TheRumLab Industry Newsletter Week #21 of 2024
The Rum Lab
TheRumLab - Our main focus is Rum Education. We do so through our digital magazine, events, infographics, and more.
ANNA OSTROVSKYJ Quintana Rum,? CEO & FounderSelf Entrepreneur | Oenologist ?
TRL: Who is Anna Ostrovskyj? I am Italian, with a part of Ukrainian blood from my grandfather, thus I am a “blend”. I have been passionate about wine and spirits from a very young age thanks to my family, and I trained in the oenology of wine and spirits through study and active practice. I formed my own consulting company, 4 years ago, Coeur De Chauffe, to assist distilleries through the path of spirit creation (choice of the raw material, fermentation, distillation, maturation, eventual blending), preferring, amongst them, the ones working with pure sugarcane juice.? At the present moment, I assist some clients in the French Caribbeans and one in Italy, all producing pure sugarcane juice rum; in addition, I continue my activity as a trainer for Whisky Club Italia and F.I.S.A.R. My first objective is to transmit my passion through the products I help to produce, the profession of training and writing, and my other great love: I manage the blog coeurdechauffe.com where I speak in three languages about rum, spirits, and wine.? The different aspects of my activity have in common the creativity and the need to explore. I am someone who loves to learn constantly and to invest time and resources in my personal development and evolution, besides this, I am very happy to share my knowledge with open-minded people: I believe that knowledge finds its true nature only when shared. I am truly passionate about fermentations and always try to innovate in this particular segment of my job which I believe is the real core of any alcohol making process.
TRL: What does the rum mean to you? What made you fall in love with rum and when did it happen?? To me, rum is joy and sharing, “partage” in French, and this is the lesson I learned on my very first trip to the Caribbean, in Cuba, in the early 2000s: people were happy and festive without having great things, a “trago de ron” was sufficient to start a friendly discussion, a little party or getting you to know other people or sharing your experiences. Rum is a happy spirit for people who are happy and grateful inside, and I try to bring this with me every day.
TRL: Three essential characteristics that define the rum according to your perspective. A terroir’s (natural and human) reflection, an eclectic and joyful spirit.
TRL: Benefits that the rum industry has given you.? I have the luck to live and learn in a beautiful place of the world like Guadeloupe is, I can travel and get to know other people and women who are an inspiration to me, I can take all this richness I earned and put it in my everyday job.
TRL: What's another thing you are passionate about, in addition to rum? Why?? Writing. I have written since I was a little girl, as I am shy and usually, I write better than I speak. I love to write about rum, but I also write about other things not strictly related to my job.
TRL: What is your favorite place for drinking rum?? Any place but with friends
TRL: Favorite drink + Recipe? A very dry Hemingway Special, with a part of an old 1960s Bacardi, a part of Agricole, and a drop of Jamaican aged rum, a little less Maraschino than the usual 15ml, local grapefruit and lime juice. Favorite recipe: this comes directly from my birthplace, in the north of Italy, and is Passatelli, a special, humble pasta made from bread crumbs, eggs, and parmesan, and then Parmigiana di melanzane. I love cooking.
TRL: Why is it important to educate the rum consumer?? An educated Rum consumer will educate others, and, thanks to the social value of rum, will inspire others to consume the happiest of the spirits with joy and moderation, but also to deepen their knowledge and share it.
TRL: Any tips to train the palate and taste a good premium rum?? Go to the events and salons and speak to producers to discover and taste as many products as you can to form your tasting baseline. Rum trips are the second important step: visiting distilleries and exploring and tasting directly in the birthplace of spirits is crucial. Searching for a serious training course to give you the correct dictionary and methodology is what completes passion and personal abilities. WSET Spirits Courses are very good.
TRL: What are your next goals in the rum industry?? Explore as many styles and production and maturation ways as possible.
TRL: Plans you have when you leave the rum industry.? Continue to learn (I will have more time!). Continue to write and educate consumers and be passionate.
TRL: How can people learn more about you? Website? Social media page?? I am definitely an underdog and not so “social” so maybe my website where I write is a good way to learn more about me. https://coeurdechauffe.com/
RUMLAB’S FIRST FESTIVAL CASK PRESALE LAUNCHES TODAY
Staff - 5/22/24 - TheRumLab
At the 2023?NY Rum Festival?& Conference in New York, the RumLab collaborated with?Holmes Cay Rum, curator and bottler of outstanding rums from around the world, to open up its single cask selection process with a blind tasting of a series of single cask rum expressions to a 14-member jury. This group helped choose the first RumLab Festival Cask pick.
The expression will be released to the US market for purchase at the beginning of June, and will premiere at the 2024 New York Rumfest.
The expression will be released to the US market for purchase at the beginning of June, and will premiere at the 2024 New York Rumfest.
The jury was a group of spirits industry connoisseurs and knowledgeable collectors. These participants blind tasted and seriously debated four diverse expressions provided by E & A Scheer from around the Caribbean and the world. All of the expressions were strong contenders, and the group made excellent arguments for their favorites. This open process ultimately resulted in the New York Rum Festival’s first cask selection.??
The jury was made up of a group of spirits industry connoisseurs and knowledgeable collectors. These participants blind tasted and seriously debated four diverse expressions provided by E & A Scheer from around the Caribbean and the world. All of the expressions were strong contenders, and the group made excellent arguments for their favorites. This open process ultimately resulted in the New York Rum Festival’s first cask selection.??
Said RumFest founder, Federico Hernandez, “The New York RumFest has been an eagerly anticipated event for rum fans for 7 years, and we are proud to bring a festival cask pick chosen by the rum connoisseurs who attend RumFest annually.? We are very pleased to collaborate with?Holmes Cay, known for bringing ultra premium rums to the US market, for our first cask selection.”
ABOUT THE FESTIVAL CASK
The Holmes Cay Jamaica WPL 2012 edition is a single cask from an award-winning distillery in Lluidas Vale, Jamaica. The molasses, 100% pot still rum was aged in ex-bourbon casks in the tropics for 8 years, with a further 3 years maturation in Europe in ex-bourbon casks. Its profile is a classic Jamaican mix of ripe banana, vanilla, spice and oak.
Fermentation, distillation and aging alone create the Jamaica WPL 2012 edition’s complex flavors. No sugar, no color and no other flavors were added in the making of this rum.
The Jamaica WPL 2012 has been bottled at “Navy” strength of 57.14% alcohol by volume.?
Only one festival cask of this 11-year old rum is being released.?
TASTING NOTES
Baking spice, ripe banana and vanilla on the nose. More tropical fruit, caramel, spice and creamy vanilla on the tongue. A lasting finish of leather and toffee.
Bottles can be reserved now at?curiada.com , the online spirits marketplace that ships to? ~75% of U.S. households.?
On-trade drinks sales rise 13%
Nicola Carruthers - 5/21/24 - The Spirits Business
Drink sales in Great Britain’s on-trade returned to growth in May after five weeks of declines, with spirits rising by 5%.
