TheRumLab Industry Newsletter Week #18 of 2024
The Rum Lab
TheRumLab - Our main focus is Rum Education. We do so through our digital magazine, events, infographics, and more.
PRISCILA GARCíA OLMEDILLA Ron Arehucas, Export Manager
As Export Manager, Priscila is a passionate, wanderlust, easy-going person who is always keen on learning and growing. Her almost 8 years in Destilerías Arehucas in two different positions, have given her the expertise in foreign markets around the world and how they consider and accept the rum depending on the culture, the geographic area and the level of expertise in this spirit.
TRL: What does the rum mean to you? What made you fall in love with rum and when did it happen?? Rum means history, since for me every rum has its real tail behind the production process. But it also means this time of the day when you finish the responsibilities and you share a moment with friends to chill and have fun with some good background music.?
TRL: ? Three essential characteristics that define the rum according to your perspective:? Versatility, softness and tradition.
TRL: What is the most important contribution you have made in the rum industry?? The knowledge about how the product works between the different nationalities that visit the distillery and ?Gran Canaria in general, since my first six years in the company, I worked as a tourist guide at the visitor’s centre. These years gave me the opportunity and the experience to analyze and get to know the needs of every client depending on where they came from, and this information is extremely helpful for the Exportation Department.
TRL: ?Benefits that the rum industry has given you.? Professionally, I have gained an analytical mind, and I have learnt to enjoy my job by adapting myself to the culture of every country and every market in which we sell Arehucas. Personally, the rum industry has allowed me to have a second family that has the same love for the brand and the same passion for the rum and its background.
TRL: What’s another thing you are passionate about, in addition to rum? Why?? It is very typical but my passion is travelling. I find travelling as an investment and not as a waste because it is possible to discover a lot just by spending a few days in a foreign country talking to people and observing their traditions. Furthermore, it is therapy.?
TRL: ? What is your favorite place for drinking rum?? Any place with good soft weather and a lovely sunset view is perfect.
TRL: ?Favorite drink + Recipe:? I love a well done Dark and Stormy, but I must say that our Global Ambassador has found my weak spot with a Rum-Espresso Martini made of Arehucas 12 y.o., a good espresso and a dash of tiramisu syrup.
TRL: ?Why is it important to educate the rum consumer?? Because drinking rum must always come with some education to appreciate the complexity of its notes, and the difference between the types of rums according to their production processes. But also it is necessary to be educated about the history, so if you don’t want to become an expert, at least you know you are drinking a historical spirit with centuries of tradition.
TRL: Any tips to train the palate and taste a good premium rum?? Always start smelling what you are going to drink and always finish taking a deep breath after sipping, but the most important thing, always be open-minded about the product you are about to taste.
TRL: What is your advice for new generations in the rum industry?? Never stop learning and enjoy every experience that working in this industry may give you.
TRL: How can people learn more about you? Website? Social media page?? www.arehucas.es? https://www.instagram.com/arehucasron/? https://www.instagram.com/palmprislove/
Women Leading Rum confirms its participation in? Rhum Fest Paris 2024
Women Leading Rum will be featured at the prestigious Rhum Fest Paris 2024, next to be held in the city of Paris. This event, crucial to promoting diversity and female empowerment within the rum industry, will be held from May 4 to 6 at the Parc Floral in Paris, an emblematic setting for meetings of this magnitude.
Larissa Arjona, Executive President of Women Leading Rum and Export and Marketing Manager of Ron Abuelo, will lead the group of women influencers at this event. Arjona is recognized for its history in the communication of international brands and its commitment to equal opportunities in the sector.
Along with her, prominent figures such as Alexandra Alfaro, Corporate Marketing Director of Liquor Industries of Guatemala; Angelique Jullienne, Global Marketing and Communication Director of Maison Ferrand, in charge of brands such as Plantation Rum, Citadelle Gin and Ferrand Cognac; and Marie El Hanafi, global ambassador of Ron Millonario and Rum Nation, will share their experiences and vision to promote a more inclusive environment.
Rhum Fest Paris will not only be a stage to highlight Women Leading Rum initiatives, but also a celebration of rum culture, showcasing the latest innovations and trends. The festival will include workshops, exhibitions, and panels that will explore everything from distillation techniques to market strategies.
The event not only promotes a comprehensive view of rum, it also strengthens networks between professionals, combining the efforts of Women Leading Rum with the rich tradition and novelties of Rhum Fest Paris to foster a more dynamic rum industry.
We invite all interested parties to join this meaningful event and explore the various activities that Rhum Fest Paris 2024 has to offer. This collaboration is made possible by the support of sponsors including Ron Abuelo, Planteray, Botran, Rum Nation, Ron Millonario, Centenario and Con Designe.
To learn more about Women Leading Rum and the event, visit www.womenleadingrum.com
Mount Gay Eclipse Navy Strength Rum Review
Jim Vorel - 4/30/24 - Paste Magazine?
If there’s one thing that the tiki cocktail geeks of the world are always clamoring for, it would be more high-value overproof releases from some of the biggest producers in the rum world. There’s no shortage of brands available from the likes of say, Appleton Estate in Jamaica, or Mount Gay in Barbados, but why are cask strength expressions so tough to come by? How about a light-to-moderately aged expression, but with the strength to stand up in rum-forward tiki drinks or classic cocktails? That’s what Mount Gay has delivered with its new Eclipse Navy Strength Rum, a product that represents a pretty fantastic value at its $30 MSRP.
This is, of course, the upgraded big brother of the company’s flagship Eclipse Heritage Blend. That bottle has always been a lightly aged, blended rum–and when we say “blended,” we mean a blend of column still and pot still distillate. It’s not the smoothest rum in the world, thanks to a mere two years of aging in reused American whiskey casks, but at a mere $20 MSRP it’s not exactly a selection meant for neat drinking first and foremost. Eclipse is a classic blending rum for basic cocktails and mixed drinks, when you want some aged character rather than using a brighter unaged rum.
Eclipse Navy Strength, on the other hand, has been massively beefed up in pretty much every way a rum geek would want to see. It carries an older age statement, being a blend of 2-4 year old column and pot still rums, and the company notes that it contains more of the flavorful pot distillate in the blend than the original Eclipse. And rather than the introductory 40% ABV (80 proof), this is presented at the so-called “Navy Strength” proof point of 57.1% (114.2 proof), even though the historical accuracy of that particular figure?is sketchy at best according to rum historians.?Regardless, this is an older, richer and far punchier version of that flagship product, and the best aspect is easily the fact that it costs only $10 more, with a $30 MSRP. Given its “limited edition” status, it’s rather shocking that Mount Gay didn’t try to capitalize with a higher price point here, but we applaud the value this represents.
