Global market review of Rum Forecast to 2017 2013 edition SAMPLE
Global market review of Rum forecasts to 2017 2013 Edition - SAMPLE By IWSR editor-in-chief, Alexander Smith May 2013 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0)1527 573 604 Fax: +44 (0)1527 577 423 Web: www.just-drinks.com/market-research/ Registered in England no: 4307068 i
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Table of contents Table of contents... iv List of tables... vi Executive summary... 1 Chapter 1 Scope of the market and recent performance... 3 Prospect for geographic expansion... 7 Diverse category... 7 Imports... 8 Premiumisation trends... Error! Bookmark not defined. Industry structure... Error! Bookmark not defined. Chapter 2 Leading brands... Error! Bookmark not defined. Bacardi... Error! Bookmark not defined. Captain Morgan... Error! Bookmark not defined. Brugal... Error! Bookmark not defined. Havana Club... Error! Bookmark not defined. Barceló... Error! Bookmark not defined. Appleton... Error! Bookmark not defined. Negrita... Error! Bookmark not defined. Flor de Caña... Error! Bookmark not defined. Botran... Error! Bookmark not defined. Ron Zacapa... Error! Bookmark not defined. Chapter 3 Trends... Error! Bookmark not defined. Cocktails... Error! Bookmark not defined. Flavour innovation... Error! Bookmark not defined. Coca-Cola tie-in... Error! Bookmark not defined. Bacardi versus Captain Morgan... Error! Bookmark not defined. Ageing debate... Error! Bookmark not defined. Importance of provenance... Error! Bookmark not defined. Chapter 4 Leading markets... Error! Bookmark not defined. Europe... Error! Bookmark not defined. Spain... Error! Bookmark not defined. France... Error! Bookmark not defined. The UK... Error! Bookmark not defined. Germany... Error! Bookmark not defined. Scandinavia... Error! Bookmark not defined. Italy... Error! Bookmark not defined. Russia... Error! Bookmark not defined. The Netherlands... Error! Bookmark not defined. Austria... Error! Bookmark not defined. Ireland... Error! Bookmark not defined. The Americas region... Error! Bookmark not defined. iv
The US... Error! Bookmark not defined. Canada... Error! Bookmark not defined. Mexico... Error! Bookmark not defined. Dominican Republic... Error! Bookmark not defined. Venezuala... Error! Bookmark not defined. Chile... Error! Bookmark not defined. Cuba... Error! Bookmark not defined. Brazil... Error! Bookmark not defined. Asia-Pacific... Error! Bookmark not defined. India... Error! Bookmark not defined. Australia... Error! Bookmark not defined. China... Error! Bookmark not defined. Rest of the world... Error! Bookmark not defined. South Africa... Error! Bookmark not defined. Travel retail... Error! Bookmark not defined. v
List of tables Table 1: Global rum volume consumption by major and minor region, 2006-2011 (000 s nine-litre cases)... 5 Table 2: Global top 20 rum markets volume consumption, 2006-2017 (000 s nine-litre cases)... 6 Table 3: Global rum volume consumption by type, 2006-2017 (000 s nine-litre cases)... 7 Table 4: Global top 10 imported rum markets volume consumption, 2006-2017 (000 s nine-litre cases)...8 Table 5: Global top 10 imported rum markets value, 2006-2011 (000 s US dollars)... 9 Table 6: Global top 20 rum markets showing percentage share of imported rum, 2006-2017 (000 s nine-litre cases)... 9 Table 7: Global rum volume consumption by quality, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 8: Global top 10 premium-and-above rum markets volume, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 9: Global top 20 rum markets showing percentage share of premium-and-above rum, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 10: Global top 10 super-premium rum markets volume, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 11: Global top 10 super-premium rum brands volume, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 12: Global top 10 rum companies volume, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 13: Global top 10 markets for Bacardi rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 14: Global top 10 markets for Captain Morgan rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 15: Global top 10 markets for Brugal rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 16: Global top 10 markets for Havana Club rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 17: Global top 10 markets for Barcelo rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 18: Global top 10 markets for Appleton rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 19: Global top 10 markets for Negrita rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 20: Global top 10 markets for Flor de Cana rum, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 21: Top 10 rum markets in Europe, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 22: Top 10 rum brands volume in Spain, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 23: Global rum volume consumption by type in Spain, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 24: Global rum volume consumption by quality in Spain, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 25: Top five premium-and-above rum brands volume in Spain, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 26: Top 10 rum brands volume in France, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 27: Global rum volume consumption by type in France, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 28: Global rum volume consumption by quality in France, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 29: Top 5 premium and above rum brands volume in France, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 30: Top 10 rum brands volume in the UK, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 