In the seven days to Saturday 11 May, on-trade drinks sales were up by 13% compared with the same week in 2023, data from CGA by NIQ’s Daily Drinks Tracker showed.
It marked a return to growth following?five consecutive weeks of declines.
Drink sales rose by 17% on Bank Holiday Monday (6 May). The same bank holiday had fallen a week earlier in 2023. Sales peaked at 23% on Thursday 9 May and warm weather helped to boost sales by 21% on the following day (10 May) and by 5% on Saturday 11 May.
After plummeting by double digits the previous week, spirits reported growth of 5% between 5 and 11 May. Other categories performed even better with cider soaring by a third and beer rising by 14%. Wine and soft drinks both posted gains of 11%.
“Bank holidays always make year-on-year comparisons more difficult but after a soggy spring, the warm spell and double-digit growth have been a huge relief for Britain’s pubs and suppliers,” said Jonathan Jones, CGA by NIQ’s managing director, UK and Ireland.
“The sunny weather means it’s been particularly good news for longer and lighter serves, and pubs and bars with outdoor gardens and terraces, many of which have been empty for months.
“Businesses will now be hoping the high temperatures can continue into the second May Bank Holiday and encourage more consumers to loosen their spending.”
India: Can single malts from India compete with Scotch??
By Rupert Hohwieler
May 20, 2024?
As alcohol volume sales in India ramp up, it will be sooner rather than later that its single malts are competing well with Scotch whisky, Sanjeev Banga, president – international business at Radico Khaitan, has forecast.?
In the same sense that New World wines are now competing with traditional regions, and are considered premium like their traditional counterparts, Sanjeev Banga, president – international business at Radico Khaitan, doesn’t see why Indian single malts won’t transform in the same way.?
Speaking to The Spirits Business, he said: “No offence to the Scotch whisky industry, but the consumer today is looking at innovation, new products, they’re looking at new experiences, which new world single malts, like those from India, are giving it to them.”?
As one of the largest alcohol beverage companies in India, Radico Khaitan produces 310 million litres of alcohol a year. It has brands such as Indian single malt Rampur under its banner, produced at the foothills of the Himalayas. Banga said although “everyone is talking about Indian single malts right now” and the category is the “new kid on the block”, it is still very much in the early stages of its growth – and this extends to Indian-made spirits in general.?
The years from 2022 to 2027 have been pinpointed as the period when spirits will see rapid growth (according to IWSR Drinks Market Analysis), but Banga contends that before measuring figures, the category hasn’t “tested the waters completely”. “In terms of our Rampur Indian Single Malt, we are in a very strange situation – for lack of a better word – because the demand outstrips the supply,” Banga explained.?
“Most of Rampur still remains on allocation, and a lot of the malt, which has been resting and maturing in the casks, is now getting ready for bottling this year onwards. The true test of how the category is growing will come only after we start supplying what the market demands.”?
So what is the potential? He said: “We’ve just touched the tip of the iceberg, as they say, and there’s a long way to go before we say ‘yes, now we’ve reached a certain stability in the volumes for our single malt in a particular market’.”?
Banga also said the company was yet to tap into the “unlimited” potential that Rampur has in India itself. “Just to put it in perspective, we have seven Rampur expressions available internationally, and only one expression is available in the domestic market – our footprint within India is minuscule at the moment.”
Leaning into luxury?
Outside of Rampur and single malts, luxury spirits made in India are finding big appeal internationally – this goes for vodka, gin, rum, almost all the big categories. Banga thinks this stems from “a mysticism about the country”. The focus of Radico’s strategy, he continued, is on the premium segment and premium offerings, which offer the company high double-digit growth. The company has acted as something of a market disruptor with entries into these categories.?
For starters, its recent Kohinoor Indian Dark Rum release looked to address the growing demand for rum (especially in the UK), along with the premiumisation trend. Banga said: “Rum distillation or sugarcane molasses distillation actually started in India, then it moved to the Caribbean market, but you never had a premium gin or rum offering from India and it was about time we addressed this segment and filled this gap.”?
Then there’s the company’s Jaisalmer craft gin, which looked to overlap with the gin boom in Europe over the past eight years. In addition, the company is planning to launch the fifth and sixth expressions in its Jugalbandi series this year – a limited edition range of eight Indian single malt whiskies, which take after an ancient Indian musical art form. “The consumers are loving the premium and luxury offerings coming from the Radico portfolio. They are very happy about it, not only in India but globally as well,” he noted.
Travel boost?
In terms of a global push, Banga highlighted that travel retail has become a significant channel for giving luxury spirits from India a platform on the international stage, though this is still a new development. He believes the void created by the decline in Chinese citizens travelling has been filled up by Indian travellers, who are “spending far more”.?
“Air traffic is growing significantly in India and more Indians are travelling than ever these days, and they would love to take [Indian spirits] for their own consumption, as well as gifts to their friends and relatives overseas,” he said.?
Could Indian single malts and luxury spirits be the next big thing? The future is bright, visibility is clearly increasing, and growth is looking healthy in areas such as Europe, but Banga is coy on when we might see its full potential.
“There’s still a long way to go, but the world is recognising and accepting that India is producing world-class spirits,” he assured. “And it’s about time they experiment and experience that uniqueness that India has to offer to the world.”
Women Leading Rum and the Asociación Iberoamericana de Ronmeliers join forces for Women’s Education and Development.
Women Leading Rum’s (WLR) commitment to women’s education and professional development has taken a step forward with the formation of a strategic alliance with the Asociación Iberoamericana de Ronmeliers (AIR). This agreement marks a milestone in the fulfillment of the pillars of the United Nations 2030 Agenda, solidifying WLR and AIR’s commitment to the growth and academic training of its members.
As part of this alliance, WLR members will benefit from special prices, facilitating their access to specialized training programs in the world of rum. In addition, the alliance materializes with a significant educational benefit: the Asociación Iberoamericana de Ronmeliers and the Universidad Central de Venezuela (UCV) will offer two annual scholarships. These scholarships are designed to support WLR members who have distinguished themselves with awards at the Ultimate Awards, specifically in the WLR category, thus enriching their professional and academic development.
WLR’s vision has always been to empower women in the rum industry, whether they are buyers, bartenders, distributors, Master Blenders or brand managers. The essence of this alliance lies in strengthening connections, creating larger initiatives to ensure the personal and professional growth of women in the industry and giving them the opportunity to participate in the AIR as Ronmelier Iberoamericano.
With these efforts, WLR reinforces its growth objective, offering more accessible university training opportunities, sharing the rum culture, promoting equality, diversity, and inclusion. It also fosters female leadership through the development of a strong community and projects that encourage the active participation and decision-making of women in their respective companies.
The partnership between WLR and the Asociación Iberoamericana de Ronmeliers stands out for its educational approach, the establishment of a professional mentoring model and the creation of a premium network where women can exchange knowledge, experiences and career opportunities. It is hoped that this collaboration will continue to build women’s confidence so that they can develop their skills, receive the recognition they deserve and ultimately influence the future direction of the rum industry.
