TheRumLab Industry Newsletter Week #23 of 2024
The Rum Lab
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KAREN áLAVAREZ SEIJAS Flor de Ca?a, Regional Brand Ambassador South America ?
TRL: Who is Karen álvarez? I started in the world of the bar when I was studying at the University. I started as a bar assistant, then I founded my first venture (cocktail catering). I founded my first bar in my hometown (Trujillo, Peru), while I participated in several cocktail competitions where I won several awards and all these experiences allowed me to start traveling, discovering more about the bars, cocktails, and distillates of the world.
I moved to Lima and after being behind the bar for almost 10 years, I became part of the Flor de Ca?a family as a Brand Ambassador. Working as a team, we positioned the brand as the most consumed imported rum in the country and a brand present in all bars nationwide.
After 4 years, I became a Regional Brand Ambassador for South America and I am working with all the Brand Ambassadors in Chile, Peru, Ecuador, Colombia, and Bolivia. We want to continue positioning Flor de Ca?a Rum in the region, sharing with the entire bartender community and bringing them closer to the principles of sustainability, which is one of the main pillars of the brand.
TRL: What does the rum mean to you? What made you fall in love with rum and when did it happen?? For me, rum means the union of two qualities that I appreciate very much, one is patience and the other is the ability to enjoy the present. A lot of patience is necessary for aging and when the product is ready we have to learn to drink it without haste and thus enjoy the present moment. I fell in love with this distillate when I started to learn about good drinking. In general, Peru is a country that consumes a lot of rum so it is part of the general culture.
TRL: Benefits that the rum industry has given you.? I have visited many countries and have connected and shared with people from all over the world. I have also tasted rums from different parts of the world and learned from the best about this exciting industry.
TRL: What’s another thing you are passionate about, in addition to rum? Why?? I love reading and spending time at home with my family and my two cats. I think it is very important to take time for yourself and your loved ones, especially when you travel frequently.
TRL: What is your favorite place for drinking rum?? I love the sea, the beach is my favorite place, especially Guacalito de la Isla beach in Nicaragua.
TRL: Favorite drink + Recipe? Rum and Coffee Tonic.? -2 oz. Flor de Ca?a Rum 12? - 0.50 oz of cold brew coffee? - 0.25 oz of lime? Complete with tonic water. Garnish with lime peel.
TRL: Why is it important to educate the rum consumer?? It is important because we give them the necessary tools to make a better choice when choosing a rum and we also promote the responsible consumption of our products.
TRL: Any tips to train the palate and taste a good premium rum?? Taste everything! The greater the universe of flavors you have in your memory, the more you will be able to have a better criterion to notice the particular characteristics of each product.
TRL: How can the rum contribute to improving the crisis in some countries?? The rum industry can contribute to improving the social crisis. The first step is to become aware of what is happening around and plan actions to improve the quality of life of the inhabitants. For example, Flor de Ca?a offers free medical services and education to workers and their families. It also supports other social initiatives such as APROQUEN, an NGO that cares for children and young people affected by burns.
TRL: Is the commitment to sustainable development the key to success for the permanence of the rum industry in the world? Why?? Today, sustainability is no longer optional, but an inherent part of business reality. For this reason, it is a basic pillar for industries such as the rum industry to develop consciously, taking care of the environmental and social aspects of their surroundings, complying with standards to achieve certifications, and seeking to promote a message of sustainability.
TRL: What are your next goals in the rum industry?? My next goal is to share about the magical world of rum with people from more countries in South America such as Brazil, Argentina, and Uruguay.
TRL: Plans you have when you leave the rum industry.? I want to continue in the world of bar and alcoholic beverage marketing.
TRL: Why is the role of the bartender important in the rum industry?? Bartenders are key players in the consumption chain because through creativity they bring rum closer to customers through signature or classic cocktails, telling stories, or educating lovers of the world of distillates. A good bartender makes cocktails and also shares knowledge from the bar.
TRL: What is your advice for new generations in the rum industry?? Live in the present, always enjoying yourselves in moderation.
TRL: How can people learn more about you? Website? Social media page?? https://www.instagram.com/karenaseijas/? I always share the routes of bars I visit in my travels, cocktail recipes, and information about the magical world of the bar.
Gosling's Reserve wants you to treat rum like fine bourbon. It's got a sweet, sippable point
Christian D′Andrea – 06/03/2024 – FTW USA TODAY
Welcome back to FTW’s Beverage of the Week series. Here, we mostly chronicle and review beers, but happily expand that scope to any beverage that pairs well with sports. Yes, even cookie dough whiskey.
Rum is a blind spot for me. It’s not that I don’t like it, it’s that I rarely drink it without a mixer that significantly obscures its taste. In college, that was Coke. After landing a junket trip to cover the America’s Cup in Bermuda — I was SB Nation’s designated “white guy sports” for a while there — it became dark n’ stormies.
This was always fine, because the extent of my rum purchases was more or less limited to:
a) Costco’s spiced rum (a tremendous bargain), and
b) whatever was marked down in the bargain cart at Woodman’s for $5.99. For a while this was Bayou rum, which is also pretty good.
But Gosling’s offered me something better and terrifying. An $80 bottle of rum aged in rye whiskey barrels (hell yeah).
Gosling’s already has a built in advantage as a go-to ginger beer (especially since it’s one of the few brands to make a light option). And they’d already kinda crushed their entry into the ready-to-drink cocktail market, albeit with entirely too many calories in each of their canned dark n’ stormies and some rough fruit flavors that mucked the whole thing up.
Maybe this left me a bit compromised on my way to this taste test. On the other hand, I’m a big rum dummy so maybe it didn’t. Let’s see what we’ve got.
Gosling’s Family Reserve Old Rum: A-
I’ve poured it into a rocks glass with ice. Clearly, my fanciest rocks glass for my fanciest rum. It’s dark and a little thick and smells sweet and vanilla. You pick up a little bit of that bourbon barrel influence as well. Since we’re dealing with an 80 proof spirit there’s no disguising the alcohol within, just making it smell a little better.
It is an undoubtedly sweet spirit, which, duh. While you’d never mistake it for a lighter drink, there’s no real burn involved here. Barrel aging has softened the edges of a booze I’d ever only used for mixing in the past. It starts off a bit neutral with some light candy bar flavors, then the rum hits your tongue running with a little cinnamon, a little allspice, and lots of that vanilla.
That makes it a deserving straight-up sipper. And as the ice melts it mellows down nicely into a lovely dram. I don’t typically drink rum straight up. This may change that.
Gosling’s Family Reserve Old Rum with Betty Buzz ginger beer: A-
Look, I probably shouldn’t. But it’s rum. I’m gonna mix it with something. And while I’d love to make a dark n’ stormy, I am tragically lime-less. But that gives the rum an extra chance to shine against the spicy and bready carbonation of the ginger beer.
Tonight we’re rolling with Blake Lively’s brand of mixers, Betty Buzz. You may remember her from the Betty Booze line of canned cocktails that punched well above their weight class. Well, I’m taking that base and using it for my own, very basic drink.
Good news: this rules. The carbonation and ginger heat thread together, creating a dense flavor that’s sweet but uses that mixer to create a balanced, simple and borderline lazy cocktail. A lime would add another layer here, sure, but the fact this can stand up in a two-step drink is a testament to its quality.
Do you want to use an $80, barrel aged rum as a mixer? Probably not! Can you? Oh, hell yeah. It’s great.
Would I drink it instead of a Hamm’s?