31: Global rum volume consumption by type in the UK, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 32: Global rum volume consumption by quality in the UK, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 33: Top five premium-and-above rum brands volume in the UK, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 34: Top 10 rum brands volume in Germany, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 35: Global rum volume consumption by type in Germany, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 36: Global rum volume consumption by quality in Germany, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 37: Top five premium-and-above rum brands volume in Germany, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 38: Top 10 rum brands volume in the Nordics, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 39: Global rum volume consumption by type in the Nordics, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 40: Global rum volume consumption by quality in the Nordics, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. vi
Table 41: Top five premium-and-above rum brands volume in the Nordics, 2006-2011 (000 s nine-litre cases). Error! Bookmark not defined. Table 42: Top 10 rum brands volume in Italy, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 43: Global rum volume consumption by type in Italy, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 44: Global rum volume consumption by quality in Italy, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 45: Top five premium-and-above rum brands volume in Italy, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 46: Top 10 rum brands volume in Russia, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 47: Global rum volume consumption by type in Russia, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 48: Global rum volume consumption by quality in Russia, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 49: Top five premium-and-above rum brands volume in Russia, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 50: Top 10 rum brands volume in Netherlands, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 51: Global rum volume consumption by type in Netherlands, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 52: Global rum volume consumption by quality in Netherlands, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 53: Top five premium-and-above rum brands volume in Netherlands, 2006-2011 (000 s nine-litre cases) Error! Bookmark not defined. Table 54: Top 10 rum brands volume in Austria, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 55: Global rum volume consumption by type in Austria, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 56: Global rum volume consumption by quality in Austria, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 57: Top five premium-and-above rum brands volume in Austria, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 58: Top 10 rum brands volume in Ireland, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 59: Global rum volume consumption by type in Ireland, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 60: Global rum volume consumption by quality in Ireland, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 61: Top five premium-and-above rum brands volume in Ireland, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 62: Top 10 rum markets in Americas, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 63: Top 10 rum brands volume in the US, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 64: Global rum volume consumption by type in the US, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 65: Global rum volume consumption by quality in the US, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 66: Top five premium-and-above rum brands volume in the US, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 67: Top 10 rum brands volume in Canada, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 68: Global rum volume consumption by type in Canada, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 69: Global rum volume consumption by quality in Canada, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 70: Top five premium-and-above rum brands volume in Canada, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 71: Top 10 rum brands volume in Mexico, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 72: Global rum volume consumption by type in Mexico, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 73: Global rum volume consumption by quality in Mexico, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 74: Top five premium-and-above rum brands volume in Mexico, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 75: Top 10 rum brands volume in Dominican Republic, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 76: Global rum volume consumption by type in Dominican Republic, 2006-2017 (000 s nine-litre cases) Error! Bookmark not defined. Table 77: Global rum volume consumption by quality in Dominican Republic, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 78: Top five premium-and-above rum brands volume in Dominican Republic, 2006-2011 (000 s nine-litre cases). Error! Bookmark not defined. Table 79: Top 10 rum brands volume in Venezuela, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 80: Global rum volume consumption by type in Venezuela, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 81: Global rum volume consumption by quality in Venezuela, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 82: Top five premium-and-above rum brands volume in Venezuela, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 83: Top 10 rum brands volume in Chile, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. vii