This partnership underscores WLR’s mission to recognize and connect women within the rum industry and their active contribution to building a more inclusive and sustainable future in the sector, aligning with the principles of the United Nations 2030 Agenda.
The WLR community can expect a significant impact and a strengthening of its global presence thanks to this strategic alliance, which promises to open new doors and create unprecedented pathways for women leaders in the world of rum.
Coconut Cartel Launches its First White Rum: Coconut Cartel Blanco
Staff – 05/20/2024 – Focus Daily News
MIAMI, FL ?– Embodying the spirit of Latin America and crafted with passion and innovation, Coconut Cartel proudly announces the launch of their newest creation: Coconut Cartel Blanco. Capturing the essence of the Dominican Republic’s finest sugarcane and locally harvested coconuts, Coconut Cartel stands apart as the only brand to use fresh coconut water in the process of proofing rum, resulting in a distinctive and refreshing flavor profile. This extraordinary blend, meticulously curated by sibling-duo Dani and Mike Zig, is poised to disrupt the white rum category with authenticity and innovation.
Coconut Cartel’s dedication to excellence and creativity shines through in every sip of this remarkable white rum blend made of a base of 100 percent estate grown sugarcane juice, with no added sugar or flavoring. Rooted in the rich tradition of Latin rum-making, Coconut Cartel’s craftsmen carefully blend unaged pot still rum sourced from the distillery’s own sugarcane farms in the Dominican Republic, with one-year-old column still rum aged in American White oak ex-bourbon barrels. Far from a flavored coconut rum, Coconut Cartel Blanco’s blend is skillfully cut to proof with fresh coconut water sourced from locally harvested Brazilian Green Dwarf coconuts, achieving a rich and interesting balance of flavors and a smooth, approachable profile.
“I’m captivated by the diverse and intricate nature of artisanal pot still white rums, particularly cane spirits like Mexican Charanda, Brazilian Cachaca and Rhum Agricole. This fascination inspired us to craft our own white rum blend, aimed at acquainting enthusiasts and curious consumers with the array of funky flavor profiles in a delightful and accessible manner,” reveals Dani Zig, Co-Founder of Coconut Cartel. “At the heart of our bespoke creation lies our unique coconut water proofing method, a vital component to ensuring our blend’s unrivaled smoothness and approachability. Leveraging coconut water’s rich mineral and salt content, we mitigate any harsh bitterness or “burn” typical of high proof rums, while enhancing the vibrant flavor nuances exclusive to these high-ester spirits. The outcome? A white rum that retains its bold character while delivering an exceptionally smooth and gratifying drinking experience.”
Coconut Cartel Blanco boasts complex aromas of fresh cane, white pepper, and tropical fruits like unripe banana and dried pineapple while delivering a distinct minerality on the palate that leads to a clean and crisp finish. With a proof of 92 (46 percent ABV), Coconut Cartel Blanco is perfect as the foundation for tropical cocktails, such as the classic Daiquiri comprised of rum, lime and sugar, the ultimate white rum serve. Rum drinking professionals will enjoy Coconut Cartel Blanco neat as well. Recipes can be found on the website.
In 2018, Coconut Cartel introduced its first spirit, Coconut Cartel Special A?ejo, a premium aged Guatemalan rum cut to proof with fresh coconut water. Inspired by the growing popularity of coconut water and their cultural ties to rum-producing regions, Dani and Mike envisioned reshaping rum’s perception, akin to the transformation witnessed in the tequila industry. The name “Coconut Cartel” reflects their bold approach, stemming from their early days ‘smuggling’ coconuts from the coastline of El Salvador to the hottest hotels and restaurants in Miami Beach. Guided by a commitment to provenance and an unconventional approach to blending and branding, Coconut Cartel embodies the Zigs’ relentless hustle and determination to push boundaries.
At $28.99 per bottle, consumers aged 21+ may purchase Coconut Cartel Blanco online or at select retailers across the United States. For more information on Coconut Cartel and their latest white rum blend, please visit: coconutcartel.com
Boxing great partners with The Pugilist rum
Sarah Neish – 05/17/2024 – The Drink Business
Ahead of the boxing world’s biggest contest of the decade on Saturday night, cruiserweight champion and Sky Sports pundit Johnny Nelson has teamed up with The Pugilist rum range.
Former cruiserweight world champion and legendary commentator Johnny Nelson has teamed up with Warwickshire Gin Company to become an ambassador for its rum range, The Pugilist.
He’s a good man to have in your corner.
The longest reigning cruiserweight world champion of all time, Nelson had 59 professional fight between 1986 to 2005, with 29 knock-outs to his name, according to BoxRec. Earlier this year he received an MBE in the first new year’s honours to be awarded by King Charles III for services to boxing and young people, and he continues to work with the prison service helping inmates to learn life management skills.
Nelson chose the Leamington-based distillery to team up with partly due to its connection with local boxing Randolph Turpin – AKA ‘The Leamington Licker’ – after which The Pugilist rum range was named. Turpin went down in boxing history after beating Sugar Ray Robinson in their 1951 world title bout.
“I love boxing, and I love rum, so Pugilist Blended Rum and its history with Randolph Turpin is the perfect collaboration for me,” said Nelson.
“I didn’t drink as a professional, and if I’m honest didn’t really like the taste of alcohol, but you’ll often find me drinking [Pugilist rum] neat, or mixed with ginger ale.”
There are currently three rums in the range, priced at ￡38 per 70cl bottle: Spice Blended Rum; The Pugilist – Sting Like a Bee – Honey Rum; Pugilist Ghost Edition White Rum. Following the launch of the original Spice Blended Rum in September 2021, the range expanded in 2023.
Made using “the finest Guyanan Rum” in a nod to Turpin’s heritage, The Pugilist rum expressions are complemented by ingredients including nutmeg, cinnamon, all spice, orange peel, honey and vanilla.
Warwickshire Gin Company founder Dave Blick said he hopes Nelson’s endorsement will “help us in our plans to grow the brand in getting it into sporting and boxing venues, and to carry on sharing the wider story of Warwickshire’s Randolph Turpin, extending his legacy beyond the county borders.”
Nelson added that he wanted to help The Pugilist “bring to life the connection to boxing through appearances at gyms in the Warwickshire community, through to promotional campaigns. I’m proud to be an ambassador for the brand.”
Koloa Rum and Raiders Make a Summer Cocktail For the Ninth Island
Maria Dibut Galera – 05/17/2024 – 8 News Now
Las Vegas(KLAS)-Koloa Rum Company has unveiled an exclusive “Rum Rusher Cocktail” to commemorate their partnership with the Raiders. Tony Abou-Ganim, the modern mixologist, touched down in studio to give us a taste.