Welcome to a new feature on these reviews; a pass/fail mechanism where I compare whatever I’m drinking to my baseline cheap beer. That’s the standby from the land of sky-blue waters, Hamm’s. So the question to answer is: on a typical day, would I drink Gosling’s Reserve rum over a cold can of Hamm’s?
Absolutely. But I could buy about 160 cans of Hamm’s for the cost of one bottle of Gosling’s Reserve, so I probably won’t.
Special edition rum honours cricket legends
Shamar Blunt – 06/01/2024 – Barbados Today
In celebration of this year’s ICC T20 Cricket World Cup, West Indies Rum Distillery has launched a special edition rum which it is calling Cricket Legends XO Planteray Rum.
During the launch, several of the island’s former cricketers including Joel Garner, Tino Best, Fidel Edwards, Sherwin Campbell and others took part in the reveal for the new special edition rum which will be available in a number of retail stores from Monday.
Garner, who is also the Chairman of Cricket Legends of Barbados Inc, said the partnership with West Indies Rum Distillery was a great opportunity for the Legends brand.
“I’m pleased to be associated with [Planteray Rum], anything that is legendary will go well with us. We are a group of former cricketers who all played for Barbados and the West Indies, we have travelled far and wide, we have made a lot of friends around the world so it would be a pleasure to also advertise your product.
“I hope this would be the beginning of a long and lasting partnership, and we at Legends are happy to be associated with your product. I can assure you that we will do everything to make sure that it gets the publicity and the mileage that is due to it because it is a good product,” Garner said.
Meanwhile, Ricky Nurse, Sales & Marketing agent with Stansfeld Scott Inc, said the challenge from Prime Minister Mia Mottley to do more with the cricketing brand was one they were pleased to take up.
“I think it was instructive that less than 48 hours ago, our Prime Minister Mia Mottley spoke to the legacy of the legends, and your brand challenges all of us to do more. We have to ensure that based on the success that we are having globally with this brand, that we are also able to jump on the other end with a partnership to ensure that this is a limited edition expression that can repeat itself,” Nurse said.
“We have the product available in all of our Wine World stores, we will have it in our key retail stores by Monday, we will have it in all of the airport inbound and outbound stores by Monday. We have to make sure as well that we come up with an arrangement that works for you guys in terms of your [Legends] store, and we are working with your team to ensure that all [World Cup] game days, certainly till the end of June, that we have it available at your facility.”
Top 5 Rum-Based Cocktails To Enjoy In The Sun This Summer
Caroline Cooper – 05/31/2024 – Luxury Life Style Mag
As summer arrives and we set our sights on holiday season, there’s no better way to cool off than with a refreshing, rum-based cocktail in hand.Cocktails have long been a symbol of celebration and indulgence, they bring people together, spark conversations, and allow individuals to explore a world of unique flavours, ingredients, and geographies.
At the heart of many classic and innovative cocktails lies rum, hailing from the Caribbean, the spirit’s rich history is intertwined with the culture and geography of the region, particularly in Cuba. Cuban rum, the famous base for drinks such as the iconic Mojito, has been an integral part of the country’s identity and heritage since the 16th century.
What makes rum a superb cocktail base is its adaptability to various flavour profiles. Light, white rums offer a subtle sweetness that complements tropical fruits and citrus ingredients, while darker, aged rums boast rich, nuanced flavours like caramel, vanilla, and spice. This versatility allows mixologists and enthusiasts alike to craft a diverse array of cocktails, from refreshing and fruity concoctions to bold, spirit-forward sips. As summer arrives and we set our sights on holiday season, there’s no better way to cool off than with a refreshing, rum-based cocktail in hand.
To avoid a rum based cocktail faux-pas, or dillydallying over the never-ending cocktail list, take a tip from us and just make beeline for one of the classics, or bring memories home with you and grab the ingredients to mix it up yourself.
Classic Mojito
The name “Mojito” is said to be derived from the Spanish word “mojo,” which means “spell” or “charm” and was original considered a medical drink dating back centuries. Now a favourite among summer cocktail enthusiasts, the Cuban-born Mojito cocktail is a refreshing mix of white rum, fresh lime juice, mint leaves, and a splash of club soda.
Muddled mint adds a bright, herbaceous note, while the citrusy lime juice and bubbly soda create a crisp, invigorating finish. ?If you learn anything on your Cuban getaway, make sure it’s how to make a mojito!
Ingredients
2 teaspoons white sugar
25ml fresh lime juice
2 sprigs of mint
50ml Havana Club A?ejo 3 A?os
3 ice cubes
Pi?a Colada
In 1954, a bartender named Ramón “Monchito” Marrero at the Caribe Hilton in San Juan, Puerto Rico accidently invented what has become one of the most famous cocktails and a firm favourite for anyone keen to draw some attention. Blending sweet pineapple juice, creamy coconut cream, and smooth white rum, the Pi?a Colada transports you to a tropical paradise with every sip.
Ingredients
60ml Havana Club A?ejo 3 A?os
100ml fresh pineapple juice
30ml coconut milk
5ml lime juice (optional)
1 cup crushed ice
Strawberry Mojito
The Strawberry Mojito cocktail is a delightful twist on the classic Mojito. Combining the refreshing flavours of fresh strawberries, mint, lime, and white rum, this cocktail is a quintessential summer sipper. Muddle strawberries with mint and lime before adding rum and club soda for a vibrant, fruity concoction that’s sure to please.
Ingredients
2 teaspoons white sugar
25ml fresh lime juice
2 sprigs of mint
4 fresh strawberries
50ml Havana Club A?ejo 3 A?os
3 ice cubes
Top up with sparkling water
El Presidente
A timeless Cuban classic, El Presidente is a sophisticated blend of white rum, dry vermouth, orange cura?ao, and grenadine. Created in the early 20th century by Eddie Woelke, an American bartender working at the Jockey Club in Havana, Cuba. Woelke named the drink in honour of Cuban president Mario García Menocal, who ruled from 1913 to 1921, and the name and cocktail stuck. The combination of these ingredients creates a refined, well-balanced cocktail that’s perfect for sipping on a warm summer evening. Garnish with an orange twist for a touch of elegance.
Ingredients
40ml Havana Club A?ejo 7 A?os
20ml Lillet Blanc
10ml triple sec
5ml Grenadine
1 twist orange peel
Classic Daiquiri
The Classic Daiquiri, created by another American and this time from an unlikely source, engineer Jennings Cox, is a timeless cocktail showcasing the smooth flavors of white rum, fresh lime juice, and simple syrup. This minimalist combination creates a balanced and refreshing drink, perfect for sipping on a hot summer afternoon.
Ingredients
1 tablespoon white sugar or 20ml sugar syrup
25ml fresh lime juice
50ml Havana Club A?ejo 3 A?os
3 ice cubes
1 cocktail shaker or large jar with a lid
Whether you prefer a creamy, fruity, or zesty libation, these top five rum-based cocktails are guaranteed to get your through the summer in style – Salud!
Mount Gay unveils Coffey Still expression
Ted Simmons - 6/5/24 - The Spirits Business
The limited edition rum is the seventh release in the Master Blender Collection from Mount Gay and showcases a revived coffey still.
It is the first release from Mount Gay using its 100% copper coffey still since it was recommissioned in 2019 after lying dormant for several decades. The rum is released in tribute to late distiller Reynold ‘Blues’ Hinds, who passed away in 2021 and helped to bring the still back online.
“Creating this expression was a journey into the heart of Mount Gay’s history,” said master blender?Trudiann Branker. “Blues’ influence on the rums we all enjoy today is immeasurable, and this release is a tribute to his legacy and the craftsmanship that defines Mount Gay.”
