Decade of Rum report - WIRSPA

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2002-2012 overview of rum market share (focus EU) over a 10 year period.

Transcript of Decade of Rum report - WIRSPA

  • 1. ACR_DoR_V4_pgs.indd 1 21/11/2013 11:41
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  • 3. A U T H E N T I C C A R I B B E A N R U M 0 1 Page 02-03 Rum: A World Tour Page 04-05 A Global Spirit Page 06-07Spain Page 08Germany Page 09France Page 10 United Kingdom Page 11 Italy Page 12 Netherlands Page 13 Belgium and Luxembourg Page 14 Denmark Page 15 Overview of Other Markets Page 16-17 Rum: Insight and Opinion Page 18-19 Rum and The Caribbean Page 20-21 A Golden Age for Rum Page 22-23 The Marque of Authenticity Page 24-25 A Question of Age Page 26-27 Authentic Caribbean Rums Global Journey Page 28-33 Rums Golden Future Page 34-35 The Decade of Rum Page 36Afterword ACR_DoR_V4_pgs.indd 3 21/11/2013 11:41
  • 4. 0 2 The following analyses the global rum market over the last decade. We highlight country-by- country data, market trends and the performance of individual types of rum. Rum: ACR_DoR_V4_pgs.indd 4 21/11/2013 11:41
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  • 6. Sugar cane is grown in tropical regions across the globe, so it is not surprising that rum has a following in all continents. Its breadth of production generates a wide variety of definitions, but for the purpose of this review well take an if-they-call-it-rum, well-call-it-rum approach. THE OVERALL PICTURE Despite the widely reported economic problems in recent years, the first decade of this century has seen strong growth across many spirits categories. In fact, rum enjoyed a growth rate of +40%, ahead of one of the most talked about categories of the decade vodka. A U T H E N T I C C A R I B B E A N R U M Global Growth Of Individual Spirits IWSR 000s 9 lt cases2000 2010 % change Rum101,757142,29140% Bitters / Spirit Aperitifs22,479 28,509 27% Vodka395,668 495,218 25% Shochu / Soju189,184 236,440 25% Cognac / Armagnac8,577 10,315 20% Fruit Eaux de Vie20,382 24,081 18% Liqueurs72,86285,11917% Scotch Whisky74,23384,33014% US Whiskey26,37829,57612% Canadian Whisky20,67219,995-3% Cane131,903115,451-12% Gin / Genever60,545 50,873 -16% Aniseed34,85628,408-18% Aquavit1,5021,070-29% Korn / Schnapps9,496 6,438 -32% 0 4 ACR_DoR_V4_pgs.indd 6 21/11/2013 11:42
  • 7. RUMS GLOBAL SPREAD Givenrumsglobalspread,andallthedifferencesinproductiontechniques, it is even more surprising that rum is one of only two spirits categories to have seen growth in all major regions of the world. In addition to local sales, in 2012 there was almost 1.5 million cases sold through Duty Free channels and this number is also growing strongly. SPICING UP THE CATEGORY Spiced rum has more than doubled in size over the last ten years and flavoured varieties are up by over 50% (source: IWSR). They have easy appeal to many different consumers and perhaps this is why spiced rum has helped grow the rum category amongst younger consumers over the last ten years. According to just-drinks, spiced rum now accounts for 8% of the total rum market and it doesnt look like holding back new innovations and a number of new brands have dramatically increased the choice available to consumers which has, in turn, brought new consumers to rum. For premium and super-premium varieties, like those bearing the Authentic Caribbean Rum Marque, this increased category interest can only be a good thing. A U T H E N T I C C A R I B B E A N R U M 0 5 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 ASIA PACIFIC AMERICAS EUROPE AFRICA & MIDDLE EAST Vol 2000 Vol 2010 CIS 000s 9lt cases ACR_DoR_V4_pgs.indd 7 21/11/2013 11:42
  • 8. A U T H E N T I C C A R I B B E A N R U M The economic backdrop has not been good for Spain. GDP decline, problems in the banking sector and severe unemployment have had an impact on all consumer markets, especially spirits. Despite this, rum continues to be the second biggest spirits category at nearly 4 million cases a year and the Spanish market is the largest in the EU. The main trend in recent years has been the resurgence of gin with the category showing growth in a heavily depressed market. Gin & Tonic has drivenpremiumbrandsintogrowth,whilesalesatthelowerenddecreased. However, there are signs that this is beginning to slow as consumers once again become more adventurous and seek recommendations from bartenders. There is a great opportunity for rum to step in and educate consumers about premium-aged rums as they look for the