Why premiumisation still rules for rum in North America - Category Intel

Rum’s fortunes are beginning to improve in North America, driving renewed momentum in the on-premise
Higher price tiers are likely sources of future growth as the overall category remains flat
Consumer education and targeting rum newcomers are seen as key to unlocking future North American growth
With a broad range of styles – from mixable white rum to long-aged sipping expressions – one of rum’s greatest assets is its versatility
Brands are investing big money in on-premise education and training, and creating ambassadors to shore up bartender engagement

Over the last couple of years, rum has had its challenges across North America, with IWSR data showing volume declines for the US, Canada and Mexico in 2023, and all styles impacted. Nor has the US spirits scene, in particular, fared much better since then, with further contractions expected from IWSR’s data for last year, due for release as Global Drinks Intel went to press.

According to the Americas VP of Bacardí Rum, Lisa Pfenning, “2023 proved to be a particularly challenging year across North America, with mainstream white rum feeling the effects as consumers increasingly turned to tequila and whiskey/whisky. The broader spirits landscape became more competitive, putting additional pressure on the rum category in terms of volume and brand visibility”.

A similarly downbeat note is sounded by the MD of Campari Group’s ‘House of Whiskeys & Rum’, Raul Gonzalez, who reports a “softening” in the US and Canada during 2023 in line with post-pandemic shifts in consumer spending and behaviour. As for 2024, he says: “[It] was a unique case for us as a major hurricane in Jamaica led to supply disruptions, but we are seeing an initial rebound in Q1 2025, with organic sales growth of our Jamaican rum portfolio up 5% globally.”

As the US tequila boom cools, there are signs that rum is beginning to reassert itself. “By mid-2024, we started to see the tides turn,” says Pfenning. “According to the ‘2024 Bacardí Trends Report;, the mojito and rum-and-Coke each held a spot in the top ten cocktails globally, driving renewed momentum in the US on-premise scene through festivals and premium retail.”

Rum’s travails are in any case relative. For certain sections of the market and particular brands, the downturn never happened. “While IWSR reports challenges across the rum category in North America, our experience with Bumbu has been markedly different,” says Sovereign Brands CEO Brett Berish. “The US and Canada remain two of our top-performing markets globally, with Bumbu achieving strong double-digit growth in both countries this fiscal year.”

Importantly, Berish expects this momentum to continue for at least the next three years.

Premiumisation powers on

Berish’s faith in rum’s higher price echelons is shared by David Palacios, global PR manager for emerging brands at Brown-Forman, owner of the Diplomático brand. “We’re observing a significant and sustained increase in consumer interest and engagement within this [super-premium] segment,” he says.

“The US market remains a key focus for us, and we’re optimistic that the super-premium category will maintain its performance there. In Mexico and Canada, we’re intensifying our efforts, and this year will be crucial in evaluating the brand’s progress in both markets.”

Anyone doubting rum’s luxury credentials need look no further than Edrington-owned Brugal, which in February launched a US$3,000 limited edition, Andrés Brugal Edition 02 (below). “In 2025, we see some of the most exciting opportunities for rum in the ultra-premium and prestige tiers,” says brand ambassador Georgia Balson. “More and more collectors and discerning consumers are discovering the craftsmanship, heritage and nuance that ultra-premium-and-above rums can offer.”

At Campari Group, Gonzalez is hopeful that Appleton Estate’s 275-year heritage, Jamaican provenance and minimum ageing standards, influenced by the island’s tropical climate, can help build a compelling narrative for rum-curious consumers.

“Looking ahead, we anticipate the category as a whole will remain flat, but we’re seeing continued momentum for premiumisation and encouraging signals at the top end of the market,” he observes. “While consumers are being cautious with their spending, they’re also demonstrating a willingness to invest in higher-quality products or ‘spend better’ for rum.”

Like Gonzalez, Bacardí’s Pfenning sees the greatest potential within the premium and super-premium tiers, especially for aged and dark expressions. “The US consumer is evolving with a clear shift toward more thoughtful consumption, where people are seeking authenticity, quality ingredients and connection with brands and people in the real world,” she argues.