Mount Gay The Master Blender Collection: The Coffey Still Expression is made from 100% molasses from Barbados and aged for four years in heavily charred ex-Bourbon barrels. It is bottled at 58% ABV and priced at US$240.
Branker calls the distillery’s coffey still a “quiet giant” behind its more famous pot stills. While she wasn’t entirely sure what to expect from the still, one of three in operation globally, she notes a distillate that showed pronounced grapefruit character.
The final bottling displays pear, vanilla, and nutmeg on the nose with grapefruit, oak, and honey on the palate. Branker says that this comes from the initial still run in 2019 and that Mount Gay has been running the coffey still in limited capacity every year since, with plans to incorporate it into future releases.
The Coffey Still Expression joins other Master Blender releases like Andean Oak, Port Cask, and?Pot Still Rum.
New rum leaves south Warwickshire collaborators buzzing
Staff – 05/31/2024 – Leamington Editorial
https://leamingtonobserver.co.uk/news/new-rum-leaves-south-warwickshire-collaborators-buzzing-49994/
A RUM maker is buzzing with excitement over its latest collaboration.
Shakespeare Distillery, based in Stratford, has joined forced with Arden Forest Honey to launch a special three-year Aged Honey Rum.
The distillery crafts its Jester White Rum from scratch by fermenting British milled molasses and in April 2021 the spirit producer began selecting and filling a series of ex-industry barrels with its rum – each of which would be given its own flavour.
The Aged Honey Rum is the second Cask Aged Rum to be unveiled.
It has been matured for three years in a Wild Turkey bourbon cask and blended with award-winning Warwickshire Wildflower Honey.
Arden Forest Honey is a family run business, which was started in 2008, supplying high quality honey from hives across Warwickshire and Worcestershire. The Wildflower Honey is from the biodiverse Heart of England Forest and ancient Ragley estates and it has been awarded its second star in the ‘Guild of Fine Food’ awards.
Steve Browning, owner of Arden Forest Honey said: “Working alongside the award-winning Shakespeare Distillery was a natural collaboration. It is great to see our honey used in another local product, allowing customers the opportunity to have a taste of the abundance of wildflowers grown in fields around the distillery and the local area.”
Simon Picken, director at Shakespeare Distillery added: “We’re delighted to launch our Aged Honey Rum, working in collaboration with a fellow artisan producer in Warwickshire. The rum we’ve created is wonderfully light and balanced with fruity notes and a smooth mouth feel. I can’t wait for our customers to taste this delicious limited-edition rum, which will also make a great gift for Father’s Day next month.”
For more information visit https://www.shakespearedistillery.com/
No. 1 Rum for Beginners in 2024
Sultan Khalid – 05/31/2024 – Insider Monkey
In this article, we are going to discuss the no. 1 rum for beginners in 2024. If you want more options to take your first steps into the alluring world of rum, check out our full list of the 15 Best Rums for Beginners in 2024.
Global Rum Market:
As we mentioned in our article – The Best Rum in 2024 – the global rum market was estimated at $17.4 billion in 2023 and is expected to reach $24.5 billion by 2033, with a CAGR of 3.5% during the forecast period.
Rum is building momentum and getting more popular in U.S.A. Today, the category is one of the most steadily growing and continues to benefit from several intersecting popularity shifts. In recent years, distillers have experimented with flavored rums, making the category much more versatile in offerings, and so today, flavored and spiced offerings account for over 57% of all rums sold.
Recent Developments in the Rum Industry:
The growth of premium rum has also been reflected in the merger and acquisition space recently. It was announced last year that Brown-Forman Corporation (NYSE:BF-B) had completed the acquisition of the Diplomático Rum brand and related assets from Destillers United Group S.L. (Spain), for an estimated $725 million. The spirits giant announced its agreement to purchase the brand in October 2022, giving it an entry into the growing super-premium rum category.
As part of the acquisition, Brown-Forman Corporation (NYSE:BF-B) added a Panama-based aging, bottling, and shipping production facility to the company. Destillers United Group S.L. will continue to produce and age the unique, carefully-crafted, and complex Diplomático Rum in their original distillery at the foot of the Andes mountains.
Shares of Brown-Forman Corporation (NYSE:BF-B) were held by 30 hedge funds at the end of Q1 2024. Fundsmith LLP held the largest stake of almost 11.46 shares, valued at $591.5 million.
Another industry giant that has recently been busy making deals in the rum industry is Diageo plc (NYSE:DEO). It was announced in 2023 that the spirits behemoth has completed the acquisition of the Don Papa Rum brand. The upfront consideration was $276 million, with a further potential consideration of up to $188.6 million through to 2028 subject to performance, reflecting the brand’s current growth potential. Available in over 30 countries worldwide, Don Papa Small Batch Rum is a super-premium dark rum from the Philippines.
Diageo plc (NYSE:DEO) made headlines recently after it announced new plans to trial sustainable paper bottles to hold its Irish Cream Liqueur Baileys. The company has partnered with PA Consulting and PulPac to trial a dry molded fiber bottle which is 90% paper, with a thin plastic liner and a foil seal. Alongside this, the spirits giant is also developing an original spiral-wound paper-based bottle with its Don Papa rum brand. The bottle is in feasibility testing and is expected to be 90% paper-based.
The stock of DEO was also held by 30 hedge funds at the end of Q1 2024 in the Insider Monkey database, with a collective stake value of around $634.21 million. Orbis Investment Management boasted the largest stake of a little over 1.54 million shares, valued at $229.2 million.
Both Brown-Forman Corporation (NYSE:BF-B) and Diageo plc (NYSE:DEO) are ranked among the Most Valuable Alcohol Companies in the World.
With that said, here are the Best Rums to Try for Your First Time.
Methodology:
To collect data for this article, we have referred to a number of sources, such as RumX, Master of Malt, Tasting Table, Reddit etc., looking for the Best Rums for Beginners. To make sure we give you the best of the best, we shortlisted rums that appeared multiple times in the aforementioned sources, assigned them a score of 1 each time they were recommended on these websites, and then summed up the scores and ranked our list accordingly. When two or more rums had the same score, we ranked them by the price (excluding tax) of their 750 ml bottles.
1. Appleton Estate 12 Year Old Rare Casks Rum
Insider Monkey Score: 16
A true expression of Master Blender Joy Spence’s passion, this single estate spirit is made from hand-selected, rare golden rums aged for a minimum of 12 years in the tropical climate of Jamaica. Smooth, robust, and woody – this superb blend reveals aromas of toasted oak, dried fruit, hazelnut, dark cocoa, molasses, orange peel, vanilla, and hints of coffee. Perfect for sipping or mixing into extraordinary cocktails, AE 12 Rare Casks is bottled at 43% ABV.
Appleton Estate, the oldest sugar estate and distillery in Jamaica, produces over 10 million liters of rum annually, 80% of which is destined to be exported.
To learn about other entry-level rums, you can refer to our list of the 15 Best Rums for Beginners in 2024.
Jamaica Rum Distillery Map and Notes
Matt Pietrek – 06/03/2024 – Cocktailwonk.com
Given the surprising popularity of my recently published Guadeloupe rum map, doing the same for Jamaica is a no-brainer. The image above is uploaded in high resolution, so you should be able to click on it to see the full-size version. Although they’re shown on the map for reference, both Innswood and the W&N headquarters are not open to the public.
But wait, there’s much more!