So with that said, let’s get to tasting this upgraded Eclipse Navy Strength and see how much it has grown in stature.
On the nose, this isn’t actually immediately as bold or ebullient as I figured it probably would be for the proof point. You do get plenty of ripe banana and a lot of fruit in general, touching on bright pineapple, but it’s not exactly exploding out of the glass on first inspection. I’m getting plenty of vanilla extract and a little milk chocolate as well. The ethanol is actually fairly mild here, although it does read as young or a little “raw” in nature. Regardless, if someone handed this to me blind, I really don’t think I would peg it as 114 proof just from the nose alone.
On the palate is where Eclipse Navy Strength really comes to life. Here it’s much more assertive, exploding with waves of allspice, molasses cookies, heavy vanilla and slightly syrupy sweetness. There are traces of grassy sugar cane that have held over, along with dessert banana, baked peach and some pineapple fruitiness. The vanilla in particular is a huge note, contributing a creaminess and hints of brown sugar. The oak isn’t particularly present, certainly not as it is in Mount Gay’s own roast-forward Black Barrel, leading the primary impressions to be of fruit, vanilla, sweetness and trailing spice. The additional pot still distillate is certainly being felt in this greater degree of flavor, compared with the original Eclipse blend. As on the nose, the booze character here is a little raw or solventy, giving away the still young overall age of the blend.
At the end of the day, this probably still isn’t a neat-drinking rum for most consumers, but where it’s really going to shine is in more potent and characterful mixed drinks and cocktails. For the $30 asking price, it fills the role perfectly: High-proof, lightly aged, blended Bajan rum that is bursting with flavor. I could see this becoming an instant classic in the tiki world, or in traditional Barbados classics like the Corn ‘n Oil.
Honestly, this feels like a product that should have existed all along. Why is this a limited release, again? Can it be permanent instead? There are plenty of cocktail geeks out there who would appreciate being able to find this on the shelves all year round. Regardless, this is one to stock up on while it’s around.
Distillery:?Mount Gay?City:?Saint Lucy, Barbados?Style:?Blended molasses rum?ABV:?57.1% (114.2 proof)?Availability:?Limited, 700 ml bottles, $30 MSRP
Break Up With Bourbon And Try A Critically-Acclaimed Rum Instead
Katie Kelly Bell - 4/29/24 - Forbes
Collectible rum deserves consideration among bourbon and whisky lovers. Rum is beginning to make waves the way small batch tequila did many moons ago—and the hottest rums in the market now are arguably the expressions from Altamar Brand’s?Foursquare Rum Distillery. Brandon Cummins, Altamar’s director of education, has witnessed the product’s skyrocketing popularity. “The first three releases we had, in 2015 and 2016, took nearly three years to sell through and now we are selling an entire release before the container touches customs. It’s all pre-sold before it lands.”
The critical acclaim is there too. Foursquare’s wins include the 2021 IWSC Outstanding Spirits Producer, and ISC Rum Producer of the Year six years running. Yet, admits Cummins, consumers need to be aware of what they are buying with regard to rum; “Collectible rum has had challenges taking off in the US market because there is so much obfuscation in the category.”
By obfuscation he means muddled information about additives and sugar content, among other things. “I am astonished by how many rums still have sugar, added flavor or coloring—many brands that have a perceived really high value have added sugar and color.” Foursquare makes a point of calling out that their rums have nothing added –no sugar, additives or coloring—but, notes Cummins, “It’s a challenge for us when consumer standards have been set by expressions we would recognize as liqueur. If I add 30g of sugar to a product of course it will be delicious,” and very different tasting to a rum with nothing added. Right now, says Cummins, “Rum liqueur is effectively being sold right next to high-end craft rum. Yet, they are two very different things.”
Foursquare’s offerings, which are distilled, aged and blended in Barbados, are more in the whisky and bourbon lane—which makes them a nice, refreshing alternative to fans of those expressions. “We see a lot of whisky collectors purchasing our rums,” says Cummins. “It’s a new frontier for them.” Cummins adds that his father-in-law is a classic example. Once a die-hard single malt drinker (accompanied by a cigar), Cummins challenged him to pair a cigar with one of the Foursquare rums. It worked. “Today he is one of the most loud and outspoken advocates for our rums.”
Foursquare’s signature flavor profile shows notes of toasted coconut, bold fruits such as dark cherries and plums along with a caramelized citrus or orange peel note. And, says Cummins, “varying degrees of funk as well as notes of caramelized banana.”
Single Blended Rum, Aged for 12 years in a combination of first, second and third fill Ex-Bourbon barrels, bottled at 60% ABV. No Color. No Sugar. No Additives. No Filtration. Distilled, Matured, Blended & Bottled entirely on island in Barbados. $119
March DTC Wine Shipment Volume Down 10 Percent Versus Year Ago
Source:?https://www.winebusiness.com/
April 24, 2024
Direct-to-consumer (DtC) shipment value fell 3% versus a year ago to $457 million in March, WineBusiness Analytics/Sovos ShipCompliant reported. Volume for the month fell 10% to 661,231 cases. The declines saw shipment value fall to its lowest level since 2020, while shipment volume approached 2019 levels. Nevertheless, the average bottle price of shipments remained strong, rising nearly 8% versus a year ago to $57.61. This was the third-highest average ever recorded.
U.S. wineries outside the West Coast account for a small but active component of DTC shipments. Value increased 2% in the 12 months ended March to $228.9 million, while volume fell 1% to 792,711 cases. Those shipments reflected the diversity of U.S. grape growing outside the major regions with red blends being the top wine type with $49.4 million worth of shipments followed by Riesling with $14.8 million and Cabernet Sauvignon at $12.7 million. A miscellany of “other” wines and blends holds a 36% share of channel value, however, indicating that the main varieties are dwarfed by the diversity of production in the rest of the U.S. The average value of shipments is $24.06, with the single biggest segment of shipments – 47% – falling between $20 and $39.99 a bottle.
UCVF to distribute Fortin Rum in France
Miona Madsen – 04/25/2024 – The Spirits Business
Union Commerciale des Vins de France (UCVF) has secured exclusive distributor rights for Fortin Rum in the French market.
The Paraguayan rum, Fortin, has expanded its distribution by partnering with UCVF, a French Archamps-based distributor of exceptional wines and spirits.
This collaboration marks a significant milestone in the journey of Fortin, a brand deeply rooted in craftsmanship, tradition and quality.
The Fortin distillery uses hand-cut sugarcane, cultivated on-site, to make sugar honey for its rums.
Along with the newly founded partnership, Fortin is bringing its trilogy collection – Heróica, Epopeya and Guarani – to the European market.
