Rum Beverage Media

The new Rhumbar at the Mirage Hotel in Las Vegas

from tiki to premium: rum keeps growing By Jack Robertiello

The Zombie, Rhumbar

here are many contributors to rum’s surging popularity today: the growth of Latin culture and population, the increasing number of flavored rums and the country’s love affair with the Mojito are only three. But don’t forget the effect of Tiki.

Based on the celebrated work of two restaurant pioneers of the 1930s (Donn “the Beachcomber” Beach and “Trader Vic” Bergeron), the South Pacific-themed fad has made its way back as a component in many bars today. Best known for wacky Polynesian décor, bamboo fixtures, island bric-a-brac

and gaudy serving vessels like volcano bowls, it’s the drinks made with three, four or more rums that have put Tiki back on the map. And while many of the rum-focused operations are only tangentially Tiki, they have discovered the wisdom of stocking 50 or more rums at a time, and of developing

customer loyalty through education about its history and about regional and stylistic differences in production. Even brands are making the Tiki connection: Tommy Bahama Rum recently introduced some collector’s edition value added packaging that embodies a Tiki theme through artwork, textured packaging and summer cocktail recipes. Bacardi’s new Seven Tiki pays tribute to the South Pacific legend of Polynesian navigators, The Great Fleet, and the Tikis they carved into seven canoes. This spiced rum is made from quality sugarcane, sun-baked Indonesian nutmeg, Madagascar vanilla beans and other mellow spices.

CATEGORY FOCUS Martin Cate, who helped establish Forbidden Island in Alameda, CA, as an international Tiki destination, soon will open Smuggler’s Cove in San Francisco, a bar designed to celebrate rum with Tiki drinks, traditional Caribbean beverages including those served in pre-Prohibition Havana, and a selection of rare rums. “From having a very traditional Tiki bar with a good rum selection, I found people really love Tiki drinks, but I wanted to broaden the spectrum as I learned more about rum,” Cate says. “Tiki drinks are a great part of classic cocktails but rum’s story is so much older, and people in the Caribbean have been drinking some wonderful, elegant and sophisticated rum cocktails.” Cate intends to broaden even the selection of rums he serves from the well, making classic Bajan cocktails with rum from Barbados, or Cuban drinks with lighter, Cuban-style rum. In Las Vegas, the recently opened Rhumbar, at the Mirage Hotel is far from Tiki style, but behind the bar guests find 50 or so rums and the drinks include Tiki classics, says Michael Frey, managing partner. A modern interpretation of classic Caribbean culture, Rhumbar’s menu includes such drinks as the Trader Vic-inspired “1944 Mai Tai” and “Donn the Beachcomber’s Zombie”. It’s a national trend. At the RumBa at the InterContinental Hotel in Boston, nearly 100 rums and rum-based drinks make the menu, including the “Caribbean Swizzle” (Gosling’s Black Seal, lime juice, Angostura Bitters and pineapple ginger beer) and the Mai Tai (Appleton Reserve 15 year old, Barbancourt Estate Reserve, orange curacao, orgeat rock candy syrup and lime juice). This fall, Skyy Spirits’ Flor de Caña is illuminating a rum cocktail specialty: the punch. NYC bartender Phil Ward, known for his trendy tequila bar, Mayahuel, is collaborating with Flor de Caña to create signature punch recipes using seasonal ingredients like cinnamon and teas. Of course, the Mojito has a lot to do with breaking the rum and cola habit (though anecdotal bar reports indicate the tandem still dominates). But with RumBa and other bars using fresh squeezed sugarcane and Caribbean mint in their Mojitos, tweaking recipes with grilled pineapple and using more pricey rums, it’s no wonder that premium rums grew 8% in 2008, according to the Distilled Spirits Council (DISCUS).

