Rum producers turn away from the US
Having suffered a sales slump in the US, rum producers are looking away from the country to facilitate growth.
*This feature was originally published in the June 2025 issue of The Spirits Business magazine.
“The worst thing that could happen to my brand is to be super trendy, super fashionable,” says Gregoire Gueden, president of Spiribam, and the CEO of the spirits division of Groupe Bernard Hayot (GBH).
The portfolio includes St Lucian rum brands Bounty, Chairman’s Reserve, and Admiral Rodney, as well as Rhum Clément, and estate-grown agricole Rhum JM from Martinique, and Mauritian brands flavoured rum Beach House, and Arcane, which is focused on the terroir of the island.
“I’m building year after year the stones of buildings that will still be there in a couple of centuries,” adds Gueden. “The big guys – those who are driving the big numbers of the category – probably invested too much in party, too much in trendy, new flavours, and so on. But the party is over, and the hangover is that there is nothing concrete behind them.”
The party may be over, at least for flavoured rum. IWSR data reveals a complex picture for a spirits category that always seems to be one step behind its true potential. Over the past five years rum’s underperformance in key market the US, led by losses in flavoured, alongside a lack of premiumisation and a shortage of new brands, is concerning.
Flavoured rum hit hard
Rum fell into decline from 2022 to November 2024, with all subcategories posting volume loss, IWSR US data showed. But flavoured rum – the largest subcategory, accounting for 43% of total US rum volumes – saw the worst decrease. Diageo’s results for the second half of 2024 – which showed a 12% organic sales drop for Captain Morgan in North America – backs up what is being felt more widely. From January to July 2024, US rum volumes fell by 5% year on year, ahead of total spirits, which were down by 3%, adds IWSR.
While premiumisation is happening, it is at lower price tiers than whisky and Tequila, with most occurring between value and standard price tiers, IWSR notes.
With white and flavoured rums unable to premiumise beyond the standard price segment, dark rum alone has been leading the elevation of the category; premium-and-above variants increased their share from 11% in 2019 to 17% in 2024.
But with no standardised framework that indicates quality or set requirements for production, it’s hard to ask consumers to progress through price points en masse.
So, what happens now? Where should rum look to for growth? Not in the US, it seems.
“We are expecting the rum category to grow,” says Jose Luis Hermoso, IWSR research director South and Central America, “but largely driven by the leading volume markets for the category, India and Philippines. Most volume sits at the inexpensive end of the market.” Combined, these markets represented 45% of the category’s global volume, yet accounted for less than 20% of value.
“The leading value market for the category, the US, is losing volume and value, and this will be a worry for companies trying to play in the premium-and-above rum segments,” he adds. “In the US, France, and the UK, the most important markets for premium-and-above rums, we are forecasting category declines. Premiumisation will continue in the category, however. Spain, Mexico and the Dominican Republic are losing volume, but increasing value.”
The barriers for consumer recruitment are challenging, adds Hermoso. “Rums have always suffered, and will continue to suffer, from different age-statement standards and meanings, and resulting consumer mistrust. Unlike Scotch or Cognac, where you know exactly the minimum age of the liquid you are buying, no one really knows how much 23- or 21-year-old rum there is in a bottle with these numbers on the label.”
Pernod Ricard says it is seeing strong growth for Cuban rum brand Havana Club in its historic strongholds – Germany, France, Spain, and the UK. While markets such as Southern Europe, including Italy and Greece, are providing solid performance, eyes are on Mexico and Benelux, its “accelerator” markets, where super-premium is being well received, and brand growth is outpacing the wider category, it says.
Recent launches have included a new edition of its Icónica Collection, Tributo, which is finished in Irish whiskey casks from Pernod Ricard-owned Redbreast. Borrowing from whisky’s premium cues, and described as a first-of-its-kind collaboration, its 2,967 individually numbered bottles are aimed at “collectors, connoisseurs, and cigar aficionados” says Nathalie Parte, global marketing director.
The Icónica line launched in 2016 to honour Cuba’s heritage and rum culture. Activations for its three permanent Prestige expressions will begin in Germany and France in the coming months.
New audience
Other recent launches include jewellery designer Jonathan Raksha on a limited edition Havana Club Añejo 7 Años. The Toronto-based goldsmith is known for creating grillz (teeth jewellery) for Rihanna, A$AP Rocky, and Post Malone, and attracts a new audience to the brand.
“Beyond our bottlings, cultural relevance is central to how we connect,” adds Parte. “It’s clear that rum has only just begun to realise its global potential. Looking ahead, emerging markets in Asia offer significant potential, powered by rising demand for premium spirits. We see strong growth potential in Asia, the Middle East, and Africa. There is clear opportunity to elevate consumer understanding through better category education and clearer classification systems.”
But with a confusing array of individual geographical indications (GI), DOPs and more, what exactly is a premium rum in 2025? And can anything beyond dark rum be one?