The collection is said to ’embody the spirit of Paraguay’s rich heritage and cultural tapestry’, with European influence.
The first of the expressions, Heróica, is a blend of five- to six-year-old rums aged in American oak casks and boasts ‘exotic fruit aromas and a creamy finish’.
Fortin Epopeya is a five-year-old rum aged in American oak barrels and finished in orange liqueur casks, resulting in sweet notes of Paraguayan oranges and hints of vanilla on the palate.
The third and final expression, Guarani, celebrates the convergence of indigenous and colonial influence and is finished in maté liqueur casks to create herbal notes with eucalyptus on the finish.
All three expressions are offered at 40% ABV in 700ml bottles.
The distillery will showcase its range at the 2024 Rhum Fest Paris from 4-6 May.
The brand joins UCVF’s portfolio of rums available in France, including Auténtico Nativo, Kong and Labourdonnais.
Fortin rum distillery was founded in 1993 by Javier Diaz de Vivar.
Bacardi India elevates Sameeksha Uniyal as the regional brand head of Bacardi in the AMEA region
Staff – 04/25/2024 – AFAQS
Sameeksha, as a former brand lead, led brand growth and spearheaded marketing initiatives for Bacardi
Bacardi India, the privately held spirits company, has announced the elevation of Sameeksha Uniyal to regional brand head for AMEA (Asia, Middle East & Africa) this April, in a bid to amplify business growth in the region.
Shaping the success of Bacardi India’s rum portfolio since 2016, Sameeksha previously served as the brand lead for BACARDí in India and led growth for the associated brands in the country. During her seven year tenure at the company, she has spearheaded a variety of major marketing initiatives; most recently directing the rollout of BACARDí’s It’s A Mood campaign in India. In her new role, she will manage marketing and business operations for BACARDí’s rum brands across the greater AMEA region.
Speaking about her new role, Sameeksha said, “In my professional journey, my time at Bacardi has been driven by passion and the ambition to break new ground; I am beyond delighted to be collaboratively building the Bacardi brand portfolio across the AMEA region. It is a new beginning to a very exciting journey, and I look forward to leveraging my experience to work with our exceptional teams and drive greater consumer affection and passion for our brands across diverse cultures and markets.”
Taking up the baton from Sameeksha, Ashish Jha will now lead the BACARDí rum portfolio in India, moving up from his previous position as senior brand manager for BACARDí rums & BREEZER.
?Hawaii's Kuleana Rum Works to boost sales, marketing with equity raise
Staff – 04/25/2024 – Gobaldata.com
Kuleana rums are distributed by Southern Glazer's Wine & Spirits in 12 US states and the company plans to expand into all 50, as well as abroad.
Hawai‘i-based distillery Kuleana Rum Works is crowdfunding $1.23m to boost its sales and marketing presence in the US and expand internationally.
The company's namesake rum is distributed by Southern Glazer's Wine & Spirits in 12 US states and Kuleana Rum Works plans to expand into all 50.
CEO and founder Steve Jefferson told Just Drinks he was also eyeing international expansion and is in talks with potential distributors in the UK, where “rum is getting big”.
Asia is another focus and the distillery is in conversations with importers in South Korea, Singapore and China.
Jefferson said the fresh funding will be used towards sales and marketing, particularly to support Southern Glazers in the US. At the time of writing, it had raised $1.12m of its $1.23m goal.
Southern Glazers has “first right of refusal” to distribute Kuleana rums in every US state and Jefferson hopes to expand with the distribution major.
Kuleana Rum Works has a four-strong sales team and Jefferson said: “As we open new states we want to keep hiring more and more”. “The more we can provide value to our partners, the more they're going to like us,” he explained.
Journalist-turned-distiller Jefferson founded Kuleana Rum Works in 2013, inspired by tasting rhum agricole – a style of rum made from fresh sugar-cane juice – on a trip to Martinique.
“I had no idea rum could be this good and nobody was doing it,” he said. Around 3-5% of the world’s rum is made from fresh sugar-cane juice rather than molasses, cane syrup or cane sugar.
The brand's core range includes unaged agricole, a light rum, aged rum and “sipping” rum ranging from $34.99 to $84.99. Kuleana Rum Works also imports small batches of rum from other producers which it sells as limited releases in Hawaii alongside batches of Kuleana aged agricole.
The rums are “additive free”, with no added colours, flavours or sugar. “That, especially in the US, is extremely rare,” Jefferson said.
Jefferson describes the company as “Dirt-to-Mai Tai” – it owns a sugar-cane farm, distillery, tasting room and visitor experience as well as a restaurant-bar in Hawaii.
Long term, he hopes a larger supplier will acquire or invest in the business and incorporate the rum into its portfolio.
“At some point [the goal is that] a larger supplier will go: ‘Okay, these guys are winning all kinds of awards, they have the best rum out there, they make it from heirloom Hawaiian sugar canes – we can't compete with this,’” he said.
“My goal is to provide as much value for our shareholders as possible and a very attractive outcome is: you get a big sale. That is definitely a top-three outcome.”
Finding ambassadors for Kuleana Rum Works
The equity round, on crowdfunding platform StartEngine, follows two main raises of around $6m each from private individuals. To date, the company has raised around $14m (not including the live round).
Jefferson explained he wanted to crowdfund to recruit “everyday people” who will become ambassadors for the brand – citing the 1,000 true fans theory as his inspiration (the idea that 1,000 fans is the ultimate number for a brand’s success).
“It's great to have rich guys [investing] but they're not going to go out and insist their bartender [stocks Kuleana]... We have investors that have no idea that they're investors because they have teams of people investing on their behalf.
“But if you’ve got somebody whose got $1,000 or $2,500 in there they want to see this succeed. They're proud to share it with their friends. And that's what we really need.”
Jefferson said having those 1,000 “true” fans will have “an enormous impact on our sales efforts” due to alcohol sales laws in the US. (The country’s three-tier system requires producers go through a distributor and then a retailer rather than selling directly to customers in most US states.)
“If the consumers are pulling, because they're excited, and they're asking the stores, bars and restaurants for Kuleana rum, then then they are going to pull from the distributor. That's really what we want,” he said.
The business is valued at $25.19m and is projected to be worth $150m in five years, Jefferson said.
Asked about sales and profitability, he said the company was “intentionally not profitable” as it funnels all profit into growing the business.
Kuleana Rum Works has invested over $1.5m to upgrade its distillery and has enough capacity to get through its “teenage years”. “We're out of startup mode, and we're in scaling mode,” Jefferson said.
Kuleana rums are sold 50-50 in the on-premise and off-premise, including retailers Wholefoods and Safeway.