Table 84: Global rum volume consumption by type in Chile, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 85: Global rum volume consumption by quality in Chile, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 86: Top five premium-and-above rum brands volume in Chile, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 87: Top 10 rum brands volume in Cuba, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 88: Global rum volume consumption by type in Cuba, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 89: Global rum volume consumption by quality in Cuba, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 90: Top five premium-and-above rum brands volume in Cuba, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 91: Top 10 rum brands volume in Brazil, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 92: Global rum volume consumption by type in Brazil, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 93: Global rum volume consumption by quality in Brazil, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 94: Top five premium-and-above rum brands volume in Brazil, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 95: Top 10 rum markets in Asia Pacific, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 96: Top 10 rum brands volume in India, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 97: Global rum volume consumption by type in India, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 98: Global rum volume consumption by quality in India, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 99: Top 10 rum brands volume in Australia, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 100: Global rum volume consumption by type in Australia, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 101: Global rum volume consumption by quality in Australia, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 102: Top five premium-and-above rum brands volume in Australia, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 103: Top 10 rum brands volume in China, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 104: Global rum volume consumption by type in China, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 105: Global rum volume consumption by quality in China, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 106: Top five premium-and-above rum brands volume in China, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 107: Top 10 rum brands volume in South Africa, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 108: Global rum volume consumption by type in South Africa, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 109: Global rum volume consumption by quality in South Africa, 2006-2017 (000 s nine-litre cases)... Error! Bookmark not defined. Table 110: Top five premium-and-above rum brands volume in South Africa, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 111: Duty free/travel retail rum volume consumption by region, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 112: Duty free/travel retail rum volume consumption by type, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 113: Top 10 rum brands volume in duty free/travel retail consumption, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. Table 114: Duty free/travel retail rum volume consumption by quality, 2006-2011 (000 s nine-litre cases)... Error! Bookmark not defined. viii
Executive summary Rum is the sixth-largest global category at XXX.XXm nine-litre cases (domestic and duty free). A significant portion of that is derived from such low-priced markets as India, the Philippines and Cuba. Despite being predominantly a low price producer, India and certain producers in the Philippines (such as Tanduay) produces high quality rums. These rums could eventually find export success. Rum has enjoyed a very healthy X.X% compound annual growth rate (CAGR) between 2006 and 2011- the last years measured. The expectation is that rum continued this favourable trajectory in 2012 and the beginning of 2013. Rum has an enviable geographic spread with sizable volumes in India, North America, the Caribbean and Europe. There are a number of regions where it remains relatively underdeveloped, particularly in Central and Eastern Europe and the Balkans, the CIS, East Asia and the Middle East. The good news is that rum is growing at high rates in most of these underdeveloped regions. Viewed in terms of standard-and-above markets the US, Spain, Canada, the Dominican Republic and the UK comprise the top five largest markets. Standard-and-above rum increased by X.Xm cases between 2007 and 2011 to XX.Xm cases. This growth was led by Brazil, Germany, the Dominican Republic and Russia, in that order. The real strength of rum is its diversity, covering white, golden and dark styles. There are a number of other strands of this rum growth. The increasing general interest in flavours across all spirits categories has greatly benefited the flavoured and spiced rum market, opening up the category to a wider audience and drawing in a large number of new consumers. This spiced rum growth is led by Captain Morgan, which surpassed 10m cases worldwide in 2012. The number of new flavoured brands entering the market has significantly increased the range of choice available to consumers, which in turn has raised awareness of the category and has fuelled the growth of the market. For this reason, the popularity of spiced and flavoured rums is soaring, successfully attracting new consumers to the category and strengthening the market. Rum s suitability with Coca-Cola is another key driver. The leading international brands, Bacardi and Captain Morgan are widely consumed with Coca-Cola. The popular cuba libre cocktail, essentially rum and Coke with lime, is one of the most-ordered cocktails in the world. Global rum imports have steadily been rising, up by CAGR X.X% between 2006 and 2011 to reach a new high of XX.Xm cases (excluding duty free). The economically beleaguered Spanish market is easily the largest rum import market. 1
