Why rum is a good business idea
First, we had the craft beer boom. Then came the “ginaissaince”, as the spirit cast off its associations with middle-aged women, pushed its origin story, and massively increased sales. And now rum is next in line for a similar resurgence. Sales have already begun to record strong growth, with figures from The Wine and Spirit Trade Association (WSTA) showing that in 2018, almost 35 million bottles were sold in the UK, with a total market value of just over £1 billion.
Sales of white rum, a mild version of the spirit that accounts for the majority of the UK market, are actually falling, with the overall improvement driven by the increasing appetite for golden and dark rums. Golden rum is aged in wooden casks and generally has a sweet flavour, while dark rum is aged for much longer and has a more smoky flavour. Both are favoured by a new generation of rum drinkers, with sales of golden rum in pubs, bars, and restaurants increasing by 7% from 2017 to reach £374 million. Moreover, the number of rum brands on the UK market increased from around 50 in 2006 to nearly 200 in 2018, underlining the rapidly increasing popularity of the spirit.
WSTA figures also show that flavoured and spiced rums are recording strong sales growth – with 10 million bottles sold in 2018 – as drinkers seek new creations with novel flavour profiles that replicate the cocktail experience.
John Smith, the owner of Exmoor Distillery, a craft gin producer which is currently preparing to launch a rum made in-house from fermented molasses, notes that this growth is being driven by new drinking habits among younger consumers: “Although millennials drink less, they seek higher quality drinks and are known to be much more exploratory with new spirits and drink trends. Rum is becoming more of a premium and diverse product, which are qualities a lot of millennials seek when choosing a bottle from the shelves”. This chimes with research Harris Interactive conducted for The Grocer, which found that nearly 80% of 25-34 year-old spirit drinkers are partial to rum, as opposed to just over half of those aged over 55.
Bartenders are also central to this spirit of discovery, as Pete Holland, Global Brand Ambassador at That Boutique-y Rum Company, points out: “We have a highly motivated group of bartenders who are actively seeking out new flavour experiences to work with, and this helps the demand, which in turn showcases the rums.” One of this new breed, Sly Augustin, owner of London’s Trailer Happiness tiki bar agrees, saying that “the number of producers making traditional unaltered rum has increased alongside the public’s curiosity, meaning our selection has increased considerably,” and “we don’t have enough space to house all the rums we’d like to.”
via https://www.AiUpNow.com/ by Alec Hawley, Khareem Sudlow