Its on-premise venture, Kuleana Rum Shack, serves around 70,000 people a year and Jefferson described it as a “gigantic marketing funnel”. It also opened a tasting room next door at the start of 2024 and aims to serve 5-10,000 people in its first operational year.
Potential for ‘super-premium’ rum
Asked about the potential for growth in the rum category, Jefferson said while the category is “barely declining”, the ‘super-premium’ rum category – including bottles with an RRP of $30 and above – is “blowing up, just like Tequila did before”.
Citing data from Diageo, Kuleana’s fundraising page highlights the super-premium rum category saw a CAGR of 27% in the US between 2016 and 2021.
Jefferson added: “A very tiny percentage of rum is super premium, so there's a lot of room for growth and it's growing really quickly.
“People want good stuff and they want great stories and they want excellent products. And we've always been committed to no colours, no flavours, no sugars, no additives – something which is actually fracturing the Tequila world right now as people are learning about additives.”
Luar Collaborates With Zacapa on Luxe Rum Kit Inspired by Beyoncé-approved ‘Ana’ Bag
Alfredo Mineo – 04/27/2024 – Yahoo.com
Zacapa and Luar designer Raul Lopez have collaborated on a collection that brings together fashion and spirits.
Luar’s Ana bag – which won Lopez the CFDA Award for Accessory Designer of the Year and brought Beyoncé to the front row of the brand’s fall 2024 collection at New York Fashion Week – inspired the Guatemalan rum brand’s kit that celebrates the Zacapa XO portfolio, a blend of rums aged 10 to 25 years that’s finished in French oak casks.
Unlike many rums that are made from molasses, Zacapa rums are made using the first press of sugar cane and fermented using a strain of yeast derived from pineapples, which enhances its aromas and flavors.
The Zacapa y Luar collection includes a custom shaker, cocktail spoon, linen cocktail napkins, glassware and leather petate coasters. Petate, which covers every bottle, is a woven art tradition in Central America; Zacapa employs over 700 women who produce the bands in Guatemala.
The collaboration is available on reservebar.com beginning May 1. The hosting kit is priced at $760 and the decanter at $200.
Saint James introduces 18-year-old rum
Miona Madsen – 04/24/2024 – The Spirits Business
La Martiniquaise-Bardinet-owned agricole rum brand Saint James has revealed an 18-year-old limited release.
The new edition joins the Martinique-based distillery’s range of seven-, 12- and 15-year-old age-statement rums.
Distilled in 2004 and slowly matured in ex-Bourbon American oak barrels, the 18-year-old rum is described as ‘the jewel’ of the collection.
The limited expression was curated by cellar master Marc Sassier and bottled in 2022.
“This very old rum is the fruit of an exceptional aromatic concentration without topping-up, after eighteen years of ageing in our cellars in the tropical climate of Sainte-Marie,” said Sassier.
Saint James’ 18-year-old displays ‘structured and full-bodied notes with fruity and finely spiced flavours’ throughout the palate.
Only 2,000 bottles of the release have been produced, bottled at 43% ABV.
The rum is available at selected retailers worldwide for €185 (US$198) in 700ml bottles.
Saint James’s origins date back to 1765, and since 1975, the estate has produced rum from pure sugarcane from its own plantations.
The Caribbean island of Martinique was granted an AOC (appellation d’origine contr?lée) in 1996 for its agricole rum.
In addition to the distillery’s age statement expressions, the product range includes white, gold, vintage and organic rums, and ready-to-serve cocktails.
In December 2023, the distillery revealed the fourth and last bottling of its Les Ephemeres Collection with Batch No.5.
French spirits company La Martiniquaise-Bardinet, which also owns the blended whisky brand Cutty Sark and Glen Moray single malt distillery in Scotland.
Tanduay Taps Into New Jersey’s Diverse, Growing Rum Market As It Signs Distribution Deal with Allied Beverage Group
Press Release – 04/28/2024 – EIN Presswire
NEWARK, NEW JERSEY, UNITED STATES, April 28, 2024 /EINPresswire.com/ -- Leading Philippine rum brand Tanduay is exploring opportunities for growth in New Jersey as it partnered with distributor Allied Beverage Group (ABG), LLC.
“Our goal is to establish a presence in the local spirits scene and bring the Tanduay drinking experience to the culturally diverse state. By partnering with ABG, we are confident that the brand will reach more customers,” said Marc Ngo, Tanduay International Business Development Manager and Senior Brand Manager.
ABG is a family-owned company created by the mergers of The Baxter Group, Inc., F&A Distributing Company, and The Jaydor Corporation as well as the August 2017 consolidation with Breakthru Beverage New Jersey. ABG is New Jersey’s largest and most comprehensive wine and spirits distributor and is among the 10 largest distributors in the United States.
According to Sara Harmelin, VP for Portfolio Development at ABG, New Jersey has a very competitive but good rum market that is diverse, dense, and affluent.
“New Jersey ranks in the top five liquor markets. There are 9.3 million people in the third smallest state by square mileage and most reside in the suburban areas outside of New York City and Philadelphia. It is the third most affluent and fourth most diverse per capita, which gives us a lot of opportunities across categories and price ranges,” she said.
Premium Rums for Sipping and Cocktails
Harmelin shared that Tanduay gives ABG a premium option that blurs the line between cocktail bases and sipping rums.
“We carry rums across the spectrum, but few portfolios offer speed-rack and sipping options in one. We’ve been waiting for rum to take off, and feel that Tanduay is another step in that direction,” she said.
With Tanduay, they can now also offer a premium and accessible rum that the world knows about.
“New Jersey has a diverse Hispanic population led by Puerto Rican, Dominican, and Central American immigrants and descendants who are always looking for a rum that really speaks to them. There is ample opportunity to grow this category across nightclubs and on premise accounts with the help of a great brand like Tanduay,” Harmelin said.
At the same time, she added, they want to offer the nearly 200,000 Filipino who live in New Jersey a taste of home.
“We are very excited to work with the world’s most popular rum. We are trying to diversify our portfolio to reflect the global nature of New Jersey’s consumers,” Harmelin said.
领英推荐
Bringing a Taste of the Philippines to More Markets
As Tanduay celebrates its 170th founding anniversary this year, the brand continues its international business expansion as it also further grows its local portfolio.
“We hope to enter more rum markets in the coming months and introduce our proudly Philippine-made rums to people across the globe,” Ngo said.
Founded in 1854, Tanduay continues to be one of the country’s most popular and awarded spirits brands. It is the only Filipino rum to be named the World’s Number 1 Rum for six consecutive years by Drinks International Magazine. It has also received the Brand of the Year Award for eight straight years from the London-based World Branding Awards.