Rum Marketing The Mojito offers many marketing opportunities. Don Q rum has been ramping up its U.S. expansion through events including a reception at New York City’s Jazz at Lincoln Center, where Esteban Ordonez of NYC bar Apoteke presented his version of a Mojito using Don Q Grand Añejo and yerba buena, while mixologist James Menite of the Porterhouse restaurant created the “Rum Plum” and “Caribbean Club Punch” using Don Q Cristal. “It's a good time to be a fan of premium rums, with more brands from more countries now available,” says Dori Bryant of Polished Palate, who has hosted rum events since 2002. “When I held that first event, there were precious few experts focusing on cane-based spirits. Now there are dozens who devote volumes to reviewing and promoting rum.” As the rum category has grown, more suppliers are developing products and introducing new brands. Diageo is building support for their national launch of Guatemalan Ron Zacapa by highlighting its quality as a standalone beverage, unusual for a category where mixability has long been the keyword. Likewise, Infinium Spirits’ popular Zaya Gran Reserva Rum is produced in Trinidad, where the rum rests in medium charred white oak barrels, for a minimum of 12 years. The result is a rum that is smooth and fullbodied, meant to be sipped. Making that connection with other high-end spirits helps rum’s imagery at the premium end, says John Pennacchio, director of spirits for Kobrand Corporation, importer of Jamaica’s Appleton rum. Making consumers aware of Appleton’s sipping quality is the goal of a new ad campaign, “Sip Up,” aimed at whiskey and brown spirit drinkers. “We’ve seen a heightened consumer demand for a more flavorful and complex taste experience, which plays perfectly to our Appleton Estate distilled rums,” says Pennacchio. One ad reads: “It spent 12 years in a barrel. The last thing it wants to see is the inside of a blender,” while trade info communicates how Appleton is made from estate-grown sugarcane in copper spot stills.

Appleton gets its ‘Sip Up’ message across with outdoor advertising

Ron Matusalem

Ron Abuelo

Other rums are working hard in this sipping arena. Ron Abuelo is another estategrown super-premium rum, produced in Panama by Varela Hermanos. According to Steve Armstrong, national sales manager for Varela Imports, the company intends to expand beyond Florida, where it is especially popular, and New York. “Aged rum is easier to get into than Scotch and even bourbon,” says Armstrong. “For most consumers, it’s an easier entry point for straight spirits.” The company currently offers an Añejo and Añejo 7 Year Old, and the Añejo 12 Year Old rum will be rolled out later this year via a recently signed deal with Van Gogh Imports for broader U.S. distribution.

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CATEGORY FOCUS

Premi

um Rum Since 1760

- from Andrea Bearbower, Cruzan brand education manager ■ Rum is made in most parts of the world where sugarcane is produced, but most come from the Caribbean with about 85% of the volume produced in Puerto Rico. ■ Rum continues to be the second largest distilled spirits category. IWSR forecasts that rum will continue to grow from 22.7 million cases in 2007 to 28.7 million cases by 2012. Additionally, as the economy becomes more uncertain, consumers flock to familiar cocktails and more reasonably priced spirit categories, like rum. ■ The spirit made from fermented molasses came to be called rum in English, rhum in French and ron in Spanish. In the Caribbean, it was considered a cure-all for various tropical ailments and afflictions. Plantation owners also sold it to naval ships that were stationed in the Caribbean, often offering a discount in order to keep friendly ships close by and pirate ships away. ■ Through Prohibition and into the ‘30s, Americans began visiting the Caribbean, in greater numbers, returning from vacations with a taste for Planters Punch and other tropical cocktails. The Mojito, for example, enjoyed its first wave of popularity during the 1930s. It was discovered by Americans in Havana and made fashionable by Ernest Hemingway. ■ The ‘40s saw the Mai Tai emerge as a popular “exotic” cocktail. Throughout the ‘60s and ‘70s, as vodka became the dominant white spirit in America, countless tiki bars kept Piña-Coladas, Daiquiris, Cold-Rum Punches, Hot Toddies and other rum cocktails on the drink menu. ■ The mojito started to come back strong in the ’80s, beginning in Miami’s South Beach. In the early ‘90s an interest in Nuevo Latino cuisine brought more classic rum cocktails back to the table – a trend that continues today.