If you’re reading this, it’s probably because you’ll be visiting the island at some point and hope to visit a distillery or five. If you, you’ll need to know how many active distilleries there are, which you can get into, and how far away they are from where you’re staying. I’ve got you covered!
Distillery Briefs
Below are some basic details for each distillery that can help you plan your Jamaican rum expedition.
My Tour Geek Factor rating is my 0/10 scale of how much you’ll experience from the perspective of someone who loves visiting distilleries and understands how rum is made at a deep level. Gift shops and tasting rooms are nice, but a real distillery tour has you peering down into fermenters and profusely sweating from standing 6 feet from an operating pot still. The more you see of a distillery’s day-to-day operations, the higher my rating.
Appleton Estate (Joy Spence Rum Experience)
Tours: Public
Gift Shop: Yes
Tour Geek Factor: 4/10
Owner: Gruppo Campari
Hampden Estate
Tours: Public
Gift Shop: Yes
Tour Geek Factor: 9/10
Owner: Independent
Worthy Park Estate
Tours: Public
Gift Shop: Yes
Tour Geek Factor: 7.5/10 (But it goes way up if you get a sugar factory tour!)
Owner: Independent
Clarendon
Tours: Private
Gift Shop: No
Tour Geek Factor: 10/10
Owner: National Rums of Jamaica
Long Pond
Tours: Private
Gift Shop: No
Tour Geek Factor: 10/10
Owner: National Rums of Jamaica
New Yarmouth
Tours: Nope. No way.
Gift Shop: No
Tour Geek Factor: ∞ (No one gets in, so…)
领英推荐
Owner: Gruppo Campari
Want more detail on each? Modern Caribbean Rum has a 60-page chapter devoted exclusively to Jamaican rum and its producers. Each of the above distilleries has a detailed writeup that includes numerous photos.
Getting Around Jamaica
It’s often surprising to first-time visitors that Jamaica is a large island. It’s also easy to underestimate how long it takes to get from Point A to Point B on a map. It’s only 11 miles from the heart of Montego Bay to Hampden, but driving there will still take an hour. The roads to most distilleries you’ll likely visit are narrow and very rural. Many locals are also prone to drive fast on these roads.
There are many drivers for hire at a daily rate. Just be sure to confirm your itinerary and cost before settling on one. Most cruise ship lines offer a distillery tour package. On these package tours, the odds are high that you’ll travel on a big bus on one of the aforementioned roads.
What Jamaican Rums Should I Buy There?
Hoping to buy all the exotic rums you can’t get at home? Hold up there, partner!
There are very few distillery-only exclusives, and they won’t be inexpensive.
Nearly all high-end and/or limited-edition rums made in Jamaica are exported to the EU, US, and elsewhere. Check what you can get in your home market before you get to Jamaica.
In some cases, you may be able to buy the same bottle at home for less than in Jamaica. Of course, if brands like Worthy Park, Monymusk, and Coruba aren’t imported to your country, buy them while you have the chance!
If it’s not bottled by a Jamaican producer in Jamaica, you won’t find it in Jamaica. That means independent bottlers. Don’t expect to find all the Velier, Doctor Bird, and Holmes Cay Jamaicans in Jamaica.
What is worth hunting for? Things not exported from Jamaica. Some current examples:
The Wray & Nephew Parishes Collection – unaged overproof rum at 70% ABV.
Captain Morgan – Made by Wray & Nephew and completely different from the Captain Morgan found elsewhere in the world. I consider it similar to Kingston 62, i.e., an inexpensive, lightly-aged rum that’s not particularly funktastic.
Charley’s JB & Conquering Lion – Unaged Jamaican overproofs at 63%. The Charley’s JB is effective W&N’s answer to Rum Fire.
Getting Your Rum Home
Live in the US and worried about how much you can bring home? TL;DR – Bring home all you want. At most, it may cost you $25 or so. However, be aware of how US import duties work and the duty-free limit. Most people completely misunderstand how it works. This article sorts everything out for you: Over Your Duty Free Limit! What Happens Next?
Bourbon Drinkers and Barbados Rum – What’s the Deal?
Matt Pietrek ?– 05/29/2024 – CocktailWonk.com
While 98% of what I write focuses on rum, I stay abreast of bourbon happenings and have more than a token bottle of bourbon on my shelves. Among the frequent topics in Bourbonlandia is taters. For those unfamiliar with the term, it’s slang for bourbon buyers who obsessively chase after and hoard bourbons that the bourbon Illuminati have decreed “the best” while ignoring everything else. Several Instagram accounts specialize in tater memes. Pappy Van Winkle, WL Weller and Blanton’s all receive an outsized share of tater attention. Not coincidentally, they’re all made by the same distillery. I’ll leave it as an exercise for the reader to determine if anything similar happens in rum.
With so much attention going to a few “unicorn” bourbons, prices have soared beyond any common sense. Speculators with inside connections snap up sought-after bottles and resell them for much higher prices in the aftermarket. It’s the spirits world equivalent of ticket scalpers.
Given the above, I’m not surprised to see many bourbon drinkers sticking their noses into the rum tent to see if there’s anything worth drinking that doesn’t require a home equity loan. Daily, I see posts like this in r/rum on Reddit:
Bourbon/American Whiskey drinker looking to dabble in the rum world.
As stated by the subject. I’ve been drinking American whiskey for some time now and I have always been curious about the nicer rums out there. What is a good rum to sip on around the $150 price point or less for someone who has only ever had rum in tropical cocktails?
Or
New Rum question from a bourbon drinker.
So I am expanding my liquor out into Rum from Bourbon and Scotch. The notes I generally really enjoy are tobacco/earthy or smoke notes. I don’t know if this is something you find in rum. IF it is can someone recommend a Rum to try
Without fail, the replies are dominated by recommendations for Barbados rums—in particular from Mount Gay and Foursquare. There’s no shortage of stellar quality, readily available rums from around the globe, so we might reasonably expect a broader spectrum of answers than we see. The question is, “What is it about bourbon drinkers and Barbados rum?”
Some might say the now-classic Barbados rum profile is closest to bourbon’s flavor profile. But if we poured snifters of Buffalo Trace and Mount Gay XO for the typical drinker, I’d bet that most wouldn’t consider them to be noticeably similar.
There’s something deeper here. Let’s take a look.
Flavor Profiles
As a precursor to this story, I wrote an earlier story, Rum, Ratios, and Flavor. It describes how nearly all a rum’s flavor comes from two stages of its production process: fermentation and aging. Fermentation flavors should reflect the source materials and are often fruity and/or grassy. In some cases, even oily! The difference in flavor between unaged molasses and cane juice rum? That’s fermentation flavor. That crazy rotting banana flavor you get from most Jamaicans? That’s fermentation flavor.
Aging flavors are vanilla, oak, and spices. Fermentation flavors aren’t easily mistaken for aging flavors, and vice versa. Experienced drinkers can easily tell them apart.
The article also posits that we can individually assign values — from 0 to 10 — to the intensity of a spirit’s fermentation and aging flavors. We can then represent those two values as a ratio, e.g., 2/7, meaning a fermentation flavor intensity of ‘2’ and an aging flavor intensity of ‘7’. Rums made in a similar style, e.g., Spanish heritage, tend to have similar flavor-type ratios. Below is a graph representing a few well-known rums.
As it turns out, most rums are either fermentation-forward or aging-forward. A fermentation-forward rum is where fermentation flavors make up the sizeable majority of the rum’s total flavor. Unaged Jamaican overproof is a canonical example. Likewise, an aging-forward rum derives most of its flavor from aging. Think long-aged Spanish heritage rums like Flor de Ca?a 12 or 21-year-old Panamanian.
