RUM SALES SLOW TO 2.8%

While we all know that the vodka category is currently the number one reigning spirits, rum and cordials are tied for second place according to food, drug and liquor scan data from the Nielsen Company.

Nevertheless, spirits growth is slowing and analysts say it will continue to slow in the coming years. Nielsen data shows that in the 52 weeks to April 2006, overall spirits sales grew 8.4%, but in the 52 weeks to April 2007 spirits was up only 2.9%. The same slowing trend also goes for rum.

While still growing, rum’s dollar volume growth has also dwindled from last year. In April 2006, rum sales increased 11%, but in April 2007 rum slowed to 2.8%, about the same level as the total spirits category. When it comes to flavored rums, spiced/coconut was the driver of growth (up 7.1% in April 2007). Nielsen points out that while other flavored rums contributed significantly to overall category spending, they are not performing as well as spiced rum.

Along with flavored rums, growth is also led by premium and ultra-premium brands. Rum brands priced between $7.00 - $12.99 created the most dollar volume for the category in April 2007. But like all other categories, high-end rum brands continued to grow from 2006 while value rum was down -2.8% in April 2007.