next big thing in the spirits world. Miguel Figueredo (writer, consultant and experienced bartender) The Spanish rum market is dominated by Brugal and Barcel, who together, hold over a third of the market. Their long-term growth trends have been remarkable, but as with many premium brands both have recently been hit by economic factors. Essentially, rum consumers are young and it is this group experiencing the highest unemployment rate. In turn, this has seriously impacted on the night bar sector and the rum category in particular. Despite this, many brands are continuing to invest in this market as they see the future potential it offers once the economy starts to recover. The premium end of the market has been affected by consumers switching to gin, while brands in the standard rum category have been hit by younger consumers trading down to cheaper alternatives or looking to other categories.Brandshavealsosufferedatthehandsofown-labelcompetitors as the value segment expands. 0 6 Gin & Tonic is not being ordered as much as before. The consumer is starting to get tired of this trend. ACR_DoR_V4_pgs.indd 8 21/11/2013 11:42
  • 9. A U T H E N T I C C A R I B B E A N R U M Spanish Market Share Of Spirits IWSR 000s 9lt cases 2002 2012 10 yrs Share of Spirits Whisky 11,486 5,535 -51.8% 26% Rum 3,289 3,929 19% 18% Gin / Geneve 3,978 3,422 -14.0% 16% Brandy 3,839 2,142 -44.2% 10% Vodka 1,410 1,303 -7.6% 6% Rum Style Share of Rum White Rum 1,320 382 -71% 10% Gold Rum 1,893 3,478 84% 89% ACR_DoR_V4_pgs.indd 9 21/11/2013 11:42
  • 10. A U T H E N T I C C A R I B B E A N R U M The success of rum has come about through the large brands successfully adopting lifestyle positionings, a trend to premiumisation and an increase in availability of sipping rums. Germany is the second biggest spirits market in Europe and 10th largest in the world. Despite a more favourable economic climate than many other countries, the German spirits market shows steady long-term decline. Within this, vodka (the largest category) shows steady growth, but rum and whisk(e)y have been the recent pacesetters. According to Bastian Heuser (bartender, PR and beverage consultant): As with many other countries, rum & coke is the most popular way of consuming rum in Germany, and ginger beer (locally known as ginger bee) is beginning to grow in popularity. Looking at high-end on-trade outlets, mojitos and daiquiris are the most popular cocktails. In general, as the market grows, consumers are becoming more brand aware and brand loyalty is growing in the spirits category, which in turn is extending to rum. German Market Share Of Spirits IWSR 000s 9lt cases 2002 2012 10 yrs Share of Spirits Vodka 3,340 8,245 147% 17% Brandy 11,268 6,888 -39% 14% Rum 3,509 4,413 26% 9% Whisky 3,514 4,057 15% 8% Gin / Genever 1,118 923 -17% 2% Other Spirits 2,000 770 -62% 2% Cane 250 277 11% 1% Rum Style Share of Rum Gold Rum 1,720 2,297 34% 52% White Rum 1,189 1,073 -10% 24% Spiced Rum 539 ++ 12% Other Rum Verschnitt 410 235 -43% 5% Other Flavoured Rum 50 144 187% 3% Black Rum 140 126 -10% 3% 0 8 ACR_DoR_V4_pgs.indd 10 21/11/2013 11:42
  • 11. A U T H E N T I C C A R I B B E A N R U M The image of rum has moved from something very colonial to something much more exotic. The French market is dominated by rums from the French overseas territories. Traditionally these rums were imported at 55% alcohol by volume (ABV) but in recent years this has been reduced to 40% and has had a favourable impact on pricing. Overall, rum is relatively underdeveloped in France, at around 8% of total spirits, and rum from the French overseas territories is very competitively priced. However, according to just-drinks: there is also an emerging premium and super-premium tier with premium rums growing by some 36% between 2010 and 2011 this category may well see further development. Christophe Bouyssie (freelance journalist) puts it succinctly: White rum is the most popular variety, with around two-thirds of volume, but in recent years golden rums are growing faster. French Market Share Of Spirits IWSR 000s 9lt cases 2002 2012 10 yrs Share of Spirits Whisky 12,249 14,934 22% 40% Flavoured Spirits 20,820 14,887 -28% 40% Rum 2,337 3,108 33% 8% Vodka 930 2,979 220% 8% Brandy 852 502 -41% 1% Gin / Genever 796 486 -39% 1% Cane 5 71 ++ 0.2% Rum Style Share of Rum White Rum 1,434 2,035 42% 65% Gold Rum 903 1,066 18% 34% 0 9 ACR_DoR_V4_pgs.indd 11 21/11/2013 11:42
  • 12. 1 0 A U T H E N T I C C A R I B B E A N R U M The number of smaller brands enteringthe market has helped to stimu