Note: the intensity values described above are completely subjective. No scientific measurement is involved. Your intensity rankings may differ from mine for the same rum, and that’s OK. The overarching premise of fermentation-forward vs. aging-forward still stands.
Bourbon and Barbados
Returning to the original topic, we can better understand why Barbados rum is so frequently recommended for newcomers to the rum fold — especially for bourbon drinkers.
Most Barbados rums are an easy stepping stone from bourbon, not because their specific flavors are closely aligned but because their fermentation-to-aging flavor ratios are similar. If we compared the flavor intensities of a typical bottled-in-bond bourbon against a similar-strength Mount Gay or Foursquare rum aged for a decade or more, the graph would look something like this:
Put another way, people usually acclimate faster to something new if the changes don’t force them too far out of their comfort zone. Say you’re a Taylor Swift fan looking for something else for your Spotify playlist. Sabrina Carpenter or Olivio Rodrigo may be more your speed rather than Metallica. Taylor’s and Sabrina’s music is different but not wildly different. Likewise, suggesting Wray & Nephew White Overproof as a first rum for a bourbon drinker probably won’t yield a successful outcome, regardless of how canonical it is in the rum world.
Most bourbon aficionados would agree that bourbon is an aging-forward spirit. In a 2013 article for the Atlantic, Wayne Curtis (a familiar name to many rum heads) wrote:
I recently asked a dozen or so people involved in the bourbon industry how much of the flavor comes from the barrel, and how much comes from other elements, such as the grains used or the distillation method. Most said that 60 or 70 percent of the flavor comes from the barrel, and one went as high as 80 percent. No one I spoke with estimated the proportion at less than 50 percent…
The same could be said for many expressions from Mount Gay and Foursquare. This isn’t to say they have the same vanilla, almond and coconut flavor depth as most bourbons. Bourbon must age in new oak casks, so the spirit steeps in a veritable teabag of wood-derived flavors. Meanwhile, most rums age in ex-bourbon casks—a once-used teabag, if you will. However, Barbados is hotter than the main parts of the US where bourbon is made, so the rate of aging in Barbados is substantially faster. The resulting bourbon and rum aging flavors may not be identical, but they’ll have similar intensities.
Let’s not focus entirely on aging flavors, though. Most bourbon is column distilled, but only to a maximum of 80% ABV. Thus, raw bourbon distillate typically has a moderate flavor heft to it. In contrast, most high-end Barbados rums are a blend of column and pot distillates, with column usually dominating in the blend. The column distillate is usually at a higher ABV, so light in flavor. However, it’s balanced out by the inclusion of heavier pot distillate. Again, the fermentation flavor intensity of bourbon and mid- to upper-tier Barbados rums are roughly equivalent from my perspective.
Note: everything in the preceding paragraph is a generalization. Each Barbados expression has its own blend, and various Barbados distilleries now make high ester pot distilled rum and heavy column rum. The above points still stand.
In the bourbon world, additives are verboten, so another positive checkmark for Mount Gay/Foursquare rums is that both distilleries publicly eschew the use of additives.
Another important favor in courting bourbon drivers is alcoholic strength. High-end bourbon drinkers usually favor their spirit at 50% ABV or more. Mount Gay and Foursquare have growing stables of releases at 50% ABV or higher; bourbon drinkers have taken notice. Beyond the distillery releases, there are plenty of cask-strength Foursquare-distilled rums from various independent bottlers. Such releases aren’t inexpensive but are usually still a bargain compared to bourbons of a similar stature.
Beyond Barbados
Where should a bourbon drinker who has taken to Barbados rum look next in their rum journey? The classic Barbados profile has lots to love, with very little in the way of sharp edges. Going beyond this style can expose sharper edges — often noticeably sharper—but plenty of rums are easy second steps. Let’s look at some options.
Longer-aged Spanish heritage rums like Bacardi Ocho (8-year) and Ron Abuelo 12-year are also quite aging forward. However, many are entirely based on very light column distilled rum. As such, discerning much of the fermentation flavor can be challenging. Many Spanish heritage rums also incorporate a noticeable amount of sweetening. Some drinkers don’t mind, while others are aghast. These rums also traditionally have a maximum strength of 40% ABV, even the most expensive expressions. If your enjoyment of a spirit starts at 50% ABV, you’ll have to look harder to find a Spanish heritage rum that ticks all your boxes.
That isn’t to say there aren’t options worth checking out. Puerto Rico’s Don Q includes medium and heavy column rums in their upper-tier releases. They don’t sweeten or use additives, either. Florida-based independent bottler Grander has a wide swath of higher strength & additive-free rums from Los Cabras in Panama. Don’t sleep on these if you’re in the US.
Outside the US market, the Cuban rum industry has tiptoed into progressively more interesting releases. Both Havana Club have released editions at 50% ABV or higher and using a higher percentage of aguardiente, i.e., heavier column rum. Even the readily available and affordable Havana Club Seleccion de Maestros is worth checking out despite its 45% ABV. I have a stockpile from foreign trips.
Moving away from the Spanish-speaking Caribbean, St. Lucia Distillers remains a hidden gem. Like Mount Gay and Foursquare, St. Lucia Distillers primarily uses pot/column blends. But everything in their Chairman’s Reserve and Admiral Rodney lines punches way above its weight class. They also have a ton of limited releases worth buying immediately on sight. Pro tip: If you dig peated scotch whisky, seek out their rums with distillate from their Vendome pot still.
A bit further afield for bourbon drinkers are Jamaica’s Appleton Estate rums. While Jamaica is famous for its sometimes polarizing “funky” flavors, Appleton dials back the primal funk and replaces it with sublime wood and orange peel notes. While different from what bourbon drinkers are used to, Appleton 12 and 21 usually bring a smile to the lips of bourbon lovers.
As for US-made rums that bourbon drinkers will likely love, Privateer is at the top of many lists. The small Massachusetts distillery uses pot stills and quite a bit of new American oak in their aging regime. The Navy Yard release ages at least four years in new American oak and is bottled at around 57% ABV. To my taste buds, it has a flavor profile similar to Foursquare rums.
Other American rum distillers using new American oak include Louisiana’s Oxbow. They make both cane juice and molasses expressions—fun to try side-by-side! Georgia’s Richland Rum has been making rum for over two decades and is known for its bourbon-like profile, resulting from using new American oak.
The above list of next-step options is admittedly incomplete, and I’m intentionally not mentioning some of my favorite rums. Many aren’t what I’d consider easy stepping stones.
Barbados rum is often called a gateway rum for bourbon drinkers. Some who cross over may choose not to wander further afield, while others soon find themselves chasing down the most exotic, weird and wild rums the category contains. Either way, more drinkers appreciating rum as a world-class spirit equal in stature to the finest whiskies and brandies helps elevate the category.
5 websites to pay over $50K for illegally shipping alcohol to Tennesseans
Staff – 05/30/2024 – Yahoo.com
Source: https://www.yahoo.com/
Five online liquor stores have agreed to pay penalties totaling over $50,000 for illegally shipping alcohol to Tennesseans without proper licensing.
A federal court recently approved the settlement, which includes injunctive relief and $58,320 in civil penalties. According to the Tennessee Alcoholic Beverage Commission (TABC), the case is the first successful prosecution in the state using the Twenty First Amendment Enforcement Act.