“We’re also seeing strong momentum in the cocktail space, where aged rums are taking centre stage in elevated serves and even replacing traditional serves in classic recipes.” One example, says Pfenning, is Bacardí’s twist on the espresso martini, the ‘Bacardí x Bigface Café Con Ocho’ cocktail, which combines Bacardí Reserva Ocho with Bigface El Porvenir espresso.

Versatility remains rum’s superpower

This hints at what remains perhaps rum’s greatest strength: its sheer diversity, and therefore versatility. Palacios sees a “significant opportunity” in the US for Diplomático Planas, an aged white rum with the daiquiri at the heart of its appeal.

“The rise and development of cocktail culture in recent years has positively impacted premium rum category growth,” he explains. “Rum is an incredibly versatile ingredient, and new trends show that consumers are particularly interested in experimenting.”

This underpins the diverse collection of rums sold under the Planteray banner by Maison Ferrand – from what marketing & communications director Angélique Jullienne describes as “bartender staples”, such as Planteray Original Dark, pineapple-infused rum Stiggins’ Fancy and overproof offering OFTD (old fashioned traditional dark), to aged iterations such as Planteray XO 20th Anniversary – dubbed by Julienne as “a beautiful bridge for those discovering rum through whisky or cognac”.

The company also has limited editions from collaborations with other distilleries and rum-makers, including vintages, cask finishes and historic parcels. “We don’t chase trends,” says Jullienne. “Our approach is to keep making rums with character, transparency and soul, and to let that speak to people across the bar, around the table or from the back of the shelf.”

In the case of Bacardí, rum’s diversity has led to the creation of a vast brand franchise that takes in rums of every hue and price point, as well as increasingly influential RTD spin-offs such as Bacardí Mixed With Coca-Cola (below), now a major growth driver.

However, says Pfenning: “While RTDs have contributed to our broader portfolio – especially during peak moments like summer festival season – we’re currently focused on accelerating growth through standout flavour expressions and cocktail-led experiences.” One example of this is the use of Bacardí Mango Chile in the mango fuego cocktail that fuses spicy and sweet flavours.

On-premise spotlight

A diverse market it may be, but rum is also crowded, with a plethora of brands vying for bartender attention. In this context, engagement programmes are a vital way of winning over new on-premise ambassadors, listings and placings on cocktail menus.

Pfenning says Bacardí prioritises “education, collaboration and celebration” through training, in-bar takeovers and industry nights. She adds: “What truly drives impact is staying hyper-local: giving bartenders a platform to express their creativity while equipping them with the tools, visibility and authentic brand connection that fuel long-term engagement.”

She highlights the brand’s upcoming Bacardí Colada Club, activating in 14 US markets, with five bartenders per city creating their own colada riffs; and the ‘Bacardí Premium Rum Army’ – a collective of influential bartenders and industry leaders.

Bartenders have always been at the core of Planteray’s strategy too. Last month, the brand celebrated the third ‘Planteray Tropical Week’, bringing together 650 bars from around the world, and has launched a new competition, ‘Fancy a Stiggins’, in association with the Tales of the Cocktail Foundation, targeting bartenders across the US and Canada, with a trip to the Stiggins’ Ball in Cognac on offer to the winner.

Education key to growth

The breadth and depth of the rum market in North America illustrates what an established fixture of the spirits scene it is, but brand owners know that there is more work to do – and more consumers to win over. “We believe it’s essential to also continue to educate about the rum category to reach our full potential,” says Campari’s Gonzalez.

“We find that many dark spirits drinkers are unaware of the craftsmanship in rum-making, the challenges and opportunities with tropical ageing, and the mastery required to bring high-aged rums to the market.

“Closing that knowledge gap and welcoming in new consumers will be key for unlocking further growth.”

Bumbu’s strategy, meanwhile, is to use the versatility of the category, and its own range of Bumbu Original, Bumbu XO and Bumbu Cream (above), to recruit rum newcomers.

“We aren’t bound by traditional consumer segmentations,” says Berish. “Instead, we focus on inviting new audiences into the rum space, many of whom are discovering Bumbu as their first rum and embracing it as their go-to spirit for every occasion.

“As we continue to expand into new markets like Mexico and beyond, our strategy remains consistent: build awareness, drive trial and create emotional resonance through storytelling and unforgettable taste.”