Malibu Seeing Rapid Growth From New Flavor Extensions

Since kicking its innovation efforts into high gear in recent years, Pernod Ricard’s Malibu rum has recorded strong U.S. growth, rising by 7.2% last year to reach 1.87 million cases. The brand has been bolstered in part by the success of its Malibu Black and Malibu Red extensions, rolled out in 2011 and 2012, respectively. In their relatively brief time on the market, both offerings have surpassed the 100,000-case mark, according to Malibu brand director Lisa McCann.

Malibu Black is a 35%-abv offering, compared to 21% abv for the core Malibu brand. Priced at around $16 a 750-ml., it’s targeted at young LDA males. “The concept has definitely opened up a new opportunity,” says McCann. “The higher proof point allows us to get into a later-night occasion and also appeals to the male consumer.”

Malibu Red, a fusion of Tequila and Malibu rum, is also at 35% abv and retails at $19. Malibu Red launched early in 2012 and has been backed by R&B artist Ne-Yo. “Having a celebrity partnership with Ne-Yo has opened us to a new consumer that we weren’t able to really talk to effectively before,” explains McCann, adding that non-traditional rum markets like Atlanta, Philadelphia and North and South Carolina have demonstrated strong interest in Red.

This year, Malibu has accelerated its innovation pace with several new launches, including Malibu Island Spiced—a female-targeted, low-calorie entry priced at around $17—and the new Malibu Cans ready-to-drink cocktail range, created to tap the outdoor drinking occasion. Last month, Malibu debuted its first-ever dessert-inspired offerings with Malibu Swirl—which features a strawberries and cream flavor profile—and Malibu Sundae ($14.99). The brand is currently exploring additional dessert and confectionary options.

“Rum has two key segments: older consumers looking for a premium, aged sipping rum and younger consumers who are much more exposed to what’s going on with flavors in vodka,” says McCann. “Younger consumers are looking for something new and unique, and that’s who we’re talking to with these innovations.”

Tagged : Malibu, Pernod Ricard, rum, spirits

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