Bacardi shares 'Mango Fuego' recipe ahead of Grant Park's Sue?os Music Festival
Jose Baltierra III ?– 05/18/2024 – ABC7 Chicago
CHICAGO (WLS) -- Next weekend, thousands of people will fill Grant Park for the 2024 Sue?os Music Festival.
The two-day fest next Saturday and Sunday features Reggaeton and Latin artists from around the world.
Unfortunately, tickets sold out back in January, but there is a wait list fans can join.
Bacardi Premium Rum Portfolio Specialist Pito Rodriguez and Portfolio Brand Ambassador Allaina Roberson joined ABC7 on Saturday morning to talk about some of fun and exciting events Bacardi has planned for festival goers.
They also made a Mango Fuego using the following recipe:
Ingredients:
1.5 ounces Bacardi Mango Chile
4 ounces Grapefruit Soda
Lime juice
Lime wedge
Tajin
Preparation:
Add Bacardí Mango Chile, grapefruit soda, and lime juice to a glass.
Stir vigorously. Strain into a glass filled with ice.
Top with on the rim and garnish with a lime wedge.
Top whisky, rum and gin brands could pull products from LCBO amid pricing dispute
Chris Fox ?– 05/20/2024 – Toronto News
A group that represents a long list of spirit brands is warning that some popular products could be pulled from the Ontario market amid a multi-million dollar dispute with the LCBO.
Spirits Canada issued a press release on Friday morning in which it claimed that it had been “blindsided by a staggering multi-million-dollar retroactive tax bill from the LCBO” which “could drive some consumers' favourite brands out of the market.”
However, in a subsequent statement the LCBO refuted that claim as “inaccurate and highly misleading.”
It said that its contracts with suppliers requires that it be given the lowest price in Canada for all products and that the dispute hinges on “pricing chargebacks” in accordance with the contracts and not “fines or penalties.”
“Ontario consumers are being overcharged by some suppliers. Compared to other jurisdictions, Ontario consumers have paid up to $40 more on select brands of product. Ontarians should not be at an unfair disadvantage from suppliers selling beverage alcohol to other provinces at a lower price,” the LCBO’s statement notes. “LCBO’s contract with suppliers is intended to help drive the lowest or most competitive prices for Ontario consumers. Ninety percent of our suppliers comply with our policies. It would not be fair to let a few suppliers gouge Ontario consumers.”
Spirits Canada is a trade organization that represents nearly 70 per cent of the spirits products sold in Ontario, including well-known brands like Crown Royal whisky and Bacardi rum.
It is accusing the LCBO of “unilaterally clawing back payments on products sold in 2023” based on the claim that Quebec's liquor board obtained similar products at a lower price.
But Spirits Canada claims that the LCBO is relying on a “long dormant clause” to demand the lowest wholesale price when under Ontario law the minimum price that alcohol can be sold for increases every year, pushing up the LCBO’s margin in the process.
“Just this year, the minimum price markup was increased by almost five per cent, widening the gap even further between Ontario and other provinces. As a result, today Ontario consumers are paying $31.15 for the lowest priced 750 ml bottle of vodka, while Quebec consumers only pay $22.25 at the SAQ,” the release states. “Punishing suppliers for circumstances beyond their control is unfair, provides no benefits to consumers, and puts suppliers in an impossible situation.”
In its statement the LCBO said that it is “acting in the best interests” of its customers “to ensure that retail prices in Ontario remain competitive.”
It said that of the 10 per cent of its suppliers that are not currently compliant with their contracts “over 80 per cent” are working cooperatively with the Crown corporation on “payment terms and conditions.”
However, Spirits Canada said that as a result of the dispute its member companies will be “compelled to examine all possible options for action.”
"In 2024, it only makes sense for Ontario consumers to have as many choices as other provinces when buying beverage alcohol, and for distillers of all sizes to be able to sell these products under more transparent and growth-oriented business practices,” Senior Vice President, Public Affairs and Policy at Spirits Canada Lorena Patterson said in the release.
Cuba laments collapse of iconic sugar industry
Will – 05/17/2024 – BBC News
The men of the Yumuri sugar co-operative in Cuba have worked the cane fields around the city of Cienfuegos since they were old enough to wield a machete.
Cutting cane is all Miguel Guzmán has ever known. He comes from a family of farm hands and started the tough, thankless work as a teenager.
For hundreds of years, sugar was the mainstay of the Cuban economy. It was not just the island's main export but also the cornerstone of another national industry, rum.
Older Cubans remember when the island was essentially built on the backs of families like Mr Guzmán's.
Today, though, he readily admits he has never seen the sugar industry as broken and depressed as it is now - not even when the Soviet Union's lucrative sugar quotas dried up after the Cold War.
Spiralling inflation, shortages of basic goods and the decades-long US economic embargo have made for a dire economic outlook across the board in Cuba. But things are particularly bleak in the sugar trade.
"There's not enough trucks and the fuel shortages mean sometimes several days pass before we can work," says Miguel, waiting in a tiny patch of shade for the Soviet-era lorries to arrive.
The lost hours of harvest as men and machinery lie idle have acutely hurt production levels.
Last season, Cuba's production fell to just 350,000 tonnes of raw sugar, an all-time low for the country, and well below the 1.3 million tonnes recorded in 2019.
Miguel is one of the fastest cutters in his team - or pelotón - recognised by his bosses as among the most efficient in the country. Yet he says he receives no financial incentive for greater production beyond his love of the trade.
"My wages barely buy anything any more," he says with no hint of exaggeration over the worsening inflation in the country. "But what can we do? Cuba needs the sugar."
It certainly does: Cuba now imports sugar to meet domestic demand - once unthinkable, and a far cry from the glory years when Cuban sugar was the envy of the Caribbean and exported around the world.
Inside Ciudad Caracas, a 19th-Century sugar mill near Cienfuegos, the air is thick with the overpowering smell of molasses.
As obsolete, rusting cogs grind tonnes of sugarcane into pulp and juice, the workers tell me it is one of just two dozen working sugar mills in Cuba.
"That's four more than originally planned for this season, thanks to the hard work and effort of the workers," says Dionis Pérez, communications director of the state-run sugar company, Azcuba. "But the other 29 are at a standstill," he acknowledges.
"It's a disaster. Today the sugar industry in Cuba almost doesn't exist," says Juan Triana of the Centre for Studies of the Cuban Economy in Havana.
The slump in sugar has serious implications for other parts of the Cuban economy, he argues, including on its export earnings from rum. "We're producing the same quantity of sugar Cuba produced in the middle of the 19th Century."
The problems have undoubtedly been worsened by the "maximum pressure" policy brought in by former US President Donald Trump. His administration ratcheted up the trade embargo on the island, a measure later extended by President Joe Biden.
But the issues facing Cuban sugar are not solely the fault of the US embargo.
Years of chronic mismanagement and underinvestment have also wrecked the once-thriving industry. Today, sugar receives less than 3% of state investment as the Cuban government backs tourism as its main economic motor instead.