“These penalties mark a significant step in our efforts to halt illegal online alcohol distribution and ensure compliance with legal and safety standards. Businesses selling alcohol without a license in Tennessee should expect severe penalties. We are committed to ensuring public safety and upholding state laws,” said Russell F. Thomas, Director of the TABC.
So far, Tennessee, Michigan and Ohio are the only states that have prosecuted under the Twenty First Amendment Enforcement Act, which allows state attorneys general to seek injunctive relief against illegal alcohol imports.
The Act was passed by federal lawmakers in October 2000 in order to ensure states have the course of action they need to enforce their alcohol laws against out-of-state companies.
Many of the companies involved in the settlement had been illegally shipping distilled spirits to Tennesseans for some time, according to the state attorney general’s office.
During separate investigations, undercover agents from the TABC said they were able to purchase distilled spirits from all five of the companies, including My Bev Store, Prime Time, Wooden Cork, The Liquor Bros and Bottle Buzz.
The companies shipped the spirits to Tennessee addresses, but none of them had a license from the TABC, which is required to ship liquor directly to consumers from outside the state.
Despite being warned that the sales violated Tennessee law, officials said each company continued to illegally ship distilled spirits directly to residents.
Attorney General Jonathan Skrmetti initiated the civil enforcement action on July 14, 2023, in order to immediately stop “the flow of illegal liquor shipments.” In addition to civil penalties, the companies have all agreed to cease illegal shipping and acknowledged their violations.
“This injunction is a significant step in our ongoing efforts to combat illegal alcohol distribution by enforcing Tennessee licensure laws,” Thomas said. “These are the same laws that prevent minors from obtaining alcohol, ensure that taxes are paid, and that keep counterfeit alcohol products off the market. I thank General Skrmetti and his team for their excellent work.”
A second wind for third-party distillers (Excerpt)
Tom Bruce-Gardyne – 05/29/2024 – The Spirits Business
The landscape for third-party distillers is a challenging one, with brands facing rising costs. But producers are bullish.
*This feature was originally published in the March 2024 issue of The Spirits Business magazine.
By their very nature, many third-party spirits suppliers have a ringside seat to see what is really happening in the market. That is certainly true of John Teeling, founder and chairman of the Great Northern Distillery in Dundalk – the second-largest distilling complex in Ireland.
On the site of a former brewery that was home to Harp lager, there is a grain distillery with column stills, and a malt distillery with nine pot stills. “This year we’re hoping to distil eight million litres of pure alcohol (lpa) of malt, and 12m lpa of grain,” says Teeling.
Golden Moon Distillery closes down (Excerpt)
Nicola Carruthers – 05/29/2024 – The Spirits Business
Colorado’s Golden Moon Distillery has ceased operations after it was unable to find a suitable buyer for the business.
At the end of 2023, the owner of Golden Moon Distillery, Stephen Gould, revealed he was seeking a buyer for part or all of his business. The company was put up for sale after being “negatively affected” by challenges in the past few years, including the pandemic, the war in Ukraine and political issues.
Finally, a Cure for Drunken Mice! Oh, and Maybe Humans (Additional Coverage)
This could end the racket from the pantry, or from frat boys on a bender
Staff – 06/03/2024 – WSJ
In a truly jaw-dropping development, scientists from top universities ETH Zurich and Stanford have developed a gel made from milk and iron that prevents mice from getting drunk too quickly. What’s more, the gel seems to help the rodents quickly shake off the effects of hangovers.
The news, just published in the esteemed journal Nature Nanotechnology, could not come at a better time. It’s no secret that a lot of us have been waiting a long time for a breakthrough like this. Chronic juicing among mice has been a steadily growing problem for years, as anyone who constantly is awakened in the middle of the night by the sound of inebriated mice out in the kitchen will tell you.
Once mice get a few jolts in them, they have a tendency to carom about wildly, knocking over priceless enamel figurines and irreplaceable family keepsakes, leaving a mess for everyone. Worse, homeowner’s insurance usually won’t cover the depredations of marauding mice.
Sometimes, all this liquored-up reeling and careening can set off fire alarms while homeowners are on vacation. This infuriates volunteer firefighters, who constantly get called out on false alarms in the middle of the night. Not because of a space heater someone forgot to turn off. Not because of faulty electrical wiring. Nope. Hammered mice running amok. Third time this month.
And then there’s the racket the rodents make while cavorting in the pantry, sounding like they are regaling each other with squeaking versions of popular drinking songs. The high-pitched sounds drive dogs completely nuts. Cats get freaked out because the drunken mice tend to travel in packs like over-liquored frat boys, staggering around in an unpredictable yet menacing fashion.
Drunken mice fall asleep in unusual places like the fruit basket, creating unpleasant surprises for little kids looking for an apple or banana. Make no mistake: The mouse as lush is one of the great untold scientific stories of this era.
What is the ultimate goal of the scientists conducting this offbeat research? Obviously, they did not concoct their miracle elixir merely to alleviate the problems posed by tippling vermin.
No, if the gel works in tests conducted on humans, they believe it could be used not only to prevent hangovers but even to mitigate the damage caused by chronic drinking. This would mean that carousing businessmen and businesswomen could report for important meetings in the morning all bright-eyed and bushy-tailed, not showing the slightest aftereffects of having closed the bar the night before. Baseball players scheduled to play afternoon games after a 13-inning barnburner the previous evening will be sure to stock up on the magic formula.
But those developments lie far, far down the road, as it is not uncommon for scientists to find that lab results generated by experiments on mice are difficult to duplicate in humans. Meanwhile, scientists might want to try out the miracle gel on chimps, pumas and killer whales, all of whom can get way out if hand once they start hitting the sauce.
So many possible benefits! This is one of those instances where scientists roll up their sleeves and really make discoveries that can help the world in a direct way instead of trying to figure out whether salmon can count and how smart dinosaurs were.
Keep up the good work, guys! We’re all raising a glass to you—or if things work out, maybe a few.
India: United Spirits (UNSP.BO): What’s New from Citi Pan-Asia Conference
Staff – 06/03/2024 - CITI
CITI'S TAKE
We hosted United Spirits at Citi's Pan-Asia Conference 2024. Key takeaways – (a) demand environment at the lower-end remains soft; (b) near-term growth could be muted off a high base; mgmt. maintains their guidance of double-digit growth in FY25E; (c) premiumization continues to be the key focus area for United Spirits; (d) headline pricing could be lower in FY25E as inflation moderates and on a high base (two years of strong pricing); (e) mgmt. aims to drive profitability improvement through a combination of pricing, premiumization, revenue growth management and further productivity improvement. We remain positive on UNSP's medium-term growth prospects; however, at 56x 1-year forward consensus P/E, potential upsides appear priced in. Maintain Neutral.
Demand outlook – Management reiterated that demand trends at the lower-end of their portfolio, (partly Popular and Lower Prestige) remain soft. Given the slightly muted demand and the high base (P&A revenue grew 16% in 1HFY24 and 8% in 2HFY24), revenue growth could remain moderate near term, before improving in 2HFY25. Management maintained their guidance of 10%+ revenue growth for FY25E.
Premiumization is the key focus area – Mgmt. highlighted multiple premiumization opportunities and initiatives being undertaken. Prestige & Above continues to be the key growth driver, with 89% revenue salience as of FY24. Even within P&A, we note rising salience of mid prestige, upper prestige, luxury & premium categories on the back of multiple innovation and renovation initiatives. The third key driver for premiumization is the extension/introduction of new categories such as tequila which are more premium positioned.
