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    tankuanma

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    The rum category seems always on the cusp of cashing in on The brown spirits vogue which has made stars of whiskey and brandy.


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    Overall, the class is level but a number of the top players are enjoying positive development. And producers wish to provide the springboard rum demands on the backbar and in retailstores. Within this extensive category there are many bright spots--obsolete expressions, superpremium bottles, barrel-finishes experiments, tastes and RTD solutions. On top of this, new expressions, products, packaging and promotional campaigns will be grabbing consumers' focus



    "Rum has had a slow but steady bum," says Christine Moll, category marketing manager, mm, for Campari America. "Premiumization will definitely last as brands, and even countries, drive concentrate on educating consumers. "Perhaps the surest signs of an impending rum romance are growth rates for super-premium and the proliferation of expressions that are aged. "The premium and super-premium labels are showing double digit growth," says John Eason, COO and executive vice president in Serralles USA, whose portfolio includes the Don Q brand. "Providers are launching exciting and new expressions." "People are experimenting and seeing that the advantage of swallowing fine aged mm," says Malcolm Gosling Sr., CEO and president of Goslings Rum. "Due to this, we understand that the aged segment of the mm class (albeit the smallest) is increasing at a healthy rate."


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    According to the latest stats from the Distilled Spirits Council, volumes of super-premium mms climbed 10.2% in 2017, while earnings were up 8.3 percent. "Aged expression are becoming increasingly popular," notes Moll, mentioning Appleton Estate Rare Blend 12-Year-Old and Appleton Estate 21-Year.



    High-end mms will pick up momentum because obsolete rum (and aged Jamaican Rum in particular) become a more compelling proposition with tastemakers (bartenders, chefs, retail buyers, food personalities) and consumers, she adds. To that end, the company just launched limited-edition Appleton Estate 30-Year-Old. As an indication of mm's possible, new players continue to enter and explore the marketplace. Hotaling & Co., previously called Anchor Distilling, has invested in Denizen Rum, based on blended Caribbean rams first introduced in 2010. Hotaling & Co. may play an active part alongside Nicholas Pelis, Denizen's creator, on day-to-day brand management, supply and future extensions. Presently, the portfolio includes Denizen Aged White Rum and Denizen Merchant's Reserve Rum.





    Category leader Bacardi is spearheading a category initiative On the premiumization of rum, together with the launch of two new superior goods --Bacardi Ariejo Cuatro and Bacardi Gran Reserva Diez. Are mm consumers trading up? Is premiumization helping mm earnings, like it's with whiskey and tequila? Yes and no, depending upon whom you ask. "Without a doubt premiumization is helping mm sales," says Ricardo March, vice president of revenue for Varela Imports, whose portfolio includes Ron Abuelo. "People are drinking less but better quality."



    As an example, March cites Ron Abuelo Centuria, a limited-edition that retails for $140 a jar. High-end on-premise accounts have been pouring it for $35 a shooter with great success, he says. "We have started to find the premiumization fad that changed whiskey and tequila have an effect on rum. For the last several years, while the general category volume continues to be flat to slightly declining, superior (super and ultra-premium) mm have been posting strong growth," says Flor de Cana senior brand director William Orsbum. "The high-end of this category is going to be the future of rum." Sounding an opposing viewpoint is Hannah Venhoff manufacturer at Heaven Hill, whose portfolio includes the Admiral Nelson's and Blackheart spiced mms. 'Today customers are still searching for worth," she states.



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    This goes hand-in-hand with the propensity for customers to explore new goods. Trying something new is vital, however, the goods have to be at discounted cost points. Research indicates that consumers in the rum category have the maximum propensity for impulse buy compared to other spirits categories, '' she adds. Rum manufacturers can also be borrowing inspiration from whiskey makers, offering products with unique barrel finishes and only barrel expressions. "You will find these whiskey brands making versions with mm barrel finishes, like Balvenie and Tullamore. Rum must figure out how to sneak back that notion," finds Josh Hayes, senior brand manager for Sailor Jerry Spiced Rum. "Consumers might want to observe rums with different barrel finishes and age statements, the same as with whiskey."