2 parts Cruzan Aged Light 2 Parts Cruzan Aged Dark Dash bitters 1/4 parts simple syrup 1/2 parts fresh lemon juice 1 1/2 parts fresh orange juice 1 1/2 parts fresh grapefruit juice Service Provider: Beam Global Spirits & Wines, Inc.

Trading Up Even in such tough economic times, brands see the wisdom in adding top shelf extensions; Mount Gay has released Mount Gay 1703 Old Cask Selection, an aged premium dark made from rums 10 to 30 years old. The new label’s suggested retail price nears $100. Marketing is still key for high-end rums: in addition to Tiki packaging, Tommy Bahama has its own bar at the new Yankee Stadium in New York, a branding opportunity meant to capture the essence of the Tommy Bahama message to relax, have fun and enjoy life to the fullest. Other brands are focusing on Internet marketing. Pyrat rum’s new website gives consumers an opportunity to learn more about its first consumer-focused brand campaign to support the high-end rum from Anguilla. Trade-focused print advertisements for Pyrat, “the enlightened ultra-premium dark rum,” started appearing in 2008 in trade publications. “Rum was one of the top growth categories in the spirits industry last year, up 3% from 2007,” says Matt Carroll, chief marketing officer at The Patrón Spirits Company. “As the popularity of rum continues to increase, we see great potential for more people to discover and enjoy our portfolio of ultra-premium selections.” Even rums from the Dominican Republic, long neglected in the U.S., are taking advantage of premiumization. Originally, Ron Matusalem Rum was founded in Cuba in 1872. Since it was forced out of the country by Castro, garnering the nickname “rebel of rums”, Matusalem, part of the Proximo Spirits portfolio, is now produced in the Dominican Republic. Its distillation and blending techniques uniquely come from the solera aging system familiarized by sherry and brandy production. There is a longstanding fascination with Cuban tradition stateside and Matusalem manages to capture its spirit. Brugal Extra Viejo, for the first time available in the U.S., is being promoted as sippable straight or on the rocks. The recent launch rounds out the collection from the Brugal family, making rum in the Dominican

Tommy Bahama’s bar in new Yankee Stadium

Vizcaya

Brugal

Republic since 1888. Brugal is the largestselling rum brand in the Dominican Republic and among the top five rum brands in the world, and Extra Viejo is a blend of their older reserves. Also from the DR comes Vizcaya VXOP Cask 21, following a Cuban tradition since 1960, using fresh pressed sugarcane juice fermented and distilled in small batches and aged in oak barrels that formerly held bourbon. This process, more common in French Caribbean rums like Rhum Clement and Barbancourt, has made Vizcaya a frequent award winner at competitions lately. For Atlantico, another super-premium product, the rums made in the Dominican Republic hold great promise. Atlantico is made with small batch, aged rums blended together, and the blend is then married in small bourbon barrels for a year or two. Then, using a solera process, the rums rest for 15 to 25 years.