One man who can still get his hands on enough sugar is Martin Nizarane. Part of a new breed of Cuban private entrepreneurs, his company Clamanta produces yoghurt and ice cream in a factory outside Havana.
As Mr Nizarane shows me sacks of sugar imported in bulk from Colombia, he says he hopes to double production soon.
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The business has been hailed by Cuban President Miguel Díaz-Canel as a model for the future.
That praise from the top, to many, amounts to a paradigm shift.
It may still be considered a dirty word by the Cuban state but this is capitalism pure and simple, even if Martin Nizarane displays his revolutionary credentials by adorning his office with photographs of him hugging the late revolutionary leader, Fidel Castro.
I put it to him that only people with close ties to the Cuban Communist Party can own a private business as sophisticated as his.
He was quick to deny it.
"I am not an employee of the Cuban state. This is a non-state form of production which sells to both other non-state entities and state-owned companies," he retorts.
"The state treats me like just another private entrepreneur with no special privileges whatsoever."
Sugar's demise is just one part of Cuba's faltering economy.
On 1 March, amid growing inflation, the government imposed a five-fold price increase on subsidised fuel at the petrol pumps.
It was a difficult but overdue decision, officials said, arguing the government could no longer afford such high subsidies on fuel.
As he queued to fill up his tank on the day the new prices came into force, Manuel Domínguez said he was not convinced.
All he knows is that the measure is hurting drivers like him, and that Cubans are suffering now more than he can ever recall.
"There's no relationship between what we earn and the prices we see - whether that's fuel or food in the shops or anything else."
"There needs to be a correlation between our wages and what things cost because, right now, for the average Cuban, fuel is simply unaffordable."
A few days later, economy and planning minister Alejandro Gil Fernández was arrested for alleged corruption. Some think he has been made a scapegoat for the state of the Cuban economy.
Either way, it was an extraordinary - and very public - fall from grace. But most think it will take much more than one ministerial head to roll to pull Cuba from its economic woes.
Back in the sugarcane fields of Cienfuegos, the cutters carry out their gruelling work with little optimism.
Invariably, when talking about the sugar industry in Cuba, someone will quote the island's famous refrain: "Without sugar, there's no country."
For Cuban economist Juan Triana that idea is being tested to its limit.
A quintessential part of the national identity - part of the island's very DNA - is being eroded before Cubans' eyes.
"For more than maybe 150 years, the industry of the sugarcane was both the main export income and the locomotive for the rest of the economy. That's what we've lost."
Zapaca Rum Team Up with Luar to Bridge the Worlds of Luxury Spirits and Fashion with Limited-Edition Hosting Kit
Michael Halliwell – 05/20/2024 – Pause Mag
“A Vibrant Celebration of Heritage, Innovation and a Shared Vision.”
In homage to the inspirational women in Luar Founder, Raul Lopez’s life, the beloved Brooklyn-based designer has teamed up with luxury rum brand, Ron Zacapa to design an exclusive seven-piece bar kit in a unique twist on the label’s now-iconic ‘Ana bag’.
Identifying the pair’s shared Latino roots as a cause for their mutual commitment to craftsmanship and heritage, the unlikely collaboration arrives as a tribute to skilled female Mayan artisans. Marrying high fashion aesthetics and traditional weaving techniques, the limited-edition endeavour is defined by the Guatemalan brand’s handmade petate trim, which typically adorns each of its bottles and now adorns each of these bags.
Celebrating the crown jewel of Zacapa’s portfolio, Zapaca XO, the collection is comprised of a glass decanter with a signature leather and Perate sleeve, a custom shaker, a cocktail spoon, linen cocktail napkins, and leather and Petate coasters. Topped with the Ana bag’s instantly recognisable circular handle, the empowering partnership is rooted in culture, community and craft.
On the collaboration, Raul Lopez says, “I’m beyond excited to introduce this incredible collection, a true game-changer for those moments we gather to celebrate in style. Collaborating with Zacapa has been an enriching experience, a celebration of our shared Latino heritage and a tribute to the roots that ground us. The craftsmanship of the incredible women of the Petate weaving communities fills me with immense respect. It’s an honour to weave their craft into my designs. Knowing that Zacapa supports over 700 female artisans in this tradition makes me incredibly proud to highlight their beautiful work in our collaboration.”
Sam Salameh, Vice President of Zacapa at Diageo North America echos Raul’s sentiments, saying, “Zacapa is thrilled to join forces with Raul Lopez of Luar…this collaboration is more than just a limited edition collection; it’s a vibrant celebration of heritage innovation and a shared vision that captivates and inspires.”
The Zapaca x Raul Lopez collaborative collection is available exclusively for pre-order via reservebar.com
Rum Journal: From Jamaica, a Legendary Brand Grows Up
Staff – 05/16/2024 – ?Caribbean Journal Staff
“We have Myers’s.”
If you were a rum enthusiast a few decades ago, you’d know this common refrain.
You’d walk into a decent-looking bar in the United States, scour the back shelf, ask for an aged rum, and get that reply.
For a long time, Myers’s was the loneliest rum, a nomad on American bar shelves, a solitary ambassador for Caribbean rum in a sugarcane desert.
It was an unfortunate position for a storied rum brand that dates back to the late 19th century in Jamaica, one that has a strong cocktail making pedigree and still holds a place in the hearts of all rum drinkers.
As the rum world has changed in the last few decades, though, Myers’s now has company on bar shelves, and while it can certainly hold its own in a mai tai, it will never be mistaken for a sipping rum.
That’s why I was so surprised on a recent Total Wine trip to find that there was a new Myers’s on the market.
Except it wasn’t that simple, robust, pungent spirit. It was something new.
This is Myers’s Rum Single Barrel, a 43-degree expression aged in Sazerac Rye Whiskey barrels (Sazerac owns the brand), although the company doesn’t reveal the aging length.
This is a grown-up, more premium Myers’s, and it’s a rather exciting development.
So what’s it like?
The nose has caramel, mango, chocolate and orange peel.
The flavor profile is marked by dark chocolate, paper, citrus peel and banana, with some good-old-fashioned Jamaican funk.
The finish? It’s anise and cane stalk, and another wallop of funkiness.
This is a cool rum. The original Myers’s is there. But there’s something more — it’s Myers’s with a collared shirt and a smoking jacket.
If you were in those bars two decades ago, you’ll undoubtedly agree. This, you see, is a rum drinker’s rum.
Rum Journal Review
92 Points
Rum, Ratios, and Flavor
Matt Pietrek – 05/20/2024 – Cocktailwonk.com
Editorial aside: I’ve been behind in posting for a month or so, primarily because I’ve been preoccupied with releasing The Tequila Ambassador V.O., our fourth Wonk Press book. With things settled down somewhat, I plan to return to my usual posting cadence.
