Impact Databank: Rum Decline To Continue, But $25 And Over Brands See Growth
December 26, 2023The overall rum category in the U.S. is expected to fall below 22 million 9-liter cases this year for the first time since 2005—according to The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast—its 10th decline in the past 12 years. The super-premium sector ($25 and over a 750-ml.), however, has seen the emergence of many smaller players who are helping to showcase the diversity and quality of rum for a new generation of consumers.
$25 and over rum brands are projected to approach one million cases in the U.S. by year-end, according to Impact Databank, led by Maison Ferrand’s Plantation, which is expected to near 200,000 cases in 2023. Unlike their larger-volume counterparts, super-premium rum brands are primarily darker, aged offerings meant to be sipped neat or on the rocks—catering to drinkers of whiskies and other brown spirits.
As smaller labels have gained traction, the major spirits players have invested in the upscale end of the category as well. Diageo, which already has Guatemala’s Ron Zacapa in its super-premium stable, expanded its presence in the dark rum sector with the acquisition of Don Papa from the Philippines for up to $474 million earlier this year. Late in 2022, Brown-Forman purchased Venezuela’s Diplomatico for $725 million, while Pernod Ricard increased its minority investment in Sovereign Brands, which counts Bumbu rum from Barbados in its $25 and over portfolio.
Many of the top-selling labels have also made significant additions to their dark, aged rum selections. Serralles USA’s Don Q Reserva 7 ($30) is their best-selling aged offering, representing 60% of the Don Q aged rum lineup—primarily in the off-premise. Category leader Bacardi continues to sustain efforts behind its Premium Cask Series. Bacardi Ocho was the label’s top aged offering last year by volume and notched the largest growth, increasing 13.8%, according to Impact Databank.
Among other brands targeting growth in rum’s upper tiers, Shaw-Ross International has seen gains for its Pusser’s brand this year, while Campari is active in the segment with Appleton, and Edrington targets the higher end with the Brugal label. —Juan Banaag
| $25 & Over Rum – Top 6 Brands In The U.S. | |||||
| Rank | Brand2 | Importer | Origin | Total 2022 U.S. Volume1 |
Control States Volume Growth 2023 YTD2 |
|---|---|---|---|---|---|
| 1 | Plantation3 | Maison Ferrand USA | Barbados | 171 | 17.0% |
| 2 | Bumbu | Sovereign Brands | Barbados | 141 | 5.0% |
| 3 | Ron Zacapa | Diageo NA | Guatemala | 73 | 5.9% |
| 4 | Diplomatico | Brown-Forman | Venezuela | 56 | -15.1% |
| 5 | Pusser’s | Shaw-Ross | British V.I. | 41 | 7.3% |
| 6 | Santa Teresa | Bacardi USA | Venezuela | 32 | 83.0% |
| Total Top 6 | 514 | 7.3% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through October. 3 Sourced from multiple origins.Source: NABCA & IMPACT DATABANK © 2023 |
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Tagged : Bacardi, Bumbu, Diageo, Don Papa, Don Q, Plantation Rum, rum, Santa Teresa, Zacapa
