Premium selection - MONARQ - drinks, distribution and marketing

 RUM REPORT
Premium
selection
As more consumers discover the
nuances of fine rums they may
decide the spirit is also a good
choice when they’re not on vacation
by
WENDY MORLEY
N
othing says the Caribbean like a drink containing rum. Sales of the spirit had been declining in
recent years but according to International Wine
and Spirits Research (IWSR), this trend is expected
to change in the coming years. The best news for rum producers
and the duty free market is that this increase is expected to come
from premium selections.
Charred barrel
Rémy Cointreau is slowly replacing its
Mount Gay Eclipse with the premium Mount
Gay Black Barrel, named for its maturing
in charred oak ex-bourbon barrels
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AMERICAS DUTY FREE & TRAVEL RETAILING APRIL 2015
The trend toward premiumization of products is not so much
the case in the Caribbean, where a low retail price is often the
deciding factor in a customer purchase. “The major share of
the rum pie goes to the unexpansive brands up to US$20,” says
François Van Aal, Regional Director, Rémy Cointreau Travel
Retail Americas. “This is especially true for the Caribbean, which
is a very competitive rum market, and where most of the major
rum brands are produced. The Caribbean is a unique market to
promote and stimulate the rum industry, but mostly with very
low retail prices.”
Rémy Cointreau is bucking this trend. Whereas its entry-level
rum Mount Gay Eclipse grew in single digits over the coming year, sales of the premium Mount Gay Extra Old grew in
the double digits. These stats support the decision made by the
company to focus its efforts on a new product, Mount Gay Black
Barrel, a small-batch, handcrafted rum matured in charred oak
ex-bourbon barrels. It is designed for Mount Gay drinkers who
appreciate the rich aromas and greater intensity that the charred
barrels lend to the liquid. Of course, aging the rum increases its
value. Van Aal says, “There is a good loyal customer base in Duty
Free Americas for this brand, which is made in Barbados. While
Mount Gay performs well, we want to accelerate the development thanks to a premiumization of the brand with the roll out
of the high end Mount Gay Black Barrel.
Rémy Cointreau exhibited the new Mount Gay Black Barrel
in Orlando at the IAADFS Duty Free Show of the Americas, and
the company plans to hold educational tastings throughout the
year. “The best way to be convinced is to taste it and understand
the production process. Therefore we will have tastings in many
locations, as well as trainings for the sales employees
wherever possible.”
Travel retail is an important channel for the company. “Duty
free is the most expensive market for producers, but it is great
exposure for the brand,” he says. “At this point we consider it a
market investment.”
The Caribbean, too, is an important market for the brand,
because it’s a tourist destination with considerable traffic, People
traveling in the region are often looking for a special rum. In the
coming weeks the company will be releasing an exciting new collection called the “Finish Collection.” March is tight lipped about
it at the moment, but believes it will be a searched-for product.
Once it’s released, he will be promoting it through promotions
and activations.
French tradition
Atlantico rum,
which has the
name and visage
of Enrique
Iglesias helping
to get it known,
is expanding
throughout the
Caribbean and
into other parts
of Latin America
Rhum Clément and Rhum J.M., from the island of Martinique,
has seen strong double-digit growth in the past two years across
the brands’ 70 international markets. In both Martinique and
France, these brands are the leaders in the aged rum segment.
The overall premiumization of the market has helped to make
this happen, as customers are looking for better-quality products
and brands with some history.
Matthieu de Lassus, Export Director of these two brands, says
most of the company’s efforts have been educational, helping
the consumer to understand the different types of rum. “We
Progressing south
For Atlantico rum, the Caribbean on the whole has been
good and duty free within the region has been especially positive. According to Robert de Monchy, Managing Director of
MONARQ, the rum’s distributor in the region, business has
increased significantly in 2014. “Atlantico is performing well,” he
says. “We have recently introduced the brand in several Caribbean duty free accounts in addition to locations throughout Latin
America, including the Bahamas, Puerto Rico and Colombia. We
listed Atlantico in several stores in St. Maarten, US Virgin Islands
and Aruba last year, to name just a few. Argentina and Brazil will
be opened soon as well.” MONARQ is currently in discussions to
promote the brand in the airports of St. Thomas and St. Maarten
(Princess Juliana International Airport), in addition to retail
stores in the Bahamas.