What follows was originally a large section of a lengthy piece I wrote. However, after reading a draft, a wise friend suggested splitting it into two pieces. Below is the first portion, which focuses on a theoretical approach to aromas and flavors in distilled spirits. This approach has deeply impacted how I think about rum, rum styles, and distilled spirits in general.
Part 2 will be a more specific opinion piece building on the concepts presented here.
Flavor Origins
On the first page of the first chapter of Modern Caribbean Rum, I wrote:
Fundamentally, rum is a type of distilled spirit made from a specific source material. This begs the question: What is a distilled spirit?
It’s instructive to reverse those two words: Spirit. Distilled.
Another word for spirit is “essence.” A distilled spirit is the essence of something, concentrated (distilled) to a purer form. Rephrased, distilled spirits are the purified essence of the raw agricultural material from which they’re made.
By this definition, tasting single malt Scotch should bring barley to mind, tequila should taste like agave, rum should evoke sugarcane, and cognac should make you think of grapes.
While this is true to varying extents depending on the spirit in question, many spirits have flavors wholly unrelated to their source material. Sip a glass of Laphroaig and tell me you notice the malted barley aromas before the peat smoke. Go ahead, I’ll wait.
The same is true for bourbon as well. While the taste of the grains in the mash bill — at least 51 percent corn—is usually somewhere in the mix, nearly everyone first notices the oaky, vanilla flavors that linger on the pallet. While these flavors reach deep into a bourbon lover’s heart, they are far removed from the taste and smell of the source grains.
There are two primary steps during spirits production where they acquire flavor:
During fermentation of the source material, e.g., grain, sugarcane, fruit, agave, etc.
During aging.
(For this exercise, I’m excluding spirits flavored after distillation, including gin and spiced/flavored spirits like Fireball or Captain Morgan.)
What about distillation, you say? Distillation isn’t about creating flavor in any significant way. Instead, distillation filters and concentrates the flavor compounds in the wash after fermentation completes. Distillation concentrates the desirable flavors and filters out the undesirable flavors. However, distilling to too high a strength can reduce desirable flavors created during fermentation.
When it comes to fermentation flavors, think fruity and (sometimes) grassy. Imagine oak, vanilla, cinnamon, and roasted coffee for aging flavors. When a cask is brand new — a requirement for aging bourbon — the wooden staves are a veritable tea bag of oak and vanilla flavors that quickly infuse the spirit.
The flavors from fermentation and aging rarely overlap and are fairly easy to differentiate in a spirit. It’s unlikely you’ll get oaky flavors from fermentation or banana notes from time in a cask.
A musical analogy is useful here. Think of a two-piece band like The White Stripes, where Jack’s guitar playing represents fermentation flavors and the aging flavors are Meg’s drumming. You’re not likely to mistake Jack’s guitar chords for Meg’s drum fills. Jack playing by himself is an unaged rum. Stretching this analogy to the breaking point, just like Jack and Meg can independently play softly or aggressively, fermentation and aging flavors can be independently very soft or very aggressive.
A rum fermented for a day or two using regular “brewer’s yeast” will have far less fermentation-derived flavor than a rum fermented for 3 weeks using dunder, muck, and wild yeast. Think Bacardi Superior compared to Rum Fire or the Haitian clairins.
Likewise, a rum aged for a year in a large wooden vat will have far less wood-extracted flavors than a rum aged for 20+ years in a bourbon or ex-bourbon cask. Think Rhum J.M Eleve Sous Bois versus Appleton Estate 21. In the tequila world, it’s the difference between a reposado and an extra anejo.
Before continuing, it’s important to note that the aging process is much more complicated than extracting flavors from the wood. Certain flavors are transformed, some are intensified due to the angel’s share loss, and others are diminished. We won’t examine all these details here. However, Chapter 8 (Rum Production: Aging) of Modern Caribbean Rum dives deep into all aspects of aging process chemistry.
A Different Way to Think About Flavor
With the above background in mind, here’s how I approach and understand distilled spirits—both within and across categories.
Every spirit possesses some combination of fermentation and aging flavors. Without considering what those flavors are, we can assign values to our perception of the intensity of both types of flavor.
For fermentation flavors, 0 represents pure vodka, i.e., no discernible flavor, while 10 is the most intense flavor you can imagine, such as Hampden Estate DOK.
For aging flavors, 0 means no aging flavor at all, i.e., an unaged spirit. 10 is intensely woody, to the point of being bitter and undrinkable. I’ve tasted certain rums aged for 30+ years that aren’t pleasant to drink and approach a 10 on the scale. To my palate, the typical 10+ year aged bourbon is around 6 on the scale.
These intensity values imply nothing about what the flavors are, just how intense they are. Taylor Swift, M?tley Crüe, and the London Philharmonic sound very different, but all can be played softly or at an earsplitting volume. Also, intensity values vary from person to person and aren’t strictly linear. Think of them like the volume control on your TV/stereo/mobile device. One person’s intensity ‘4’ may be another person’s intensity ‘6’, and that’s OK.
Once we’ve established how intense the fermentation and aging flavors are — per our personal and subjective criteria — we can also compare them to each other. If the fermentation intensity is substantially more than the aging, we can say the spirit is fermentation-forward. Likewise, if the aging intensity is much larger than fermentation, we can say the spirit is aging-forward.
Fermentation-Forward and Aging-Forward Examples
Fermentation-forward spirits typically utilize a relatively long fermentation duration and have little or no aging. Prime examples include unaged Jamaican overproofs, unaged cane juice spirits like “blanc” rhum agricole, Rivers Royal from Grenada, grand ar?me, and clairins like Le Rocher.
Yes, there are rums with a fair amount of aging flavor that still qualify as fermentation-forward. Consider Hampden Overproof, Hamilton Jamaican Pot Still Blonde, and Rum-Bar Gold. The aging notes are there but lurking in the background.
Aging-forward spirits achieve their dominant flavors from time in a cask. Putting aside the white rum subcategory for now, nearly all Spanish Heritage rums are aging forward. Many rum aficionados dismiss Spanish Heritage rums as bland and uninteresting, but these rums intentionally cater to the preferences of the drinking population from which they originate. As a style, Spanish Heritage rums are no less valid than the wild Jamaican hogo bombs.
The hallmarks of the classic Spanish Heritage style are:
A relatively short fermentation period
Distillation of some or all of the spirit at high strength (>90% ABV)
Significant development of wood-derived flavors during aging
Well-known examples of aging-forward rums include Bacardi Ocho, Flor de Ca?a 12- and 18-year, Havana Club 7, Brugal 1888, and Santa Teresa 1796. One of the signature notes of Spanish Heritage rum is roasted coffee beans. I particularly pick up that aroma in Flor de Ca?a expressions.
What about traditional “white rums”? Or, as I prefer to call the category, “lightly aged and filtered rum?” This style is characterized by relatively light fermentation and aging flavors resulting from short fermentation and high-strength column distillation. Bacardi Superior, Havana Club 3-year, Tanduay White, and Flor de Ca?a 4 Extra Seco are emblematic of the style. I’d be hard-pressed to call such rums either fermentation-forward or aging-forward.
