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World Spirits Report 2024: Rum
The drinks industry has been banging the drum for the ‘rise of rum’ for a few years now, but there are still some teething issues as the category grows out of its old party reputation.
Premiumisation is acknowledged as the way forward, but challenges around regulation and education persist. IWSR’s US navigator reveals that the value price tier for rum between 2019 and 2024 declined from 52% to 42% in volume share, while premium-and- above has only increased by 1% from 6% to 7%. Meanwhile, dark rum has been singled out for driving premiumisation within the sector. An issue that brands are encountering is the lack of a standardised framework for rum production.
Marten Lodewijks, president of IWSR’s US division, explains:“It makes it harder for brands to convey a quality ladder across rum products.” Christian Barré, CEO of Pernod Ricard-owned Cuban brand Havana Club, one of the world’s top-selling rum brands, is finding this his biggest challenge too. He believes clear regulations and classifications are needed to help drinkers navigate the category and “understand the nuances between regions to further establish rum on the global stage”.
While the category’s performance has been a mixed bag in the US, brands are enjoying sharing their stories that come with increased consumer awareness. Trudiann Branker, master blender of Mount Gay, says “one of the most exciting trends in the rum category is the shift towards premium, terroir-driven rums”. Moreover, the cocktail renaissance is also aiding the category’s growth, Branker notes.
Nelson Hernández, master distiller at Venezuela’s Diplomático, confirms that the rise and development of cocktail culture in recent years has “positively impacted the premium rum category’s growth”.
While eagerness might be there, the level of education is still some way off compared with other spirits such as Tequila. Branker notes that a key challenge is “overcoming outdated perceptions – for a long time, rum was seen as a spirit for mixing, or one associated with tropical vacations, rather than as the complex, premium product it is, to be savoured like whisky or Cognac. For instance, there is a misconception that rum is sweet, because it is made from sugarcane.”
Outside of the US, sales of rum surpassed £1 billion (US$1.2bn) in Great Britain’s on-trade, where interest continues to climb, with IWSR estimating 8% growth for super- premium-and-above rums (CAGR 20222027) in the UK. Dark rum is experiencing a surge in popularity in Great Britain’s on-trade, with its value increasing by 5% last year, says CGA.
Georgia Billing, Diplomático’s UK brand ambassador, says of the UK: “We have seen on-trade sales of rum rivalling those of whisky, with premium and super-premium rums particularly popular.”
Barré is also seeing untapped opportunities in new markets including China and Turkey, alongside “accelerator” markets such as Mexico, Benelux and Thailand.
Rum brands to watch in 2025
Bumbu
According to Nielsen data for the 12 months to 9 September 2023, Bumbu was the biggest- selling superpremium rum in the UK. It has become a household name with presence in major supermarkets and pub chain JD Wetherspoon. Armed with rapper Lil Wayne as its brand ambassador, expect the momentum to continue, with backer Pernod Ricard having highlighted ‘good results’ for the brand in its fiscal 2024 results.
Ron Del Barrilito
Ron del Barrilito might be described as Puerto Rico’s oldest rum brand, but it has been handed a new lease of life after gaining investment from Spirit of Gallo. Gallo, which previously distributed Diplomático, will be Ron del Barrilito’s exclusive US importer – marking the company’s return to the super-premium rum category. And the intention is loud and clear: “To help it reach its full potential in the US,” says Britt West, chief commercial officer at Gallo.
Pampero
The purchase of Pampero from Diageo could be an astute piece of business for Gruppo Montenegro. Venezuelan brand Pampero was the number-one rum in Italy by volume, according to Diageo. Is Diageo’s loss Gruppo Montenegro’s gain? Paul Douek, executive board member, is confident that the brand “will significantly enhance our growth trajectory both within Italy and on the international stage”.
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