“We are prioritizing a renewed focus on premium rum,” the brand’s vice president for North America, Lisa Pfenning, tells SND. “Over the past year, we’ve observed a notable shift towards premium rum consumption, with an increase in sipping occasions and an overall appreciation for the craftsmanship and heritage behind each bottle.”

Pfenning says Bacardi is refocusing on its Reserva Ocho expression, aiming to capitalize on rising interest in sipping rums. Innovation is also key to the effort, exemplified by last year’s launch of limited-edition offering Sevillian Orange Cask Finish, a 45% abv bottling that retails at $35.

Pfenning notes that while rum overall is expected to continue trending flat to down in the next several years, the premium-plus segment is expected to see mid single-digit growth. “The growing interest among millennials in exploring unconventional cocktails and spirits is expected to drive further rum sales,” she adds. “This demographic’s willingness to experiment with new and unique flavors presents an opportunity for rum producers to innovate and expand their offerings.”

Among Bacardi’s marketing moves to draw in new drinkers, the brand recently partnered with NBA star Jimmy Butler’s Bigface coffee brand to promote a Cafe Con Ocho espresso martini that replaces vodka with Reserva Ocho rum. Bacardi also linked with the MTV Video Music Awards on a limited edition bottle set and Bacardi Vintage pop-up experience in New York, among other initiatives.

In addition to its flagship rum brand, Bacardi North America is targeting the ultra-premium end with the Santa Teresa label from Venezuela, with Pfenning noting that Santa Teresa’s limited Speyside Whisky Cask Finish offering ($50) has been well received. “Consumers are increasingly seeking high-quality, artisanal products with unique flavors and stories,” she says. “Rum, with its rich history and diverse range of styles, is well-positioned to capitalize on this trend.”