Naturally, some rums are well-balanced between fermentation- and aging-derived flavors. A good example is the lightly aged rhum agricoles of Martinique and Guadeloupe. Look for expressions labeled élevé sous bois (aged at least 12 months in oak containers) or VO (aged at least 3 years in oak casks no larger than 650 liters.) Some of Renegade Rum’s current Cuvée series also exhibit a good balance between fermentation and aging flavor.
In general, if a rum has a healthy dose of pot distillate and ages for 4 years or less in ex-bourbon casks, there’s a reasonable chance it has both fermentation and aging flavors in roughly equal proportion. Likewise, a column-distilled rum can achieve a similar balance if it starts a flavor-packed wash and distillation doesn’t go above 85% ABV or so.
To the Charts!
I’ve made a few charts to illustrate the above concepts visually. In these graphs, The Y-axis (intensity) goes from 0 (vodka / no aging) to 10 (hogo monster extraordinaire / way over-oaked and bitter). Reasonable people may disagree with my intensity value choices, but the overall point stands.
Wrap Up
What I’ve written above isn’t particularly advanced or radical. However, it outlines an approach to evaluating a spirit that few reviewers utilize. By intentionally focusing on a spirit's flavor intensity rather than specific flavors, the intent of the spirit’s creators comes to the front. For example, is preserving the flavors of the source material most important? Is the distillate just a substrate to layer on aging-induced flavors? Or is the distiller/blender looking to create a symphony of different types of flavors?
The above also provides a mechanism for grouping spirits with radically different tastes but a similar ethos in how they’re made. For example, unaged Jamaican overproof rums like Rum Fire, Rivers Royale, Savanna Lontan, and Clairin Le Rocher are all playing a very similar game, i.e., intense flavor with no concession to tempering things via aging. Likewise, bourbon is an aging-forward spirit that invites comparison to certain aging-forward rums. We’ll explore this topic in a subsequent post.
Wine & Spirit Wholesalers of America’s Annual Fly-In and Toast to Congress Promotes Family-owned Businesses and Celebrates Successful Alcohol Regulation
Staff – 05/17/2024 – WSWA
Wine and spirits distributors from across the country who do business in every congressional district and make up Wine & Spirits Wholesalers of America (WSWA)’s membership, completed over 100 meetings with congressional offices to discuss industry matters this week. Points of focus this year were the important tax policies set to expire in 2025 that are critical to these family-owned businesses and the need for a robust regulatory framework for cannabis and intoxicating hemp-based products.
“Our family-owned wholesaler members engaged with Members of Congress about the value we bring to the industry and are reinvigorating the public-private partnership that has produced the safest, most efficient and successful alcohol marketplace the world has ever seen,” said WSWA President and CEO Francis Creighton.
Wednesday evening concluded with WSWA’s annual Toast to Congress, an event for WSWA wholesaler members, Members of Congress and Hill staffers. More than 900 Capitol staffers and Members of Congress registered to attend the reception. Six wholesaler branded bars poured specialty cocktails and wine tastings. The bars were hosted by: Breakthru Beverage Group, Legacy, Opici Family Distributing, Republic National Distributing Company, Southern Glazer’s Wine & Spirits, and Winebow.
Wine and spirits wholesalers employ more than 86,000 Americans across every state and congressional district who earn a collective $7.8 billion in annual wages as part of an industry that generates more than $40 billion in tax revenue each year. To learn about the economic impact of wine and spirits wholesalers nationally, or by state, congressional district, state senate district, or state house district.
In data: How have consumers changed the way they buy alcohol?
Henry Mathieu – 05/15/2024 – Just Drinks
Approximately 30% of global consumers describe their spend on alcoholic drinks as "low", according to GlobalData.
Following a global pandemic in 2020 and the ongoing conflicts between Russia and Ukraine as well as Israel and Palestine, barring some notable exceptions, inflation rates have generally been easing in 2024.
However, as a result of such uncertain economic situations, global consumers have cut their spending on non-necessities such as alcoholic beverages, according to a new report from Just Drinks' parent group GlobalData.
Approximately 30% of global consumers now describe their spend on alcoholic drinks as "low", with the beer category particularly seeing a sharp increase in consumers spending less than in 2022.
The data is based on 13 "key markets", which include the US, Mexico, Brazil, Argentina, the UK, Germany, Sweden, China, India, Australia, Singapore, South Africa and the UAE.
Thirty one per cent of consumers described their expenditure as "low" for beer specifically compared to 25% two years ago. Meanwhile, the number of people who labelled their spend on beer as "high" fell from 23% to 17% this year.
The drop in how much people are spending on alcohol is not entirely surprising when looking at the factors driving the value growth of alcoholic drinks in the markets which GlobalData analysed.
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In Mexico, for example, the value of the country's spirits market grew 24.4% from 2023 to 2024 while wine surged 37%. However, in terms of volume, the two categories only grew 5.9% and 7.3% respectively.
Value growth exceeded volume growth in beer, cider, spirits and wine in the US and Mexico over the last year, among several other countries like the UK and Germany. The GlobalData report claimed the reasoning for this was twofold.
Firstly, it is partially indicative of the surge in the 'premiumisation' trend in alcoholic drinks, which is where companies attempt to increase the appeal of its products by focusing on its higher quality and therefore charge more.
The other explanation is "significant inflationary price spikes" from drinks companies as consumer demand has sunk in recent years, due to ongoing alcohol moderation trends and a cash-strapped consumer.
These two main reasons will be the drivers behind forecast positive compound annual growth rates (CAGR) in terms of value for GlobalData's four alcoholic drinks categories.
The group reported that beer, cider, spirits and wine are all set to experience a positive CAGR between 2021 and 2024, and it has estimated that each category will continue sustained growth until 2027.
The spirits category appears as a leader, with a forecasted CAGR value between 2024 and 2027 of 9.2%. It will be closely followed by wines, with a CAGR of 7.3% during the same period.
Meanwhile, beer and cider categories lag with growth of 4% and 4.2% respectively.
"A continuous rise in value can indicate the premiumisation of products, which might be particularly applicable to the wines and spirits categories, already associated with high quality and premium options", the report wrote.
"However, the inflationary price spikes and cost increases on the suppliers' side can also be responsible for the future rise in value."
The consumer spending analysis report also indicated supermarkets and hypermarkets have become a clear leader among channels that sell alcohol, with 34% of global consumers choosing them.
The next best channels were convenience stores and online retailers, with 11% and 10% rates respectively.
The report said: "Supermarkets might be the leading channels not only due to the convenience of buying alcoholic drinks along with other consumer goods, but they can also usually offer lower prices compared to privately owned or independent businesses."