In late 2022, Angostura launched Zenith. Its rarity, with just 195 bottles available, helped it command a £3,000 (US$4,046) price point. Age, and again, a glance to the whisky category, helped assert quality; Angostura and Caroni rums were aged in charred American oak ex-Bourbon casks for 20 to 23 years. More recently, it added Cusparia 21-year-old rum, which was designed for Angostura’s 200th anniversary last year. Cusparia Rum is a blend of assorted aged rums, with the youngest being 21 years old. It was finished for three months in Bourbon, Madeira, and Cognac casks, which are then blended together. The rum will launch internationally in the third quarter of 2025.
“While elevating the rum experience through premium packaging and rare blends is important, we also see growing interest in the origin, craft, and heritage behind brands,” says Lawn Davis, marketing manager for Angostura Limited. “Consumers want to connect with true narratives, and Angostura, with over 200 years of history, and a legacy rooted in Trinidad and Tobago, is uniquely positioned to meet that demand.”
As for future launches: “What stands out is the increasing focus on blend uniqueness, ageing techniques, and the exploration of diverse cask finishes, where Angostura is investing to deliver differentiated experiences.” Further launches are in the pipeline. Davis says cocktail culture is helping to elevate premium white and gold rums.
Jamaican rum
In Jamaica, Campari’s Appleton Estate brand helped lead the charge for a GI in 2016. Recent – and contested – amendments now prohibit ageing rum overseas. Raul Gonzalez, managing director of Campari’s House of Whiskey & Rum, says first-quarter organic sales growth of its Jamaican rum portfolio is up by 5.2% globally, following supply disruptions from 2024’s hurricane. Last year it launched Hearts Collection 1998, a 26-year-old rum, at the £500 mark; 19 barrels were selected to form the blend. The range of limited edition 100% pot still rums are becoming a fixture for collectors. Appleton just celebrated its 275th year of distilling.
“We know that vintage and single cask releases are a draw for dark spirits connoisseurs,” says Gonzalez. “Our incredible archive of ageing rums, which is one of the largest in the world, allows us to explore the breadth and depth of what rare rum can be.”
The brand is eyeing up markets where Scotch performs well, including the UK, Switzerland, Germany, Western Europe, Singapore and South Korea. “We find that many dark spirits drinkers are surprised by this heritage in aged rums, the challenges of tropical ageing and what is needed to bring high-aged rums to the market, especially for Appleton and others, where every drop of our rums is minimum aged. Focusing on education to welcome in new consumers is important for us to unlock new growth.
“Looking at categories like Bourbon, we see a flood of innovations and limited offerings, which we don’t see on the same scale with rum. I believe we are seeing a slower rate of innovation because the consumer demand is still catching up.”
At Brown-Forman, David Palacios, global PR and communications manager for Emerging Brands (which includes Diplomático), adds that terroir is becoming increasingly important. “Drinkers seek authenticity, craftsmanship, and elevated experiences,” he says. “We’ve seen this shift first-hand. While dark rum leads, innovation across aged white rums, spiced expressions, and sustainable, single-origin offerings is expanding the category. As consumers become more educated and curious, they’re rewarding brands that offer transparency, storytelling, and a genuine connection to origin.”
He says Diplomático still has significant room to grow, with the focus on expanding awareness, availability, and trial in its key markets of France, Germany, and the US. But the company is also eyeing “strong potential in emerging premium rum markets” like Italy, the Nordics, the UK, Spain, Mexico, Australia, and in global travel retail.
So what of flavoured rum? “The slowdown in flavoured rum is part of a broader shift in consumer preferences rather than a setback. It isn’t unique to rum,” says Lisa Pfenning, Americas vice-president of Bacardí Rum. “It’s less about modifying taste, and more about a deeper connection to the story and craftsmanship behind the bottle. While flavoured rum still holds a place in our portfolio, innovation in this space must now meet a higher standard — think natural ingredients, elevated flavour profiles and thoughtful execution.”
Like Diageo – and the wider spirits market over the past few years – it is using ready-to-drink offerings (RTDs) to recruit consumers and “meet them where they’re at”. In Europe and Mexico, it added Bacardí Mixed with Coca-Cola RTDs. In a notable sidestep, Diageo’s Captain Morgan Tropical Muck Pit Brew straddles the beer category, made with brewed fruit, rum and hops.
Mark Sandys, chief innovation officer at Diageo, says “insights into the evolving ways that consumers socialise today”, combined with inspiration from traditional muck pits where fruit was fermented in the Caribbean, inspired the launch.
But there are different ways to approach flavour. Launched in 2023, Bacardí Ocho Sevillian Orange is aged for at least eight years in American oak barrels, then finished for three to six months in Vino de Naranja casks from Seville, Spain, imparting orange peel, stone fruit and smoke notes. It “demonstrates that premium can take many forms beyond the traditional”, adds Pfenning.
But one of its main strategies for growth is tapping into “cultural crossovers”, aimed at reaching consumers who may not have considered rum before.
Bacardí has partnered with NBA star Jimmy Butler and his Bigface coffee brand, creating the Café Con Ocho serve with Ocho rum, coffee, and salted caramel for an elevated take on the Espresso Martini. This summer, a Colada Club will reach 14 US markets as five bartenders per city craft original Piña Colada riffs. Over 70 recipes will be added to a national microsite.