Atlantico’s flagship rum “Private Cask” is the primary focus
for MONARQ; a newly designed gift box makes it especially
attractive. Atlantico Reserva and Platino round out the range and
are featured in select markets. De Monchy expects the brand to
continue growing throughout the coming year, both in overall
sales and in the number of locations where it’s available.
New collection
Aged rum is a growing category, and that’s good news for Ron
Abuelo. Sales of this rum grew 35% last year. Ricardo March,
Vice President of Sales, says his goal is for the rum to continue
on this 30% to 35% growth trajectory over the coming year.
“Aged rum continues to grow. Just the US market for rum is 22
million cases each year. The category is there. Currently only 5%
of this is aged rums, so there is plenty of room to grow,” he says.
“Can you imagine if we had even 10% of this market? The sky’s
the limit.”
Ron Abuelo has been achieving 30% to 35% growth year on year, and
the new “Finish Collection” is expected to help that trend continue
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RUM REPORT
to a true internationally recognized brand. We can rely now on
our strong network of international distributors and benefit from
a superb image amongst rum lovers. Being a small brand, there
is still plenty of room to grow and we intend to surf on this new
global trend for super premium rums.”
Luxurious additions
Matthieu de Lassus, Export Director of Rhum Clément, is banking on education
to help bring the rum category up to where it should be in duty free
recently designed a Rum Map which has been very well received
by our all partners and customers. This map clearly distinguishes
the three main styles of rum: First, the French style rhum from
previous French colonies, which mimicked distillation and
ageing methods traditionally used for French Armagnac and
other famous eaux de vies. Second, the Spanish style ron, mostly
inherited from Spanish culture for sweet wines like Jerez. Third,
the English-style rums, which are mainly spiced rum, dark rums
and/or strong rums. It is obvious that certain rums, although
sharing the same category, are clearly the results of three different
cultures, philosophies and production methods, and it is our goal
to explain this to our customers and partners.”
Another goal de Lassus has is to raise rum’s profile in the
duty free market. “It is always striking and sad to visit duty free
worldwide and to see the little consideration devoted to the rum
category compared to other categories like whisky, cognac or
vodka. Rum is the third-biggest category of spirit in the world,
but barely represents 5% to 10% of all spirit assortment within
duty free stores. Whereas whisky shelves are full of superb fine
whiskies from small single malt distilleries, rum shelves are
usually owned by four or five major brands selling mostly
value products.”
For its part, Rhum Clément is trying to change this, and de
Lassus says duty free buyers are beginning to get the message.
The company expects growth of 30% this year, based to a great
degree on the education of customers and buyers, and also on
revamped, elegant and higher-end packaging for this rum with
cognac-style naming such as Clément VSOP, the new Clément
XO and the company’s 10-year release. “In only ten years, Rhum
Clément passed from being a very local brand from Martinique
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Jamaica is the largest market for Gruppo Campari’s rum portfolio in the Caribbean, with a duty free business that has many
outlets: Montego Bay’s international airport caters primarily to
tourists whereas Kingston’s caters mainly to traveling Jamaicans
and business people. Cruise ship passengers can also shop duty
free at piers in Ocho Rios, Montego Bay and Falmouth.
Gruppo Campari’s rum sales in the duty free channel have
been growing for both brands, Appleton Estate Jamaica Rum
and Wray & Nephew White Overproof Rum. Ugo Fiorenzo,
Senior Market Director for J. Wray & Nephew Limited, says the
company carries out a great deal of marketing activity in this
channel in the country. “We have lighthouse window displays in
both airports; in Kingston airport the window display features
Wray & Nephew White Overproof Rum and in Montego Bay it
features Appleton Estate Jamaica Rum. We run special programs
such as gift with purchase during the peak periods including the
winter tourist season and the major Jamaican public holiday. We
also have an extensive sampling program. For this we feature
Sangster’s Jamaica Rum Cream range throughout the year.”
Fiorenzo says while the company’s rum products are available
in duty free throughout the Caribbean, over the coming year the
focus will be on “expanding our visibility and offerings in the
Caribbean as we feel there is a lot of
potential for growth in the short to
medium term in the duty free channel in Caribbean markets outside
of Jamaica.” Recently the company
has expanded its offerings in many
Caribbean countries to include
luxury variants in the Appleton
Estate range.
Gruppo Campari is
bringing the luxury
editions of its Appleton
Estate Jamaica Rum
to duty free in other
Caribbean islands