Apart from New Jersey, Tanduay is present in several states including Arizona, California, Florida, Georgia, Hawaii, Illinois, Indiana. Kansas, Massachusetts, Michigan, Milwaukee, Minnesota, Nevada, New York, Pennsylvania, Tennessee, Texas, Washington, and Wisconsin.
Outside of the Philippines, it is also available in Armenia, Australia, Austria, Belgium, Canada, China, Costa Rica, France, Georgia, Germany, Luxembourg, New Zealand, Poland, Qatar, Singapore, Taiwan, the Czech Republic, the Netherlands, the United Kingdom, Ukraine, and United Arab Emirates, as of this writing.
Joseph Chiong
Tanduay Brands International
+1 714-588-6760
PIGEON Unveils Brand Restage for Lamb’s Rum Portfolio
Staff – 04/24/2024 – ?Advertising Agency
The repositioned Lamb’s lineup is now available at select retailers, bars, and restaurants nationwide
PIGEON proudly unveils the transformative brand restage of Lamb's? rum, marking a significant chapter in the brand's evolution.
A new brand positioning and visual identity paved the way for PIGEON to seize the opportunity to bring Lamb’s? brand identity to life throughout its portfolio with a captivating packaging revamp, aligning seamlessly with the new brand direction to inspire its consumers at shelf.
Olivier Chevillot, executive creative director at PIGEON Brands, emphasised the pivotal role of the newly introduced characters, "Leveraging the previously established Spiced Rum Serpent as the design direction, Pigeon created new characters to encourage flavour discovery through mysterious personalities, introducing the various rum flavours within the Lamb's? portfolio. This not only adds depth to the brand but invites consumers to embark on a journey of taste exploration. The inclusion of nautical characters, centralised around the Lamb's logo, serves as an immediate focal point for consumers, enhancing brand recognition."
Furthermore, Olivier added, "To add an element of intrigue and discovery, we crafted rich narratives for each product label, emphasised through intricate design details. We went beyond the ordinary, by creating a memorable experience for enthusiasts and novices alike, fostering a deeper connection with the brand."
“Rooted in a rich, nautical history, Lamb’s purpose to fuel unforgettable tales encourages consumers to live more spontaneously and gain new experiences”, said Kevin de Graaf, sr. brand manager at Corby Spirit and Wine. “Bringing that purpose and our nautical history to life, we set out with Pigeon to create the most adventurous bottle designs on shelf with our bold and intriguing characters.”
As Lamb's? Rum raises its sails with this dynamic restage, the brand invites consumers to explore not just the exquisite flavours within, but the tall legendary tales uniquely associated with each bottle.
The repositioned Lamb’s? lineup is now available at select retailers, bars, and restaurants nationwide.
Amber Beverage UK welcomes Flor de Ca?a Rum to premium portfolio
James Bayley – 04/24/2024 – Harpers Co
Amber Beverage UK (ABUK) has announced the addition of Flor de Ca?a to its portfolio.
The family-owned Nicaraguan Rum brand, which has a rich history dating back to 1890, will join ABUK's growing lineup of international spirits.
Distilled using 100% renewable energy and aged naturally without any sugar or artificial ingredients, the brand was the world's first spirit to be certified carbon neutral by the Carbon Trust and is also certified Fair Trade.
Flor de Ca?a boasts a range of premium rums, including the 12-year-old expression, the 15-year-old Eco expression and the exclusive 20-year-old 130th Anniversary Edition. Notably, the brand actively engages with bartenders worldwide through initiatives like the Sustainable Cocktail Challenge, further underscoring its commitment to sustainability and innovation.
Sam Thackeray, CEO of Amber Beverage UK, expressed enthusiasm about the partnership, emphasising Flor de Ca?a's alignment with ABUK's goal of becoming the UK’s leading sustainable distributor.
“A vital next step on our journey towards this goal is educating our teams, third-party brand owners and other stakeholders about the commercial exigency of making their sustainability agenda more sophisticated. Having a brand owner of Flor de Ca?a’s calibre on side for this journey is a fantastic asset,” Thackeray said.
Ricardo Selva, business development director of Flor de Ca?a, added: “It is vital for us to work with a partner in the UK who has the distribution network and experience to leverage our portfolio of premium rums aged up to 30 years.
“We are looking forward to building our partnership with ABUK, as they have dedicated on-trade, national and off-trade sales teams, with people based across all of England and Scotland.
“The team has expertise of working with the rum category, as well as seeding prestige brands into the market through strong relationships with premium on-trade operators, national scale customers, independent merchants and, of course, the off-trade.”
ABUK is part of the Luxembourg-headquartered Amber Beverage Group, which produces, bottles, distributes and markets a range of drinks including Moskovskaya Vodka, Rooster Rojo and KAH Tequila to over 70 international markets.
Crab Island: The rum made in Vieques that has its sights on the world
Cesiach López Maldonado – 04/24/2024 – El Nuevo Día
The Vieques distillery is keen on introducing the quality of its product worldwide, starting with establishing a presence at the Luis Mu?oz Marín International Airport
Vieques.- Every week, dozens of gallons of rum are crafted artisanally on Vieques as part of the operation of Crab Island distillery, which was founded a decade ago on Isla Nena and has since become the local rum brand.
“Crab Island Rum Distillery was born in Vieques and in the mind of Iván Torres. It all began 10 years ago in a small wooden house where he started making and distilling rum. Like many businesses, it started off on the streets, selling coquito and rum for Christmas, and that’s where the idea of distilling took root.?Iván was motivated to start distilling because Puerto Rico is the rum capital of the world, and he realized that artisanal rum wasn’t being promoted enough and there were few distilleries in Puerto Rico. That’s what motivated him to create the first still,” explained Eira Rodríguez, an employee who welcomes visitors and shares the business’ story with them.
With the aim of giving the product an identity that truly reflected its roots, Torres—a native of Vieques—set out to find a name for his business. Thus, Crab Island was born. But why Crab Island? What is the connection to Vieques?
“Even though Iván wanted the name to reflect something from Vieques for Vieques, he didn’t want put Vieques on the product’s label. Then, someone gave him a painting with a map of the Caribbean, and as he looked at it, he noticed ‘Bieque’ was written on it, but under that was ‘Crab Island.’ So, Iván told his friend: ‘I have the idea for the product, I’m going to trademark it, and that’s the one.’ That’s where the idea of Crab Island comes from. And that’s how we started distilling the product,” the assistant recounted.
The distillery started operating in 2020. However, the COVID-19 pandemic caught them in the process.?They took advantage of that time to construct their still, and by late 2021, they returned with renewed vigor, expanding their facilities to include an outdoor bar alongside the distillery and gift shop. Visitors can now witness the distillation process from the bar while enjoying private events.?Additionally, they offer rum tastings and even have a food truck on-site.