“At the heart of all these efforts is a clear goal: to bring new consumers into the world of rum by shifting perceptions and showing that rum is versatile, premium and deeply rooted in authentic storytelling and cultural connection,” adds Pfenning. “When fewer products and brands are highlighting the rich craftsmanship, ageing process, or storytelling that make rum so distinctive, it becomes increasingly difficult to capture attention and sustain momentum. We see this as a call to action.”
How is your company addressing sustainability in your sourcing, production or packaging?
Audrey Bruisson – brand advocacy director, Spiribam
“Our priority is always to ensure our sustainability commitments are clear and meaningful to consumers. Spiribam brands work with a trusted network of certified, sustainability-conscious suppliers for its dry goods. Rhum Clément has been certified ISO 9001 and ISO 22000 in 2021 and finalised its carbon footprint assessment in 2023. On the production side, our Fonds Préville distillery in Martinique earned Bonsucro certification in 2023 after years of promoting our EDDEN project (Engaged for the Development and Durability of our Ecosystem and Nature) with Rhum J.M. Finally, Saint Lucia island, home for Chairman’s Reserve rum (among others) obtained its GI [geographical indication] in late 2024.These milestones reflect our ongoing commitment to improving sustainable practices. More developments are on the way.”
Chiara Pennacchio – global marketing director, Ron Barceló
“Ron Barceló controls 100% of the stages, from harvesting to bottling and sustainability as part of our DNA. We have recently been accredited as a B Corp-certified company, and at the same time our distillery has received the Bonsucro endorsement. All of this began in 2016, when Ron Barceló was the first rum brand certified as carbon neutral, and therefore in the area of packaging we have reduced the grammage of our packaging without jeopardising the quality, as well as re-using the residual fibre of the sugarcane for the elaboration of the case of our organic rum. At Ron Barceló, under our sustainability code RB 360, we make a circle effort to align our production with environmental and social wellbeing.”
David Palacios Jaramillo – global PR manager, emerging brands, Brown-Forman
“At Diplomático, sustainability has been at the heart of our rum production process. The distillery where our rum is produced operates with a zero-waste liquid management system, transforming potentially harmful by-products into nutrient-rich fertiliser used in local sugarcane fields, and by nearby farmers. On the trade front, we are committed to fostering environmental responsibility through our advocacy platform, Artisans of Taste. This initiative educates bartenders and spirits professionals about sustainable practices, such as repurposing waste in cocktail creation, and sourcing ingredients locally. Active in 12 markets, the programme has already reached over 600 industry professionals, with plans to expand its impact in the coming years.”
Richard d’Offay – co-founder and managing director, Takamaka
“For us, being 1,000 miles from anywhere, in the middle of the Indian Ocean it must be a combination of tried-and-tested and innovation. Offering our Rum Blanc in three-litre pouches specifically for creating batch cocktails is impactful to the supply chain footprint. Equally, moving our molasses distillery to be run from solar has meaningful long-term benefits. There are so many steps that are possible, we need to be determined, willing to listen, learn, and, hopefully, always improving.”
Yannick Noel – rum business unit and export manager, New Grove Distillery (Grays Inc)
“For years, New Grove Distillery made a mark through innovative and sustainable solutions. Our boiler runs on non-potable alcohol from our distillery – a renewable energy source. We transform distillation by-products into biofertiliser. We capture rainwater , which meets up to 50% of our needs. We have installed photovoltaic panels that cover 70% of our electricity needs. We are official operators and climate partners of EcoSpirits technology in the Indian Ocean region. In 2025, New Grove released the first rum distilled from organic molasses in Mauritius. The choice of New Grove’s rum packaging also plays an important role: FSC papers, vegetal inks, collaboration with local suppliers committed to sustainability; these are essential, and reinforce our position.”
Nathalie Parte – global marketing director, Havana Club
“A circular economy is integral to the Cuban way of life, and we live by this at Havana Club. Our EcoPlant at the San José distillery operates a closed-loop system that has reduced bottle imports and cut glass waste by 99%, driving an 88% reduction in carbon emissions related to premium packaging. Over 5,000 solar panels now power 75% of our daily operations, with excess energy redistributed to local communities at no cost. Beyond this, our Mangrove restoration project in Cuba is set to protect over 7km of coast and capture 17kt of CO2 per year. We also reuse vinasses – a by-product of rum production – to create fertilisers and animal feed, supporting 1,000 hectares of farmland every year.”
Carl Churchill – CEO, V Rum
“Sustainability is part of our ethos built into every decision we make. We take a transparent, no-greenwashing approach, starting with packaging. Our bottle labels are 100% recycled, made from 95% sugarcane and 5% hemp. We’re now sourcing UK-made, 100%-recycled glass bottles to reduce emissions, and our FSC-certified cardboard packaging comes from a local supplier using 90% recycled, fully recyclable material. Our distillery runs on 100%-renewable electricity via Ecotricity, and where emissions can’t be avoided, we offset through Ecologi – supporting reforestation and verified global CO₂ reduction projects. Sustainability is a responsibility we take seriously, and hold ourselves accountable with an annual public impact report that shows the steps we’re taking to craft rum responsibly.”
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