This article was initially published in the October issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
As international travel restarts after the pandemic, rum brand owners are convinced the category is ready for GTR take-off, writes Joe Bates.
Rum has traditionally lagged behind other brown spirits in Global Travel Retail, punching beneath its weight compared to domestic markets’ presence. However, the category has rebounded strongly from the effects of the pandemic, growing sales in the channel by 52% to reach about 770,000 cases in 2021, according to IWSR Drinks Market Analysis.
Brand owners are convinced rum is ripe for further premiumisation in GTR. “The category, particularly the premium and super-premium segments, are still underrepresented in GTR,” argues an upbeat Edouard Beaslay, global marketing director of Venezuela’s Diplomático Rum.
“Being the fastest-growing segments in domestic markets will help convince travel-retail operators to re-evaluate the space they dedicate to super-premium rums in order to fulfil their potential. Indeed, there's a growing interest in super-premium among travellers, showing rum can compete with other premium dark spirits, and operators can offer the variety that consumers are looking for in GTR.”
Rum offer often ‘poor'
Nonetheless, outside of many rum-producing countries, the typical category offer in many duty-free stores remains narrow. Ian Burrell, the internationally-renowned rum expert & co-founder of Equiano Rum, an African-Caribbean rum sold in 20 countries worldwide, judges the average GTR rum selection as “poor”.
“Internationally, duty-free stores offer very little variety in regards to their rum offering,” he insists. “If you take away spiced and flavoured rums from their shelves, then consumers aren't getting a chance to really experience how diverse the rum category is. There are a few regional duty-free stores in the Caribbean and South America that offer a few local rums, but then even those offerings are limited.”
Earlier this year, Equiano, named after the 18th Century African abolitionist, author & entrepreneur Olaudah Equiano, signed a deal with specialist distributor GMAX Travel Retail to make its debut in GTR. “It's been a slow start, due to the fact that we're just coming out of a global pandemic, but we've had some optimistic conversations and one huge success for our young brand in that we're now being sold at Barbados Airport,” says Burrell. “This is important to us as Equiano Rum is blended and bottled at the Foursquare Distillery in Barbados by Barbadians.”
Breaking into the channel
Two other brands eager to gain a toehold in GTR are Cuba’s Sao Can and Ron Cubay, which are produced by the island’s state-owned Corporación Cuba Ron and distributed by Italy’s ERC Sun Spirits. Earlier this year, ERC signed a consultancy agreement with consultancy JES Travel Retail to launch the two brands, which both boast coveted DOP (Denominación de Origen Protegida) status, into travel retail.
Initially, a range of eight Sao Can and ten Ron Cubay rums have been selected, with prices rising from EUR40 to EUR90 (US$40-$90) for expressions such as the Sao Can 20 Reserva. “The Sao Can and Ron Cubay brands are what travel retailers have been seeking for many years, namely high-quality products that take the consumer on a journey,” says JES owner Tim Jobber.
Bacardi stands tall as the market-leading rum in GTR — last year, according to IWSR, the brand held a commanding 24% share of the total category, with a 12% share of the premium tier. Bacardi GTR global head of marketing Ignacio Vazquez describes the brand as a “category beacon” that is now on a mission to “lead category growth with a focus on premiumisation”.
“In GTR," Vazquez says, "Bacardi has a strong rum portfolio of premium aged rum architecture that is clearly designed and easy to navigate: Bacardi Cuatro, Bacardi Ocho, Bacardi Diez, Bacardi 16yo and Bacardi Reserva Limitada.
“At every level of the pricing ladder, Bacardi offers quality, helping consumers understand and appreciate the extraordinary craftsmanship and heritage in barrel-aged rums, encouraging further exploration and discovery.”
Vazquez reveals Bacardi GTR has been working on a new rum-focused omnichannel campaign. “The digital strategy for 'Depth in Every Drop' follows the entire consumer journey, from the moment they book their trip, before and on the day of travel, with paid and Social Media channels focused on pre-trip and also on return-trip consideration, driving conversion online to our retail partners’ websites.
“The campaign is also highly visible in the airport with prime digital media sites, driving footfall towards the activation space. The campaign is supported in-store with cocktail demonstrations and tasting opportunities that help curious shoppers discover their favourite rum for cocktails or sipping neat as an alternative to other spirits.”
Making a COVID comeback
The past two pandemic-affected years have been undoubtedly tough for rum in GTR: In 2020, sales plunged by 70% in both volumes and value. As restrictions have been relaxed, however, the business has started to pick up. “After a very slow 2021, this year has seen a significant rebound across all regions,” confirms Diplomático’s Beaslay.
“Some of our key customers have gone back to levels of sales close to 2019 as the desire and willingness to travel have increased dramatically during the year. We're expecting this trend to continue this year and next to return to pre-COVID levels and above.”
Diplomático’s main business is based in Europe, which generates around 70% of its sales. “This is reflected in GTR, particularly with France, Czech and the Nordics,” confirms Beaslay. “We've also been very active in the Americas, particularly the US, which is also a key market for the brand.
Diplomático Reserva Exclusiva, a blend of rums aged up to 12 years, is the brand’s main focus in GTR, according to Beaslay. He says that, in recent years, the company - which was acquired by Brown-Forman two months ago - has introduced more premium lines in the channel, including Diplomático Selección de Familia as well as expressions from the distillery’s Prestige range, like the Pedro Ximénez Sherry cask-finished Ambassador and the Single Vintage 2007, finished for a year in Oloroso Sherry casks.
Recovery brings new listings
Alongside the return of air travel, many brands have reported securing new GTR and onboard listings. One is Dead Man’s Fingers, a spiced Caribbean rum created by Cornwall restaurant The Rum & Crab Shack in 2015 and now owned by UK-based Halewood Artisanal Spirits. In addition to its flagship Spiced Rum, the Dead Man’s Fingers range now offers 11 flavour variants, including Raspberry, Mango and Pineapple.
“Over the past six months, we've gained major listings for Dead Man’s Fingers with Dufry UK and with Heinemann internationally,” reveals Halewood GTR director Eamon Prunty. “We’re also widely available onboard airlines, and look forward to continuing to grow our presence in GTR on a global scale.
“Our hero product in duty-free is Dead Man’s Fingers Spiced Rum, yet the wider range of flavours is starting to grow presence. We’re also excited to have secured two new listings with Dufry UK for our Coffee and Cherry variants, which will roll out across key locations soon."
Working with Miami-based firm Blue Caterpillar as its exclusive GTR distributor, Venezuela's Ron Carúpano has also gained an impressive number of high-profile listings in the last 12 months, including with Dufry in the Caribbean and DFS in North America. The brand has also been listed with Canadian border store operators and several US airports, including New Orleans and Los Angeles.
Carúpano’s duty-free range includes 12 Exclusive Reserve, 18 Limited Reserve and 21 Private Reserve, priced between $30 and $70, as well as the higher-end Reserve 1996, XO and Legendario at $300 to $800.
“Ron Carúpano has an exceptional array of liquids across multiple stages of ageing," says marketing director Lucía Alliegro, "and can offer the GTR consumer a choice for each occasion, including gifting and self-indulgence, as well as limited editions.”
These lifts in listings for individual brands have helped build optimism among rum brand owners that as international travel continues to return, the category will finally make the GTR breakthrough many in the industry have long suggested it's been capable of.
This article was initially published in the October issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