“It was a pretty challenging at the start. So, we dedicated ourselves to distilling and aging rum, which prepared us for the reopening. On December 4, 2021, we reopened and introduced a bar along with the food truck named ‘La Tabla del Chef.’ Before that, we only had the distilling area and the gift shop.?We’re open to the public from Thursday to Saturday; we do tours and tastings,” shared Rodríguez.
A meticulous process
Crab Island distills approximately 50 to 60 gallons daily. Due to the limited number of fermentation tanks—just two—they conduct distillation on two specific days, namely Monday and Wednesday. Alfonso Vázquez and Roberto Bermúdez, both employees, oversee the distillation process, and they are both very aware of its significance.
“We start the process in these tanks that we call fermenters. We add molasses, because our rum is molasses-based, with yeast and other key ingredients. After a six-day resting period in these tanks, the mixture moves to the still for distillation. This stage involves the evaporation of alcohol molecules, which is what we want to capture. Then, it passes through the flute, allowing us to collect the pure alcohol. There, we have a product comprising approximately 85 to 88% alcohol by volume,” elucidated Vázquez.
After the alcohol is collected, it is transferred to another rectification tank, where—through the activated carbon filter—the alcohol by volume percentage is reduced.?“Once we’ve reached our target alcohol concentration, we divide the batch, reserving a portion for barrel aging and another for crafting our distinctive orange and coffee infusions,” said the distiller about the defining flavors of their product.
In fact, he underscored the importance of allowing the coffee infusion to mature for eight to nine months, while the orange infusion requires 10 to 11 months in the tank. “For the infusions, we use orange peels and coffee grounds. We pack baskets with the orange peel (three baskets per tank) and let them steep for the necessary duration. Every month or so, we stir them to release the essences from the baskets, but without letting the larger particles escape,” detailed the process overseer, noting that the orange flavor is the most commonly produced and favored among customers.
Setting high goals
One of Crab Island’s goals is to expand its brand recognition to new heights. They plan on retailing the product at the Luis Mu?oz Marín International Airport and to venture into exporting the rum to other countries.
“We’re making waves in the business world, thank God. All the businesses in Vieques support Crab Island. We’re also affiliated with Ballester, so we’re available at Walmart, Econo, Amigo, and some liquor stores. We’re looking for distributors to take it abroad. The next step would be to get to the airport and beyond. We want to impact all of Puerto Rico and for the whole world to recognize the product, for it to have international reach and for Vieques to continue shining,” said, Rodríguez.
“History tells us that pirates sailed to the Caribbean for rum, and that tradition should continue. Many islands, such as Santa Cruz, have their own rum, and Puerto Rico and Vieques should be no exception,” she concluded.
The Last Drop Distillers Announces 2024 Collection
Elias Aoude – 04/25/2024 – OneMoreDram.com
The Last Drop Distillers has announced its 2024 Collection of spirits featuring Release No. 34, Release No. 35, and Release No. 36.
Release No. 34:
The Last Drop 40 Year Old Single Malt Scotch Whisky from the Auchentoshan Distillery
Limited to 74 bottles at 44.8% ABV (89.6 proof)
$5,300 for a 700 mL bottle + 50 mL miniature
Auchentoshan Distillery is renowned for its unique production processes, honed over two centuries of whisky making. It is the only extant distillery in Scotland to distill its spirit three times, producing a liquid that is delicate, refined and luxurious. With Release No. 34, The Last Drop celebrates the craft and creativity of this Lowland distillery, famed for the soft mellowness of its single malts.
Tasting Notes by Colin Scott, Master Blender, The Last Drop Distillers:
Appearance: A light, delicate straw gold, with glints of yellow diamonds.
Nose: Light and delicate but with the richness of fruitcake and stewed apples, complemented with the ripe sweetness of raisins and black cherries. Notes of toffee and hazelnuts with hints of liquorice entice, with sweet spices and oak.
Palate: The richness of black cherries remains: cut grass, enhanced with the sweetness of raisins and caramel, intermingles with spices, vanilla, and a hint of oak, developing into a sweet floral, liquorice and spicy oak aftertaste.
Conclusions: A soft, deep finish to linger over, this is a whisky full of surprise and delight.
Release No. 35:
The Last Drop 22 Year Old ‘Infinitum Rum Blend’
Limited to 136 bottles at 53.1% ABV (106.2 proof)
$3,100 for a 700 mL bottle + 50 mL miniature
An ‘infinity rum’ presents the fruits of an experimental process of combining different aged rums from a wide array of distilleries. This example – bottled by The Last Drop – is a tribute to the dedicated process behind its creation. Release No. 35 is an extraordinary blend of rums from around the world; with origins in Guyana, Jamaica, Trinidad, Barbados, Venezuela, Guadeloupe, Brazil and Fiji – it is a liquid of international origin.
Sweetness and spice are plentiful in this rare liquid, born from hundreds of duty-suspended samples sealed in an oak rum cask and left to slumber in a Liverpool warehouse for 22 years and vatted during the first year of the new millennium.
Tasting notes by Ian Burrell, ‘The Rum Ambassador’:
Appearance: Light amber in colour, the rich beading gives a hint of the treasure that awaits.
Nose: This rum oozes sweetness, with honeycomb, nutmeg, and allspice. The initial aromas are followed by citrus marmalade and stewed fruit. The aromas open to a cedarwood scent, speaking of its long years in oak barrels.
Palate: The natural sweetness leads to an array of tropical spices. Allspice, nutmeg, and gingerbread layer the tongue with a tingling of cloves. The mouth feel is of light oak and new leather.
Conclusions: The rum has a dry finish, and – hidden in this unique and multi-faceted blend – you will find a whisper of the rums of Guyana, Jamaica, and Trinidad, among many others. A dry finish of white pepper, hot spices, light oak, leather, tannins, citrus peel combine in harmony culminating in a delightful rum that can be sipped all year round.
Release No. 36:
The Last Drop 55 Year Old Single Malt Scotch Whisky from the Tomintoul Distillery
Limited to 582 bottles at 41.7% ABV (83.4 proof)
$8,300 for a 700 mL bottle + 50 mL miniature
The Last Drop’s oldest single malt release to date was born in the ‘Swinging Sixties’ when Scotch whisky was booming and new distillation technology was changing the game. The spirit of innovation was ubiquitous when these casks were put down to rest in Speyside – a time when the Tomintoul Distillery itself was less than 5 years old.