Influencers, Alcohol Brands & Deceptive Advertising Regulations
Jaci Flug and Louis J. Terminello – 05/15/2024 – Greenspoon Marder LLP
Today, every beverage alcohol brand has a marketing plan, and every plan includes an "influencer" or content creator – a person who uses their large social media following to endorse or support a product. Large social media followings come with large responsibilities and that includes compliance with the Federal Trade Commission’s (“FTC”) guidance regarding endorsements.
The FTC protects consumers from deceptive advertising and when it comes to endorsements, the FTC is clear that consumers must know if an endorsement is the result of compensation. So, what is an endorsement? The FTC defines an endorsement as “an advertising message that consumers are likely to believe reflects the opinions or beliefs of someone other than the sponsoring advertiser."
What is compensation? The FTC’s view of compensation is very broad. FTC Guidance tells influencers: If a brand gives you free or discounted products or other perks and then you mention one of its products, make a disclosure even if you weren’t asked to mention that product.
This leaves a vast number of items or experiences that can be deemed compensation. Admission to an event, discounts, and free products, among various other things, are deemed compensation that must be disclosed if they result in an endorsement. The brand's intention in giving the admission, product, or discount is irrelevant, as is the influencer's intention in taking it. If an item was given, received, and resulted in an endorsement, it must be disclosed. Such standards require constant monitoring by marketing teams to ensure compliance.
Per the FTC Guidance, disclosures must be “hard to miss” and can include simple words like “ad,” “sponsored,” or “advertisement.” The FTC made it clear that both the influencer and the product/ brand can be held accountable for violations when it prosecuted artists Cardi B and Jordan Sparks, along with tea maker Teami, for failure to disclose the compensated endorsement. Major social media platforms like Instagram, Facebook, TikTok, and X (formerly Twitter) make disclosures easy and are built into the platform. Other forms of digital endorsement require self-made disclosure notifications.
Brands must also provide guidance to their own employees who may take to social media to proclaim their love/endorsement of company products. If the employee fails to clearly identify their relationship to the company or brand, the posting/endorsement is deceptive, and the brand can be held responsible. It is best to advise employees who want to post about brand products to use language such as “I’m so proud of my team at 'XX' Company for creating…” They must use language that shows their company employment/ connection. Any omission of it will be viewed as deceptive.
As the role of social media, influencers, and celebrities grows in beverage alcohol, compliance with FTC Guidance is critical. DISCUS addresses these issues in their Code of Responsible Practices, reminding brands that compensated endorsements are ads and, therefore, should comply with the entire Distilled Spirts Council of the United States (DISCUS) Code of Responsible Practices. As marketing and advertising continue to take on new or non-traditional forms, brands are best guided by these basic principles: be truthful, disclose compensation in any form, and comply with industry standards.
America’s Family-Owned Wine & Spirit Wholesalers Convene in D.C.
Staff – 05/20/2024 – Bev Whole Saler
This week, wine and spirits distributors from across the country who do business in every congressional district and who make up Wine & Spirits Wholesalers of America (WSWA)’s membership, will connect with congressional offices to discuss industry matters. One point of focus this year will be important tax policies set to expire in 2025 that are critical to these family-owned businesses to create jobs, modernize fleets and facilities, and support employee-centric and community-based programs, according to WSWA.
“Our family-owned wholesaler members are talking with Members of Congress about the value we bring to the industry and are reinvigorating the public-private partnership that has produced the safest, most efficient and successful alcohol marketplace the world has ever seen,” said WSWA CEO and President Francis Creighton in a news release.
Wine and spirits wholesalers employ more than 86,000 Americans across every state and congressional district who earn a collective $7.8 billion in annual wages as part of an industry that generates more than $40 billion in tax revenue each year, WSWA states. To learn about the economic impact of wine and spirits wholesalers nationally, or by state, congressional district, state senate district, or state house district, visit https://www.wswa.org/data-and-impact/economic-database .
European Spirits : Nielsen data: Slowdown in European sales growth to c.-4% with volumes down c.-6%
Staff – 05/20/2024 – CITI
EU Spirits volumes fell -6.0% in the 4 weeks to April 21st, steeper than the previous month at -2.5% despite c.70bps softer comps. This leaves 12-week volumes down -4.3%. Industry price/mix moderated to +2.4% vs the previous month at +3.0% leaving overall industry sales down -3.8% (previous month +0.4%). R my Cointreau saw a strong rebound with sales up +6.1% (previous 4-wks -6.2%), while Diageo s decline slowed to -1.4% (-4.5%). Both Campari (+0.4% vs +8.1%) and Pernod (-4.0% vs -2.0%) saw decelerations in the latest 4-wks.
Market & category performance GB sales were down -1.2% (vs -1.5% last month), with volumes down -5.0%. Spain sales were up +0.9% (+2.6%), with volumes down -0.7%. Italy sales fell -12.1% (-3.5%), with volumes down -14.5%. Germany sales fell -4.4% (+5.5%), with volumes down -5.4%. France sales fell -3.3% (-1.5%), with volumes down -4.1%. In the latest 4-wks, there were sales declines across each of Vodka (-4.8%), Brandy (-5.4%), Rum (-7.0%), Whisky (-7.6%), Liqueurs (-8.8%) and Gin (-9.9%).
Diageo – Sales were down -1.4% in the last 4W, compared to -4.5% last month, on 315bps softer comps. This brings the 12W to -1.9%. Total European volumes fell -5.8% (12W -4.9%) and price/mix grew +4.7% (12W +3.2%). On a 2019 stack, sales growth was weaker at +8% vs +10% last month. Value share was up +33bps in Europe.
Pernod – Sales in the last 4W were down -4.0%, after -2.0% decline in the previous 4W despite c.400bps softer comps. The 12W sales growth trend is now running down -1.7%. Volumes were down -4.9%, with France down -9.1% and UK down -12.3%. Price/mix grew by +1.0%. 2019 stack sales growth slowed to +12% vs +19% last month with UK higher at +25% vs +4% last month. Market share was down marginally by -2bps in the last 4W.
Campari – Sales grew by +0.4% in the last 4W, compared to +8.1% in the previous 4W on +50bps softer comps. The 2019 sales stack was lower at 135 vs 149 last month. Volumes were down -5.7% and price mix grew +6.5%. In Italy, Campari s sales declined -19.0% while the 4-yr sales stack was down to 95 (last month 97).
Remy Cointreau – Sales grew by +6.1% in the 4W, compared to -6.2% in the prior period on -779bps similar comps. The 2019 sales stack growth was up +16% vs -3% last month. Volumes grew by +13.5% and price mix fell -6.6%. Value share was up +5bps for the 4W period.
Scope of Nielsen data Nielsen provides data for 5 markets in Europe along with the total Europe data which covers nine markets (Germany, France, Great Britain, Italy, Spain, Austria, Belgium, Netherlands and Portugal). While the coverage is different in each market, we estimate it covers c.80% of the European off-premise. We estimate that c.55-70% of Western Europe Spirits sales are made in the off-trade.
Until the next newsletter!
Federico Hernández - The Rum Lab
Property and investment consultant
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