Global Drinks Intel speaks with Havana Club international marketing director Anne Martin to assess the brand’s progress in Europe
Looking back on 2021, what were the highlights for Havana Club as far as the European market was concerned, and what were the main challenges?
The past year has presented a myriad of challenges as lockdown restrictions continued in various European markets and heavily impacted key areas of the industry, including global travel retail and the on-trade. That said, the rum category has proved resilient, and, over the past year, not only resisted, but continued to grow in the spiced & flavours segments and at Super Premium and above, higher quality levels. We have also been fortunate that, since the Covid-19 outbreak, we have been able to redirect our focus, where necessary, to off-trade channels with a range of new launches.
For example, in 2021 we unveiled our first spiced offering aimed at legal-aged Gen Z drinkers, in response to extensive market research which revealed that 61% of young adults in the UK who purchase rum buy spiced. Havana Club Cuban Spiced (35% ABV) was first launched into UK retail (Tesco, Waitrose, Morrisons and Co-op) with an eye-catching 70cl bottle and an RRP of £22. Shortly afterwards, Cuban Spiced launched in an RTD format – Havana Club Cuban Spiced mixed with Cola – further tapping into demand for innovative spiced offerings and convenient formats among the next generation of rum drinkers.
Similarly, in Germany, we launched the Verde & Tonic RTD following the successful launch of Havana Club Verde(35% ABV) in summer 2020. Our first exploration into the growing flavoured rum trend, Havana Club Verde is a rum-based spirit drink infused with sweet citrus fruits and botanicals offering drinkers a fresh new spirit versatile enough to appeal to a larger audience.
As part of our strategy, we’ve also continued to champion our flagship product, Havana Club 7, through meaningful collaborations with renowned artists. Last summer we unveiled our second limited-edition bottle in collaboration with international grime sensation Skepta which celebrates the creative and cultural connections between Yoruba culture and Afro-Cuban spirit. Targeted specifically at legal-aged Gen Z consumers with a strong interest in street culture, the collaboration was supported by a 360-campaign incorporating out-of-home advertising, PR, social and influencer seeding across priority markets including the UK, Spain, Germany, Belgium, Italy, Ireland, Portugal and Greece. In the UK specifically, the Skepta campaign was designed to drive off-trade sales and activate a new business channel for the brand in the convenience sector. As familiar checkpoints that lie at the heart of every neighbourhood, it was an effective strategy that embraced retailers and resonated with the communities they serve.
These innovations, as well as the expertly crafted rums in our existing range, were widely recognised in the world’s leading taste and design competitions in 2021. Across the portfolio our rums were awarded 54 medals last year, a 53% increase in comparison to 2020, demonstrating our commitment to continuing to produce showstopping Cuban rum and its huge consumer appeal.”
What strategy did you take to launch Havana Club Spiced across Europe in 2021, and what success has the new expression had since its launch?
Millennials and legal-aged Gen Z drinkers remain a key priority within our strategy as we seek to continue to recruit the next generation of rum drinkers to the category. Havana Club Cuban Spiced is made from 100% Cuban rum, combining the brand’s world’s famous double-aged rum with exotic flavours and warming spices to create a refreshing new spirit drink.
We launched this product in response to market research which revealed that increasing numbers of young adults are purchasing spiced but were uninspired by the often male-orientated nautical themes and similar tastes dominating the category. As the leading market outside of the US for spiced rums globally, both in terms of value and volume sales[1], the UK was selected as the ideal testing ground for the product thanks to its buoyant and dynamic conditions.
To amplify the launch in the UK we partnered with rapper Ms Banks through our collaborative Raise One campaign, which celebrated people who showcase positivity in the creative world and their wider community. Raise One centred on a digital video series in which we shone the spotlight on three notable voices bringing ‘spice’ to their respective fields. This product is all about flavour, fun and creativity and Ms Banks truly is the embodiment of the attitude and energy Havana Club Cuban Spiced stands for.
Following its success in the UK, we are currently working on rolling out Cuban Spiced in key markets, starting with France in Autumn 2021 – and more to come in the next few months.
The on-premise across Europe was severely disrupted due to COVID in 2021. What success did PR have in switching Havana Club’s focus to the physical and online ecommerce sector?
The global bar and creative industries are truly part of the Havana Club DNA. We have a deep connection with both these communities and have always placed huge importance on empowering and supporting them.
To compensate for the loss of 70% of our planned events because of Covid-19, our Instagram became ‘Plaza Havana Club’ – a virtual space for bartenders, creators and rum drinkers to connect with one another and embrace the spirit of our hometown of Havana. For three months, we commissioned bartenders, musicians, photographers and DJs to create bespoke content for the channel, designed to elevate their personal profiles and engage target consumers. A regular fixture on the channel was ‘Confinement Cocktail Recipes’, perfectly suited to a new reality of quarantine and Zoom parties, created in collaboration with bartenders from the UK, Mexico, Italy and Hong Kong.