After aging for more than 53 years in six oak casks, and the angel’s claimed their share, the remaining liquid was married into an Amoroso butt for a further 20 months resulting in a liquid of richness and complexity.
Tasting notes by Colin Scott:
Appearance: A deep golden amber in colour, speaking of long years in rich sherry casks.
Nose: The colour heralds rich and ripe notes of dark fruits, sweet raisins, and fruitcake. This is followed by a gentle floral fragrance, grassy nettles, and notes of toffee, enhanced with the nuttiness of hazelnuts, spices, and an oaky sweetness.
Palate: The taste is an explosion of ripe fruits, and richly caramelised apples. A dance of spices and herbs tingles on the tongue, with buttery notes of sticky toffee pudding coming to the fore.
Conclusions: The finish is long and lingering, as befits a whisky of such great age. Sweet oak and surprising floral notes alongside the complexities of fresh, ripe, and dried fruits aplenty.
The Last Drop 2024 Collection will be available in limited quantities in the United States beginning in May 2024.
Source: The Last Drop Distillers.
Wise Monkey Bags Gold at the London Spirits Competition
HBI Staff ?– 04/29/2024 – ?Hyderabad
Wise Monkey’s Indian Spiced Rum is taking the world by storm, one award at a time. Claiming the coveted title of being the first-ever Indian Rum to have won the gold at the London Spirits Competition, the brand has marked a significant victory for the Indian spirits industry.
The Indian Spiced Rum embodies the rich and celebrated flavors of India and combines it with the country’s famed love for Rum. Recognizing the brilliance behind the craftsmanship, the London Spirits Competition awarded 90 pts to Wise Monkey Indian Spiced Rum.
Rigorous rounds of judging and tasting by expert panels has made the global competition a benchmark for excellence over the years. They assess brands and cherry-pick the ones which present superior quality, taste, and value to consumers. Securing a clean sweep in all these criteria, the rum drew interest by establishing its premium-level production.
Speaking of the win, Director of Nirvana Works, Mr. Jagdeep Singh said, “It’s one thing to receive recognitions, but being able to bring attention to the spirits crafting culture of your country is an honor on an entirely different tangent. We’re glad that we could do this by being the first-ever Indian Rum to win the gold at the competition.”
Along with this award, the brand now flaunts 5 awards up its sleeves including the Rum Masters, Bartenders Brand Awards, Asia International Spirits Awards, and the Cathay Hong Kong International Wine & Spirits Competition.
8 new homegrown rums that you must try
Staff – 04/27/2024 – FE Lifestyle
Amidst this trend, rums made with pure sugarcane juice are gaining popularity for their distinctively crisp and flavourful profiles, drawing attention from connoisseurs worldwide.
For rum enthusiasts constantly seeking to add new and unique flavours to their collection, here are five exceptional Indian rum brands that are redefining the status quo of homegrown rums across borders. From the majestic Himalayas to the palm-fringed beaches of the Konkan coast, a new generation of craft distilleries is producing rums that capture the essence of India’s rich cultural tapestry, beckoning enthusiasts to explore the finer nuances of this dynamic spirit.
Amidst this trend, rums made with pure sugarcane juice are gaining popularity for their distinctively crisp and flavourful profiles, drawing attention from connoisseurs worldwide.
Ah, Old Monk—the timeless classic! Since its launch in 1954, this beloved dark rum has been a staple in every household, especially during the chilly winter months. Crafted in Ghaziabad, Old Monk holds a special place in the hearts of rum enthusiasts across the nation. With an alcohol content of 42.8%, this premium rum is meticulously produced using traditional methods and aged in oak barrels for a minimum of seven years. Its velvety texture and rich flavor profile, boasting hints of caramel, chocolate, and a touch of vanilla, create a delightful symphony on the palate. It’s no wonder that no winter gathering in Delhi is complete without the comforting presence of Old Monk!
Maka Zai, hailed as India’s inaugural premium artisanal rum, has earned its esteemed status among rum aficionados nationwide. Its robust flavors are showcased in two distinct variants: the Bartender’s Edition, a white rum boasting light floral notes and herbaceous undertones of sugarcane, and the Tribute Edition, a golden rum with a luscious creamy texture and hints of praline, fig, and honey. Both variants are undoubtedly a palate-pleasing experience not to be missed!
Introducing Rock Paper Rum, a meticulously crafted triple distilled rum that exudes elegantly spiced nuances. Handcrafted in small batches, this rum epitomizes exceptional quality and tantalizing taste. Derived from sugarcane, it packs a punchy flavor profile that leaves a lasting impression. Available in two enticing variants—the Indian Spiced and Coastal White—each promises a unique and memorable tasting journey. Be sure to savor both for a complete rum experience!
Distilled by Fullarton Distillers, Segredo Aldeia emerges as a must-try rum brand hailing from the vibrant shores of Goa. Offering two enticing variants—a white rum and a cafe rum—this brand ensures you stay warm and cozy throughout the season. The White rum boasts a subtle yellow hue, delivering a creamy finish with notes of peaches, caramel, and vanilla. Meanwhile, the Cafe Rum, with its amber hue, entices with a deep aroma of toffee, coffee, and vanilla, complemented by hints of sweet wood and dark chocolate. Don’t miss the chance to indulge in the rich flavors of Segredo Aldeia this season!
A name derived from the Sanskrit term for ‘liquid gold’, Camikara is India’s first pure cane juice rum from the house of Piccadily Distilleries that made history by clinching a gold medal at IWSC 2023, solidifying its position as India’s premier rum. Recently, adding another feather to its cap, Camikara 12YO and 8YO variants secured gold medals, and the Camikara 3YO variant proudly earned a silver medal, at The Rum & Cacha?a Masters 2024 competition.
Introducing ‘Pipa,’ a rum that pays homage to Goa’s 450-year fusion of Portuguese and local influences, seamlessly intertwining regional flavors with Portuguese heritage. Crafted in the heart of Goa, it undergoes distillation from jaggery spirit and matures in Portuguese Ruby Port wine barrels, enhanced with a delicate blend of Black Pepper, Cinnamon, and Clove. Through meticulous spice infusion, ‘Pipa’ yields a nuanced and indulgent spirit, boasting a velvety palate reminiscent of dark chocolate with hints of sea salt, complemented by notes of roasted hazelnuts and figs. Whether savored neat or as the cornerstone of cocktails, ‘Pipa’ emerges as a prized addition to any collection, encapsulating the cultural richness of Goa.
Pernod Ricard sales lower than expected
Ron Emler – 04/25/2024 – The Drinks Business
Pernod Ricard’s third quarter sales figures were lower than expected as its largest and third biggest markets in U.S. and China remained affected by global economic conditions with consumers resisting price rises and trading down the quality scale.