Brand extensions to more premium variants – United Spirits has successfully extended its strong brands into premium variants. Key examples include (a) Royal Challenge (positioned in Mid Prestige) extended to Royal Challenge American Pride (Upper Prestige) – contributed 8% to RC trademark sales in FY24; (b) Black Dog Gold Reserve label contributed 40% of Black Dog sales in FY24; (c) Johnnie Walker Blonde contributed to 7% of Johnnie Walker brand sales in FY24 (share of Johnnie Walker Black and above labels remained intact since launch of Blonde). More recently, the company has extended its largest selling brand, McDowell’s, into white spirits (X Series – range of rum, gin and vodka) and single malt whisky. We would watch out for the progress here, especially the X Series launch – which could help drive company sales in the fast-growing vodka market.
Headline pricing expectations – UNSP received strong headline price increases over the past two years on the back of high input cost inflation. Going ahead, as the inflationary situations seems to be moderating (glass prices are stable, ENA still inflationary though), headline pricing in FY25E is likely to moderate.
Margin drivers and outlook – Management reiterated their aspiration of mid-to-high teen EBITDA margin over the medium term and their focus on improving profitability. The key drivers include headline pricing, premiumization benefits, revenue growth management (includes improvements in trade promotions) and sustained productivity improvement (including the supply chain agility program) which likely offsets the inflation. In terms of the supply chain agility program, UNSP has achieved 40% of the annualized targeted benefits as of FY24 – expects to reach 100% in another 3 years.
New York: Opponents launch ad campaign to fight direct alcohol shipment bill as session nears end
Staff – 06/03/2024 – Spectrum Local News
A coalition of small businesses and wholesalers in New York's alcohol supply chain quietly launched an ad campaign Thursday in a last-ditch effort to defeat legislation to permit direct shipments of craft alcoholic beverages to consumers.
Lawmakers, farmers and craft beverage distillers have fought hard to expand the alcoholic beverages that can be directly shipped to New York consumers — an update they say is long overdue for New York's alcohol shipping laws that date back to the Prohibition Era. A bill to permit cideries, distilleries and other small beverage producers to directly ship products to customers, like wineries, has gained traction in recent weeks.
But an ad campaign from the Coalition For Responsible Alcohol Laws zeroes in on concerns expanding the direct shipment of alcoholic beverages to customers would increase underage drinking and related crimes.
A video advertisement plays on the coalition's website warning the legislation is dangerous.
"Direct alcohol shipping will endanger New York’s children, threaten public health, reduce state revenues and put mom and pop shops out of business," a narrator says in the ad.
The legislation requires an adult's signature when alcoholic beverages are delivered. Lawmakers in favor of the bill argue the direct shipment of wine in the state, which has been legal for 20 years, has not led to an uptick in underage drinking.
Liquor store distributors have also sent flyers to local shops, or their members, warning against Amazon's intent to monopolize the direct shipment of alcohol to customers and how it could impact small businesses.
The coalition's campaign is a significant digital buy, according to a source involved with the effort.
However, New York state business leaders support the bill and argue it would boost small businesses in the industry. Several distillery and cidery owners who have lobbied for the bill in Albany this session, have said they fear they'll be forced to close in the next year without the additional market for farm beverage producers.
Bill sponsors Sen. James Skoufis and Assemblywoman Donna Lupardo, both Democrats, have brushed off opponents' concerns they say are rooted in ?misinformation to prevent small businesses from cutting into their profits.
“Unfortunately, opponents have advanced lies in an attempt to scare legislators about underage drinking," Skoufis and Lupardo said in a joint statement last week. "Their interests obviously revolve around maintaining their hold on the market and growing their profits."
"Wineries were granted the authorization to ship nearly two decades ago and, more recently, liquor stores have availed themselves of e-commerce apps such as ReserveBar and Drizly in order to deliver their products," the bill sponsors said.
The lawmakers pointed out distilleries and cideries were temporary allowed to ship during the pandemic, which they say resulted in no significant challenges or problems.
“As legislators, we have concluded there are two paths we can travel down," Skoufis and Lupardo said. "We can either provide parity for our struggling distilleries and cideries or re-examine the direct to consumer shipping opportunities currently provided altogether. We doubt the consumers who overwhelmingly support direct to consumer shipping would welcome curtailing their current opportunities."
United Kingdom: The economics of the great British booze market – do we pay to play?
Nick Gillett – 06/03/2024 – Harpers.co.uk
The UK spirits market, to many global producers, is one they want to be part of. It’s not the biggest by any means, nor is it the most fruitful – but there is an air of prestige about it. And yet many independent producers trying to break into the UK market, will struggle or worse, fail miserably. It’s a tough nut to crack but by understanding the nuances of the market, you’ll be better equipped to tackle the challenge – and hopefully reap a bit of great British success.
Get to know the competition
The first vital thing to understand about the UK spirits market (particularly in the current climate) is that it’s dominated by conglomerates. The top four spirits companies in the UK generate more than 70% of the revenue.
To understand why this matters, we need to look at the structure of UK retail. The largest off-trade channels for spirits are four or five national supermarket chains, in addition to one national specialist retailer of wine and spirits. As it stands, we’ve seen a prolonged and steady increase in the cost of goods over the past few years, which means tight margins for grocery. This in turn means that supermarkets are pickier about their supplier lists – and the result for spirits producers is that the hoops you must jump through to reach the elusive shelf are numerous and costly.
And once you hit the shelf, the pressure’s on you to support sales. You’re not just competing with other booze bottles – you’re competing with every other category in that supermarket. And that’s where price promotion and the strength of your marketing come to the fore to shift that bottle into the customer’s basket.
Now let’s take it back to the conglomerates. Those supplier relationships already exist with the supermarkets. They’ve proven time and time again that they can shift bottles, they have the economies of scale to stock at a national level, and they have the money to throw at marketing campaigns and access the very best spots and listings.
On an international level, these can shift lines of budget from one national market to another, in line with changing priorities – and that’s something most independent brands can’t do.
It’s absolutely possible to compete with them – but all of the above just means you need to be on your A-Game to do so.
The degree of ‘pay to play’
So, we’ve touched upon the economics of selling through supermarkets, but what other parts of the UK spirits market are requiring more ‘pay to play’?
Looking at the on-trade – hospitality has been hit hard. Many venues are trying to recoup some of these losses by increasing prices, and that also stands for the charges associated with branded cocktail listings and other ways you can promote your spirit in the on-trade.
When it comes to promotion, advertising and marketing are costly here – because it’s so competitive. Employee costs are higher so when you bring in expertise to help you grow and scale – it’s another bill to add to your list.
On top of that, there’s the complex and resource-draining legislative and duty systems that exist here in the UK. Without boring you with too much detail, you have four nations in one ‘country’, each with its own rules around spirits sales. We have a physical border to the EU, in Ireland, and therefore more protocol and bureaucracy to be followed when exporting to Northern Ireland (although this has been made marginally easier through the Windsor Framework). Producers currently need a UK duty stamp (which is thankfully being wound down at some point in the near future), and to adhere to rules around labelling – all of which cost money, and that cost is high if you’re not selling a significant number of bottles.
In other countries around the world, the system is a lot easier and far more ‘pro-business’. But beyond the complex system for selling in the UK, by far the biggest restriction on cash is the duty system.
We all know the phrase cash is king – meaning businesses need to keep a close eye on cash flow. Here in the UK, you pay your duty upfront. And for every litre of alcohol sold in a spirit of 22% ABV or above, that’s ￡31.642. If you’re selling lots of bottles, that’s a lot of cash to pay upfront before your invoices are paid, however many months later. And that leads us nicely to…
The staggering sum behind the bottle
So, what do these producers who are pouring their creativity and soul into litres of liquid make from each bottle they so carefully crafted?
