s Brix Distillery, craft rum is no longer the poor relation.
“Australian craft rum is starting to solidify its place in the market. Currently, there are around 300 craft distilleries around Australia producing a variety of spirits and we are seeing more and more of these starting to produce small batch rum,” Christopher says.
Part of the reason for this delay has been a simple matter of maturing the spirit for release as a fully aged product.
“Brix has been producing spirit for the past four years and up until now, we have released unaged rum and spiced rum, as well as our imported blend from Barbados, to fill the void for the first few years while we mature our own products,” Christopher explains.
“As has occurred with the gin and whisky category, consumers are looking for new products and are happy to spend a little more on an Aussie bottle if they know the quality is there,” Christopher says.
“They are becoming more educated on rum styles and know the challenges that small distilleries face with overheads and excise tax.”
This assessment is shared by Dave Withers, Master Distiller at Archie Rose, which has recently stepped into the category. “It is an exciting time for the category,” Withers says. “I think the rum category is still in its age of innocence, just as whisky was a decade ago. Spirits lovers and bartenders are really starting to notice that you can grab top quality spirits for a fantastic price.
“Many of these rums have the same deep care taken to create flavoursome products that other spirit categories do.”
For Messenger, the recent rehabilitation of agave spirits provides an indication of where craft rum is headed. He said: “The close similarity between agave spirits and agricultural or juice rums suggest the potential for a rapid increase in interest in this unusual style of rum.”
Telling a local story
For Australian craft rum producers, using native and local ingredients provides their spirit with a compelling narrative that connects with consumers.
“When we started the company, we decided on a local-first sourcing policy, which for us means that whatever we are looking to purchase, we always look to our own backyard first,” Christopher says.
“Barrels are another way we can tell a local story with our products. We only use barrels that have held Australian beer, wine or spirits prior. Purchasing these barrels keep the dollar in the country and helps other makers with cashflow in selling an item that may not have life left for them.”
-Dave Withers, Master Distiller Archie Rose
Withers echoes Christopher’s outlook, saying: “Australian producers are making great products that speak of their experience of being Australian.
“The spirit, therefore, reflects the place it came from in the taste preferences of the locals, the local raw materials and local distilling traditions.”
Australian distilleries are also capable of innovations as Lynda Hannah-Williams, Distiller at Bingil Bay Distillery (which specialises in vacuum distillation), illustrates.
“Bingil Bay Distillery make our own cane spirit base and feature local tropical and rainforest botanicals. Vacuum distilling protects the delicate tropical botanical flavours,” Hannah-Williams, says.
Bingil Bay calls this process ‘sub-atmospheric’, as it is performed at lower pressures, meaning energy is saved and “the flavours are preserved, and delicate ingredients are not stewed at high temperatures for prolonged periods.” The distillery’s rums (and gins) are slated to hit the market later this year.
“Bingil Bay Distillery and other smaller producers provide the consumers with what they are looking for - choice and variety. The sub-atmospheric process is truly unique and innovative. Consumers are seeking out premium and unusual products to add to their collection,” Hannah-Williams, said.
For Christopher, the diversity and innovation of domestic rum makes it a powerful option for retailers, as he says: “Australian rum has all the ammo in its artillery, we are ready to fire!”
Australians look to agricole for inspiration
A particularly interesting rum phenomenon is the development of agricole-style spirits in Australia, given the name Australian Cultivated Rum (ACR), or more simply, ‘juice rum’.
For the uninitiated, this rum (known as ‘rhum agricole’, or ‘agricultural rum’), is largely produced in the former French Caribbean colonies and made of the fermented juice of sugar cane.
Husk is one Aussie distillery producing these spirits, and Messenger provides more detail.
“ACR rum is strictly seasonal. ACR rum can only be made in a cane growing region with direct access to freshly crushed cane juice during the harvest season because juice cannot be stored or transported. Unlike molasses or malted whisky wash, cane juice is full of living wild yeast cells that start to ferment the cane from the moment its cut,” he said.
“Making seasonal agricultural rum is the only way to reflect provenance and our goal is to capture our terroir, our provenance, our lifestyle and identity in our spirit.”
Archie Rose has produced similar spirits under its Virgin Cane Spirit label, and as Withers explained: “The flavour produced is quite different and is reminiscent of the fresh sugar cane juice - think grassy and herbal.
“We really wanted to reflect on the land that the sugar cane had grown on. I felt that it was important to hero the local NSW sugarcane and create a full flavoured spirit that spoke of the raw material and land it came from.”
And Withers believes that these rums also capture the interest of consumers.
“Discerning drinkers are on the hunt for better quality, aged rums and are showing a keen interest in the origins of the raw materials, which in our case is sugarcane,” he says.
Imported rums offer escapism
The growth of Australian craft rum appears irrepressible but imported rums will always play a crucial role in any retail portfolio. Just as the homegrown industry now offers diverse styles, international rum too provides an array of flavours from across the globe.
Jordan Ashleigh, Brand Manager for Proof & Company, believes both categories will have a role to play in the muchanticipated rum resurgence.
“Rum is thought to be on the brink of a long-awaited renaissance, fuelled by premium international and local craft brands,” Ashleigh said.
“With greater ranging of imported rum, like Diplomático Reserva Exclusiva, comes greater intrigue in the category as a whole, allowing consumers to experiment with new flavour profiles and signature serves otherwise missed.”
According to Ashleigh, Diplomático Reserva Exclusiva remains “the number one fastest growing brand in the super premium rum category.”
History is one thing that certain imported brands offer that is not provided by most local distilleries.
“Our focus has always been on our rich heritage and the stories behind what makes our spirit the world’s most awarded rum,” says Bacardí Brand Ambassador, Loy Catada.
Townsend concurs, saying: “Companies like Flor de Caña have a rich history of rum making for over 130 years! This allows us to sell older and more premium spirits at an affordable price.
“We are also aiming to elevate our brand profile in Australia with a focus on the Flor de Caña 12, 18 and 25 year old.”
The exoticism inherent to many imported rums offers retailers a means of connecting with drinkers.
“Bacardí’s ties to the Caribbean also offer our consumers a fun way to be able to recreate their favourite holiday cocktails while still being in the comfort of their home,” Catada says.
“Rum can offer a great refreshing classic cocktail like the mojito and can also offer a lower tempo ‘whisky style’ occasion with aged sipping rum.”
Rum’s versatility, Catada says, “can also make it confusing for consumers, especially there is no organised system in the retail space to help navigate the rum shelf.
“Retail stores could also adopt a system to group rums according to flavour, colour and age, allowing for the shopper to be educated on what they are buying and feel confident to consume at home.”