Overall, the initiative supported 50 artists and collaborated with eight-bar personalities, supporting them financially and building meaningful connections at an uncertain and challenging time. The Plaza also directly connected Havana Club with fans across the globe outside of the bar environment, generating 1.8 million interactions and attracting 3,000 new Instagram followers.
Separately to the public-facing Plaza Havana Club, we also set up a series of digital initiatives for bar owners whose businesses were impacted by the pandemic. This included open forums for bar owners to seek advice and ask questions on topics ranging from HR and insurance to renting and staffing queries. We also partnered with experts from key fields to host online debates for the UK, European and Asian markets, with the resulting ‘Havana Club Online Hangouts’ providing a space for bar owners to share best practice and key learnings about how to support their teams and communities through the pandemic.
Throughout the crisis we have been awed by the passion, creativity and resilience these communities have shown and we hope that, through our projects, we have been able to equip those that need it with the skills and confidence required to navigate a rapidly changing working environment. This remains a key priority for us and we look forward to continuing to support and engage with the industry throughout 2022.”
Tell our readers about the Havana Club Party Makers initiative as far it relates to Europe?
The Havana Club Party Makers initiative is primarily a mentoring programme, which includes a financial grant, to empower the next generation of event coordinators, festival organisers and late-night venue owners shaping the global party scene.
With the pandemic putting an end to so many live events and parties – and taking a toll on essential revenue sources for those in the industry – we wanted to support new talent. Entrants must impress our expert judging panel with their talent and vision to secure a place in the final. We have been calling for entries across the globe, including Europe – the epicentre of parties and home to both legends and emerging talent.
We received several hundred entries from a range of countries within Europe such as the UK alongside Spain for the Party Makers programme which will now be whittled down to a shortlist of 27 finalists in the first stage, and 9 winners in the second stage. In addition to exclusive mentoring from our panel, the 9 finalists will also receive a €5,000 grant to invest in their business and a once-in-a-lifetime trip to our homeland, Cuba.
We have been impressed with the calibre and diversity of all the entrants and we look forward to working closely with our finalists in the coming months.
Where has Havana Club Tributo 2021 been launched in Europe so far? More generally, how is the market for ultra-premium rum in Europe developing?
With fewer people visiting bars and restaurants throughout 2021, we have seen consumers redirect their spend towards higher end rums to enhance their at-home drinking experience, resulting in the continued premiumisation of the category. Last summer, we tapped into this, with Havana Club Tributo 2021, the sixth instalment of our ultra-prestige collection.
The expression pays tribute to the unrivalled excellence of Cuban Rum production and is sourced from a batch of 100 exclusive Tributo casks never used before, which were then matured exclusively in special white port casks from the Douro Valley. The launch was well-received on e-commerce platforms and in a variety of markets including the UK, Belgium, Swiss, Spain and China which truly demonstrates that consumers are interested in experiencing remarkable unique flavours and aromas.
The appetite for Tributo is reflective of the growing interest for quality, aged rums, which has enabled rum to establish itself as a credible alternative to high-end classics such as Scotch and Cognac. This has firmly established rum as a drink for sipping occasions and paved the way for a growing interest in our more premium expressions.”
Tell us about HC’s collaboration with UK grime artist Skepta?
“Following the creation of two unique Havana Club 7 Rum bottles in summer 2020 and 2021, our collaboration with international music icon Skepta culminated in the launch of Rum of Skeptaat the end of last year. Rum of Skepta is the pinnacle of a journey which has celebrated the cultural links between Cuba, creativity, community, and Skepta’s homeland of Nigeria.
Rum of Skepta was a first for us as our talented Maestro del Ron Cubano Asbel Morales worked directly alongside a musician for the first time to create a spirit designed to appeal to the next generation of rum drinkers with a natural affiliation to rap music and street culture. The maturation of Havana Club’s ongoing partnership with the record-breaking artist, Rum of Skepta was made to encapsulate a feeling of refined elegance, achievement and luxury – symbolic of Skepta’s own journey from inner-city London suburb, Tottenham, to global grime sensation.
The two limited edition bottles benefited from the undisputed quality credentials of Havana Club and even received a range of medals from leading design competitions. Overall, the media activity surrounding the launches of both limited editions and Rum of Skepta has generated strong engagement on social media and contributed to solidifying Havana Club as a cult spirit for the next generation of rum drinkers.
Lastly, if you have any other HC news relating to Europe, please do pass it along.
We’re delighted by our steady growth across the European rum market, and we will continue to experiment, innovate and push the boundaries to bring even more diverse products, to offer consumers new drinking experiences of genuine quality.
[1] AC Nielsen | Total Off-Trade Value | MAT to 02.01.21