In the first three months of 2024 the group’s organic net sales were stable compared with the same period in 2023 but fell 2% in overall terms.
That takes the French group’s sales performance in the first nine months of its financial year to 6% below that of a year ago or 2% lower in organic terms.
Between January and the end of March sales volume grew by 1% but following four consecutive quarters of decline they are 4% lower for the nine months since last June compared with the previous comparable period.
Sales in the quarter were €2.35 billion, flat on a like-for-like basis versus analysts’ expectations of 2.9% growth.
Shares fall
The shares fell by 2.5% to €141.5 in Paris and have now lost 35% of their value in the past 12 months.
Nevertheless, Pernod Ricard described the sales figures “robust” and said they “illustrate the strength of our diversified portfolio of premium international spirits and our broad-based geographic footprint covering mature and emerging markets.”
With the “increased momentum that we’re experiencing in the rest of the world, with the exclusion of China and the US, we see that as pretty broad-based,” chairman and chief executive Alexandre Ricard said in an interview with Bloomberg.
Despite cutting its forecast for this year in February, Pernod has left unchanged its guidance of medium-term sales growth towards the top of its 4% to 7% range.
It predicts it organic profit from recurring operations will grow by 1% in the full year ending June 30, with an organic margin expansion.
Soft
It was hit by a “soft” Lunar New Year in China, when celebrations normally boost spirits sales.
In the quarter total sales in China fell by 12% (9% organically) where the economy is faltering on a housing investment crisis.
However, Pernod Ricard noted that Chinese consumers were spending strongly overseas, notably in Japan where the yen is weak, and that travel retail is fast picking up now that tourism is virtually back to pre-Covid levels.
In the United States, wholesalers and retailers are carefully restricting their stocks of premium drinks. In the quarter total sales were 11% lower or 8% down in organic terms.
India, however, was a bright spot as strong consumer demand boosted organic sales by 8% or 5% in total with good performances from Jameson’s Irish whiskey, Absolut vodka and Ther Glenlivet.
In the UK the sales figures were “soft” with demand for the group’s wines particularly weak.
Pernod-Ricard (PERP.PA): Weak results everywhere BUT lack of FY24E downgrades may limit share price downside.
Staff – 04/26/2024 – CITI
CITI'S TAKE
Pernod results are weak with organic growth misses in all divisions and reported sales -4.5% below consensus. Headline group OSG at -0.4% is well-below consensus at +2.9%. Looking forward, management is re-iterating its medium-term growth algorithm, while what it expects will be “dynamic” Q4 sales means FY24 OSG guidance of “broadly stable” is unchanged (cons -0.9%). At EBIT, Pernod has slightly revised-down its guidance and now expects organic growth to be c.+1%, (consensus +0.4%) vs LSD's previously. Overall, these are weak results, and the group will have to deliver c.+7% OSG in Q4 (consensus +2%) to meet its FY OSG guidance, but with little change to consensus EBIT/earnings expectations likely, downside may be limited. We expect the shares to drift lower, while the absence of catalysts means there is little reason to chase the stock for now. However, the attractive medium-term business model means we maintain our Buy rating.
US and China inline. Russia and India weaker ?— Q3 results have come in below expectations with misses across the board. Headline OSG at -0.5% is below consensus at +2.9% (Citi +2.2%) with volumes up +1%. Headline sales of €2,347m are -4.5% below consensus at €2,458m. Divisionally, Americas OSG was -7% vs Citi -4%, with the US -11% in-line suggesting LatAm growth was slightly lower than we estimated. Asia/ROW OSG was +8% (Citi +10%) with China -12% in-line but India at +8% a little softer. Europe OSG at -6% compares to our -4% with Russia more of a drag than we estimated. Excluding Russia underlying OSG of +4% is consistent with our estimates.
Implications — We expect the shares to drift lower, while the absence of catalysts means there is little reason to chase the stock for now.
Asia/ROW – RoW Q3 organic sales grew +8.0% (Citi +10.0%). In China, Q3 organic sales fell -12% (Citi -12%) with soft consumer demand and a weak CNY. India saw OSG for Q3 up +8% (Citi +14%) with premiumisation trends intact. Duty Free organic sales jumped +38% in Q3 on a gradual recovery in Chinese travel with some favourable phasing.
Europe – Europe Q3 organic sales fell -5.7% (Citi -2.4%). Excluding Russia, Europe was up +4% with Western European markets posting a resilient Q3. In Spain, momentum was solid on favourable comps (Citi +3%), while France was also in growth for Q3 (Citi -1%) but down for the 9M. Elsewhere, there was strong growth in Poland and Germany, while the UK was also solid.
Americas – Americas Q3 organic sales fell -7.2% (Citi -4.2%). US sales were down -11% in Q3 (Citi -12%) and down -8% for the 9M. 9M depletions are running down c.-7% with the underlying sell-out at c.-3% as the US market continues to be a drag on group performance. Elsewhere, Brazil rebounded strongly on soft comps while Mexico was weaker due to weaker tourism impacting the on-trade.
Valuation
Our €190 target price is set using discounted cash flow analysis. We use a three-stage DCF and assume a 2.7% risk-free rate, 4.5% equity risk premium and a WACC of 6.4%. We assume an improving ROIC trajectory over the next 20 years, driven by an improvement in margins over the explicit period as the group’s premium portfolio and greater operational leverage of its well-invested businesses comes through. We fade ROIC back to the cost of capital over the last 20 years in our model.
Risks
We see the following risks to our investment thesis and target price:
The US is Pernod’s largest market. Sales growth in the US has improved in the past two years, but the market remains extremely competitive, particularly for vodka. It is possible that demand could be stronger, or weaker, than we expect. A large portion of Pernod’s growth in the US comes from one brand (Jameson).
China: China was the main profit growth driver for the group until FY13. The government crackdown on conspicuous consumption had a material impact on sales and profit. The situation has improved considerably over the last 18 months, but risk of consumer rotations away from cognac remain.
FX: Pernod has transactional as well as translational exposure, as it is exporting whisky from Scotland, vodka from Sweden, and Cognac from France. This means a rise or fall in the pound, krona, or euro has a particularly marked impact on Pernod’s earnings.
Excise tax risk: If taxes on spirits go up in any of its important markets, Pernod is likely to suffer.
Regulations: It is possible that harsher anti-alcohol laws could impact Pernod’s businesses.
If the impact from these factors proves to be greater than we anticipate, the stock will likely have difficulty achieving our target price. If the impact proves to be less than we anticipate, the stock could materially outperform our target price.
Until the next newsletter!
Federico Hernández - The Rum Lab
Sales And Marketing Specialist at Appen
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