In much of the world rum only really began premiumising to any great extent over the past decade and its premium-and-above tiers are still relatively underdeveloped. To illustrate this, premium-and-above qualities amounted to about X.Xm cases in 2011, according to the IWSR. By comparison, premium-and-above vodka sales amounted to XXm cases and whisk(e)y XX.Xm cases. At the super-premium-and-above level the comparison is even less flattering. super-premium-and-above rum sales amounted to just XXX,XXX cases, compared with X.Xm for vodka and Xm for whisk(e)y. The issue of ageing in rum is a highly contentious area. There are no uniform standards and different producers and countries employ varying controls and regulations. This stands in contrast to other categories such as Scotch or Cognac where the ageing requirements are clearly defined. The other marketing issue is that rum tends to age faster than other spirits such as Scotch because of the warmer temperatures found in the Caribbean or Latin America. While this is advantageous in terms of financial outlay, it does mean that the use of age statements doesn t always carry the same impact as for Scotch whisky. Cocktail usage is driving rum s growth across a broad gamut of markets. As a sugar-based product, rum is readily mixable and the Caribbean is widely associated with cocktails such as the mojito and piña colada. Bartenders are no longer just using low-priced or standard white, but also aged and premium rums. Historically, rum was a particularly fragmented industry dominated by Caribbean, Central or South American producers. These producers were largely local, regional or national in scope, but few had the ambitions, resources or wherewithal to develop internationally. For a long time Bacardi was the only true international rum brand and that was initially based upon its strength in the US market. That is now changing due to greater participation by the major multinationals. Because rum hails from a broad diversity of markets it can also serve as an important point of differentiation. As consumers become more knowledgeable about the category they will seek out all these points of contrast. The fact that different islands have different production processes, the cultures, brand histories and even different styles of cocktail will all be real points of interest. 2
Chapter 1 Scope of the market and recent performance Chart 1: Global rum volume consumption, 2006-2017 (000 s nine-litre cases) Chart 1: Global rum volume consumption, 2006-2017 (000 s nine-litre cases) Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 Rum Chart 1: Global rum volume consumption, 2006-2017 (000 s nine-litre cases) (Continued) Rum Vol2012 Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 3
Chart 2: Global rum value, 2006-2011 (000 s US dollars) Chart 2: Global rum value, 2006-2011 (000 s US dollars) Rum USD Value 06 USD Value 07 USD Value 08 USD Value 09 USD Value 10 USD Value 11 4
Table 1: Global rum volume consumption by major and minor region, 2006-2011 (000 s nine-litre cases) Region Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 Vol2012 Asia Pacific Asia Australasia Americas North America Caribbean South America Central America Europe North West Europe Southern Europe Central Europe and Balkans Nordic Countries Eastern Europe and Baltics Africa & Middle East Africa Other Africa Middle East CIS Rest of World Table 1: Global rum volume consumption by major and minor region, 2006-2011 (000 s nine-litre cases) (Continued) Region Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 % Chg 10-11 CAGR 06-11 Share 11 Asia Pacific Asia Australasia Americas North America Caribbean South America Central America Europe North West Europe Southern Europe Central Europe and Balkans Nordic Countries Eastern Europe and Baltics Africa & Middle East Africa Other Africa Middle East CIS Rest of World 5
Table 2: Global top 20 rum markets volume consumption, 2006-2017 (000 s nine-litre cases) Country Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 Vol2012 India United States Philippines Cuba Spain Germany Dominican Republic Canada France Chile United Kingdom Brazil Mexico Colombia Czech Republic Venezuela Italy Australia Guatemala Others Table 2: Global top 20 rum markets volume consumption, 2006-2017 (000 s nine-litre cases) (Continued) Country Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 % Chg 10-11 CAGR 06-11 Share 11 India United States Philippines Cuba Spain Germany Dominican Republic Canada France Chile United Kingdom Brazil Mexico Colombia Czech Republic Venezuela Italy Australia Guatemala Others Rum is the sixth-largest global category at XXX.XXm nine-litre cases (domestic and duty free). Its share of the global spirits marketplace stood at X.X% in 2011, down marginally from its level X.X% share in 2007. Between 2006 and 2011, rum enjoyed a very strong X.X% compound annual growth rate (CAGR). 6
