This is from a
report that surfaced recently, It looks
like it is time for the rum sector to buckle down and work on it image and get
some guidelines in place so the people purchasing rum truly know what they are
buying and expect more rather than less from the sector.
“The global
rum market is set to face a tough future, according to joint research from
just-drinks and The IWSR, with volumes expected to slide over the next five
years.” The Global Rum Insights report
has forecast a compound annual drop of 0.5% between 2016 and 2021, representing
a decline of almost 3.7m cases. The rum segment's top three markets - India,
the US and the Philippines - are all expected to record falls. The predicted five-year dip follows a
decline of 0.8% in 2015 to 141.8m nine-liter cases, with nine of the top 20
markets and four of the top five registering declines.
Read More at http://www.just-drinks.com/news/rum-sector-braced-for-falling-volumes-in-years-ahead-research_id122393.aspx
Nine of the top 20 markets fell in 2015,
including four out of the top five. Virtually all of those in growth are in low
single digits. Rum’s trajectory is one
of gentle decline and not overly dynamic, at least when viewed from a top-line
vantage point.
One of the biggest issues for rum lies in
the fact that it’s basis is value-priced brands which only account for a
further 39.1% of sales, meaning that almost 60% of total category sales are
value or low-priced expressions. This
has implications for brand building, particularly premium brand building. In
much of the world, rum has a relatively low image and is viewed as a commodity
product rather that a product of quality.
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