CATEGORY FOCUS spiced rum, has expanded its line to include Coconut, Raspberry and Vanilla offerings. Pernod Ricard-owned Malibu has recently rolled-out Tropical Melon, which joins original coconut, banana, mango, passion fruit and pineapple in the lineup. Like with other Malibu flavors, Tropical Melon starts with coconutflavored rum, with watermelon and cantaloupe flavors added. Malibu will spend much of the $3 million launch online. “The Malibu consumer is generally 21 to 26 years old who spends much of their lives online, and that’s Cruzan where we’re driving our activiMalibu’s new Island Melon makes a splash ties,” says Lisa McCann, senior brand manager for Pernod Ricard. “We’re getting high tech, working with sites like Hulu to integrate the melon idea, and we’ve developed widgets and online applications for the iPhone, and viral videos.” The brand is also hooking up a two-year deal as official spirits sponsor of the Association of Volleyball Professionals (AVP) Crocs Tour, integrating signage and a sponsor “village” into the nationally televised events and supporting the program with local advertising and retail display materials. And they have partnered with Reefcheck, a non-profit monitoring the world’s island reefs. A limited edition bottle launched in July is part of the program. The recent roll-out of Pernod Ricard’s offBacardi’s Dragon Berry Captain Morgan premise focused Seagram’s Smooth Brazilian Rum (white, citrus and raspberry) ramps up the competition in the nationally-supported value sub-category, with retail promotions, trade advertising, a range of POS materials, off-premise sampling and targeted Internet programming to reach younger consumers. Premium brands may be hot right now, For spiced rum Captain Morgan, marbut flavors have also played a role in growketing is key. The brand has ended its “Got ing the category altogether. Category leader a Little Captain in You” campaign, and Bacardi is rolling out new packaging for its launched one designed to tie the brand to eight flavors and launched strawberry-flalegal drinking age males. Called “Calling vored Dragon Berry, made with anti-oxidant all Captains,” it includes television and onrich dragonfruit. Bringing on new flavors is line spending, focusing on 21- to 25-year important in building brand loyalty, says old males who spend at least 10 hours per Gordon Chisholm, brand director. “People week on social websites like Facebook and are relying on trusted brands in economic MySpace, and texting and Twitter. The hard times.” Bacardi is also adding Bacardi brand will continue its off-premise focus Classic Cocktail Raspberry Mojito, second on key time periods – Mardi Gras, the in its ready-to-drink portfolio. NCCA Men’s Basketball Tournament, MeAdmiral Nelson’s, long recognized for its morial Day, Fourth of July, Halloween and

Creative Branding

year-end holidays. This summer they’ll get Captain Morgan and cola to compete with domestic beer through what marketers are calling a “40 pack” – a 1.75 L bottle of Captain Morgan with a 2 L bottle of cola. Also of significance, they are introducing Parrot Bay Strawberry and Parrot Bay Orange, two new fruity, mixable flavors. Sailor Jerry tapped into film to promote their Original Spiced Navy Rum. The feature-length documentary, Hori Smoku Sailor Jerry, focusing on the famous tattoo artist who branded his ink on thousands of World War II soldiers based in Hawaii, was released this summer, adding a human dimension to the brand. 10 Cane is engaging the on-premise with its new logoed pitcher. Filled with icy cold mojitos or fresh daiquiris, the 10 Cane Pitcher is ideal for rooftop, terrace, patio, beach and pool venues, and holds five to six cocktails. All venues that feature the 10 Cane Pitcher will receive custom bar staff and waitstaff training as well as program tools and point of sale materials. The St. Croix, USVI-produced Cruzan, which recently moved to Beam Global, has a redesigned bottle upgrade meant to highlight its origins and advance the brand up the premium ladder. A national advertising campaign focuses on the brand’s St. Croix origins. “Beam has done testing on who is the rum consumer, and we’ve developed a profile of what we call the rum tribe, a group with a really high optimism level and we’re using that in advertising,” says Andrea Bearbower, Cruzan brand education manager. With nine flavors (banana, black cherry, citrus, coconut, guava, mango, pineapple, raspberry and vanilla), Cruzan has developed a reputation as a casual rum, but its Single Barrel has garnered support from rum aficionados and Cruzan151 proof will return to the U.S. soon. Its return in one way can be credited to the Tiki resurgence, especially the popularity of the Zombie, which requires not only white, gold and dark rum, but also a 151 float. No wonder Donn the Beachcomber limited customers to two on any given night. Rum in general doesn’t deserve the head-pounding, party punch reputation it once earned through misuse of drinks like the Zombie, but when well made, Tiki drinks show how versatile and delicious rums are, yet another way to help speed the category’s premiumization. ■