The world largest supplier of aged rum is
cutting back on it production of bulk rum.
This will be a blow to a number of rum producers that do not have
distilling capabilities on their premise.
There has been a trend for many of the smaller and even some of the
larger islands in the Caribbean to abandon distilling for sourcing of their rum
from suppliers like Angostura.
Angostura has reduced its “third party”
rum production after a project to upgrade its wastewater facilities “didn’t
work out as well as they had hoped”, according to the group’s Genevieve Jodhan,
the new CEO. In an interview with The Spirits Business, Genevieve
Jodhan confirmed that Trinidad and Tobago-based Angostura made a “strategic
decision” in the third quarter of 2016 to reduce bulk rum distilling after work
on its wastewater treatment plant ran into difficulty. We started to scope out and ask, how can we
produce our products responsibly? We realized that we needed to cut back
production and make some changes,” according to Jodhan. “That
led us to look at the entire business model to see where we want to be, then
reposition the company for the future.”
Angostura has maintained some key supply contracts, but will reserve
greater distilling capacity for its own brands.
This change in production
strategy has also allowed Angostura to speed up its premium trajectory, by
focusing more on value than volume. The
industry-wide premiumization trend in rum: “We don’t just think it
will happen, we intend to make it happen.”
“The future of rum lies
in all categories, and mainstream rums are here to stay.” Consumption is changed by occasion, by
lifestyle, and the consumer’s stage of life. “I do not think there will ever be a time when
rum is out of reach for the average consumer”.
“But there is an untapped market at the top end that is wide open, and I
think rum will continue to push into areas once reserved for whisky.”
This is a very
interesting approach to the issue. I
have to agree with Genevieve Jodhan that there is a place for all of the levels
of rum. There is a demand for the
premium expressions that is growing rapidly at this time, but likewise the
entry level is you will, expressions have a place in the process to lead
consumers to enjoy the more sophisticated expressions as they grow older and
their tastes and budgets allow them to enjoy some of the better quality things
in their lives.
Read More at https://www.thespiritsbusiness.com/2017/07/angostura-reduces-bulk-rum-production/