Most of this growth has been derived from India, the largest global market. Between 2007 and 2011, the Indian market added some XX.Xm cases, taking its global category share from XX% to XX.X%. The Philippines, the third-largest market, was also a big riser adding some X.Xm cases to XX.Xm cases. Fourth-ranked Cuba was relatively stable at Xm cases, following an increase of XXX,XXX over the five-year period. India, the Philippines and Cuba are all relatively low-priced markets. Viewed in terms of standard-and-above markets the US, Spain, Canada, the Dominican Republic and the UK comprise the top five. Standard-and-above rum increased by X.Xm cases between 2007 and 2011 to XX.Xm cases. Rum was the sixth fastest-growing category for standard-and-above brands in 2011, with increases in Brazil, Germany, the Dominican Republic and Russia, in that order. In both Germany and Brazil volume gains come largely from flavoured and especially spiced rums, while in the Dominican Republic, white rum is driving growth. Prospect for geographic expansion Rum has an enviable geographic spread with sizable volumes in India, North America, the Caribbean and Europe. There are a number of regions where it remains relatively underdeveloped, particularly in Central and Eastern Europe and the Balkans, the CIS, East Asia and the Middle East. The good news is that rum is growing at high rates in most of these underdeveloped regions. Rum had a 2006-2011 CAGR of XX% in the CIS, XX.X% in the Middle East, XX.X% in Eastern Europe and the Baltics and XX.X% in Scandinavia. It should be noted that these impressive growth rates are growing from relatively small bases. While rum seems to be making good progress in the CIS, perhaps the big question is will rum eventually penetrate the high-value East Asian markets. Further down the road, suppliers are optimistic that rum can play a significant role in the East Asian markets. Havana Club managing director Jérôme Cottin-Bizonne says: There is an appreciation of aged brown spirits such as Scotch and Cognac within these markets. We believe that this can lay the preconditions for the eventual growth of aged premium rums. Moreover, cocktail consumption in Asia is coming in. This will create another opportunity for rum. The future looks good. Diverse category Table 3: Global rum volume consumption by type, 2006-2017 (000 s nine-litre cases) Type Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 Vol2012 Dark Rum White Rum Flavoured Rum Other Rum Verschnitt 7
Table 3: Global rum volume consumption by type, 2006-2017 (000 s nine-litre cases) (Continued) Type Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 % Chg 10-11 CAGR 06-11 Share 11 Dark Rum White Rum Flavoured Rum Other Rum Verschnitt The real strength of rum is its diversity, covering white, golden and dark styles. There are a number of other strands of this rum growth. The increasing general interest in flavours across all spirits categories has greatly benefited the flavoured and spiced rum market, opening up the category to a wider audience and drawing in a large number of new consumers. The consumption occasion is equally diverse. It can be consumed as a cheap ingredient in cocktails or more sophisticated after-dinner sipping drink. It possesses both the energy of vodka or the discernment and connoisseurship of Scotch or Cognac. Rum hits all the notes. Imports Table 4: Global top 10 imported rum markets volume consumption, 2006-2017 (000 s nine-litre cases) Country Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 Vol2012 Spain France United Kingdom United States Germany Chile Italy Canada Mexico Others Table 4: Global top 10 imported rum markets volume consumption, 2006-2017 (000 s nine-litre cases) (Continued) Country Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 % Chg 10-11 CAGR 06-11 Share 11 Spain France United Kingdom United States Germany Chile Italy Canada Mexico Others 8
Table 5: Global top 10 imported rum markets value, 2006-2011 (000 s US dollars) Country USD Value 06 USD Value 07 USD Value 08 USD Value 09 USD Value 10 United Kingdom Spain United States France Germany Italy Canada Chile Russia Others Table 5: Global top 10 imported rum markets value, 2006-2011 (000 s US dollars) (Continued) Country USD Value 11 % Chg 10-11 CAGR 06-11 Share 11 United Kingdom Spain United States France Germany Italy Canada Chile Russia Others Table 6: Global top 20 rum markets showing percentage share of imported rum, 2006-2017 (000 s nine-litre cases) Country Vol2006 Vol2007 Vol2008 Vol2009 Vol2010 Vol2011 France Italy United Kingdom Spain Chile Germany Mexico Australia Canada United States Czech Republic Colombia Guatemala Venezuela Brazil Dominican Republic India Philippines Cuba Others 9
Table 6: Global top 20 rum markets showing percentage share of imported rum, 2006-2017 (000 s nine-litre cases) (Continued) Country Vol2012 Vol2013 Vol2014 Vol2015 Vol2016 Vol2017 France Italy United Kingdom Spain Chile Germany Mexico Australia Canada United States Czech Republic Colombia Guatemala Venezuela Brazil Dominican Republic India Philippines Cuba Others Global rum imports have steadily been rising, up by CAGR X.X% between 2006 and 2011 to reach a new high of XX.Xm cases (excluding duty free). Europe has four out of the top five importing markets: Spain (XX.X% share of global imports), France (XX.X%), the UK (XX.X%) and Germany (X.X%). Only the US, the fourth-largest import market, breaks into the top five. Until 2011, the Chilean rum market had been something of a sensation, growing at a rate of XX.X% CAGR between 2006 and 2010 and becoming the largest rum market in the region. Havana Club International (Pernod Ricard) marketing director Yves Schladenhaufen says: Chile is now a major rum market and Havana Club has really benefited from the switch from local to international spirits. There is a growing trend of globalisation in many developing countries and Havana Club has been benefiting from this global trend. While it is believed the Chilean market may have now reached saturation point, and many local brands have suffered volume losses, consumption of imported brands continues to grow strongly, increasing by X.X% from 2010 to 2011; many brands are still keeping a close eye on the market. 10