Let’s take an average, premium bottle of whisky at 40% ABV. Let’s say it sells at a price point of ￡36.99 - who makes what off of that bottle?
We’ll start from the top. The government, between VAT and alcohol duty, will take somewhere around ￡17 of that. Of the remaining ￡20, the retailer selling it will take around ￡10, leaving ￡10 to cover everyone else in the distribution channel. The actual producer takes their production costs off the remaining ￡7 or ￡8 to leave a small profit per bottle of ￡3 or ￡4. That scenario might vary wildly from brand to brand, but it’s not an unrealistic picture. But it does mean that to generate a return on your investment in the UK spirits market – you have to sell a lot of bottles.
It's not all doom and gloom
Yes – the numbers might seem to stack up against the independents, but there are some remarkable brands out there bucking the trends, securing prime supermarket slots, or even carving their path outside of grocery.
To achieve the same success, I say keep your finger on the pulse of the consumer. See what they want, give them quality, invest in your marketing and driving awareness, but also stay hot on your commercial awareness. If you can, get yourself a quality distributor; many of them will pay your duty and recoup the costs from you – which eases cash flow, and the great ones will also support you on customs, and warehousing through their resources or partners. This will be a huge help.
If you’re bottling here in the UK, to sell in the UK – you’ve got great options too as there’s some really good suppliers out there and it’s good for the old sustainability creds.
There are lots of positives but the biggest thing about the UK spirits market are the consumers. They’re discerning, they respect quality and right now they’re on a journey of discovery so there’s plenty of opportunity for challenger brands. Yes, it might be a difficult market to master – but once you’ve put the effort in, I doubt you’ll find any as rewarding, anywhere else in the world.
Alabama: Alabama mixed spirits expansion faces continued hurdles amid industry disagreements
Staff – 06/02/2024 - Alabama Daily News
An ongoing effort to expand the availability of ready-to-drink mixed spirits in Alabama continues to face obstacles over industry disagreements on franchise laws, disputes that some say may be irreconcilable.
The first significant effort to expand the availability of RTD spirits came in 2023 in the form of Senate Bill 194, sponsored by Sen. Steve Livingston, R-Scottsboro. The bill would have permitted RTD spirits with an alcohol by volume of up to 12.5% to be sold anywhere that beer and wine are sold, such as at grocery and convenience stores.
While that effort ultimately failed, a similar bill was filed in 2024, this time by Sen. Bobby Singleton, D-Greensboro, and with changes to address some concerns previously expressed about the bill, such as reducing the ABV cap on RTD spirits from 12.5% to 8%.
Even with the included changes, that version of the bill failed too, though this time, according to Livingston, due mostly to franchise language included in the bill.
In both versions of the bill, language is included that mandates manufacturers of RTD spirits designate geographic areas as "sales territories," and that they must enter into exclusive franchise agreements with a licensed wholesaler for each sales territory.
Beer distributors largely supported the franchise language; the Alabama Grocers Association, which supports the legislation, remains neutral on the franchise component. The Alabama Beverage Association, however, remains strongly opposed to such language, and instead has advocated against the inclusion of any language that would limit distributors by geographical locations.
"We have a very hard line that's drawn between the alcohol distributors and the soft drink (distributors)," Livingston told Alabama Daily News Thursday.
"Buffalo Rock and Coca-Cola United, both (of which) want to be in the business, they want the business to be handled via contracts, whereas the other folks want franchise agreements in place. Until that issue is solved, I really don't see it moving anywhere."
Livingston said that he still hoped the differences between the parties could be reconciled, and that while he did not yet have any plans to reintroduce the bill, he was still in support of expanding the availability of RTD spirits.
"I believe there is consumer demand, that it ought to be in place," he said. "I don't know how it moves until those two groups come together in some capacity and make an agreement, because they are both very powerful groups."
Virginia Banister, executive director of the ABA, said that her industry was strongly in support of expanding the availability of RTD spirits. Any such bill that includes franchise language, however, was still a non-starter.
"Our beverage industry - and that's all of the Coke and Pepsi bottlers in the state of Alabama - we support the sale of these mixed-spirit beverages in grocery stores, convenience stores; we always have, they're our customers," Banister told ADN Thursday.
"We don't wish to change the franchise laws that apply to beer and wine, but they are not necessary for the sale of mixed-spirit beverages."
Banister argued that franchise laws introduced unnecessary barriers and restrictions on the ability of distributors to compete "fairly in a free market place," and that it was a "business principle" for her organization to oppose such restrictions.
"I understand that they fought very hard a long time ago to get these franchise laws passed, and they're protectionists; I can understand why they'd want franchise laws on everything," Banister said.
"Franchise laws protect one interest, and one interest alone; if a bill were not to have franchise laws in it, then it would benefit everyone."
Donna Alexander, executive director of the Alabama Wholesale Beer Association, which represents beer distributors in the state, said that franchise language remained important to beer and wine distributors due to the regulatory oversight they provide.
"(The importance of franchise language) has to do with the regulatory system that we've had for the last 50 years and continue to have, and it strikes a balance with temperance on the product," Alexander told ADN Friday.
"It allows all the small market players of beer and wine to get to market in a sensible way, and the soft drink players just don't have to do that, they own their products, so I get why they're not interested."
Alexander said that even though the latest iteration of the proposal to expand the availability of RTD spirits included franchise language, the AWBA still held several reservations, including the reduced ABV of 8%, and therefore did not endorse the bill outright.
Still, Alexander said it was not impossible that beer distributors and the ABA could reach some sort of agreement or compromise when it came to the inclusion of franchise language.
"Franchise is a major part, but I'm not going to say that they might not come up with something that could be worked with," she said.
Other leaders in industries with a vested interest in expanding the availability of RTD spirits expressed more optimism that a compromise could still be reached, including Bart Fletcher, president of the trade association Petroleum & Convenience Marketers of Alabama.
"Our hope is that some sort of RTD legislation will be introduced next year, we certainly continue to have a desire to be able to sell those products to consumers through grocery and convenience stores," Fletcher told ADN Thursday.
"I know that the major push back came on the wholesaler side of the issue, so we will be speaking with our friends in the beverage industry over the course of the political off season here to encourage them to try to find some sort of language that's acceptable to everyone in the wholesale class of trade."
Ellie Taylor, CEO and president of the Alabama Grocers Association, also remained optimistic that a compromise could be reached.
"We actually have members in our association on both sides of this issue, and we're very hopeful that these two sides can get together and figure out some type of compromise," Taylor told ADN Thursday.
"We have commitments from both sides to come to the table to compromise, and so we're hopeful that that can happen."
The RTD spirit market is poised to reach $21.1 billion in value in the United States by 2027, and is currently the fastest-growing category of adult beverages in the country.
The latest proposal to expand RTD spirit availability in Alabama would have taxed them at a rate of $.68 per 12 ounces, much higher than the $.05 tax on beer. Given the potential new revenue source, meeting consumer demand and pressure from retailers, lawmakers are likely to find themselves in similar debates next year.
Whether lawmakers are willing to strip any such proposal of franchise language remains to be seen, and at least for now, remains uncertain.
Until the next newsletter!
Federico Hernández - The Rum Lab
Regional Marketing Supervisor APAC & China Brand Ambassador
5 个月Grande Karen Alvarez Seijas ?? ?? !!