General Trends:
Sales Decline: For the year ending May 2024, rum sales in supermarkets show a decrease of 3.3% in volume and a slight drop of 0.4% in value, translating to a loss of 690,000 liters. This trend reflects a challenging economic environment impacting all spirits.
Average Quantity: Consumers buy an average of 3.7 liters of rum per years, compared to 10 liters for blended whiskies, indicating lower rum consumption.
Brand Performance:
Captain Morgan: The iconic rum brand is experiencing a decline with an 8.6% drop in volume and 6.4% in value. This decline is attributed to an aging target demographic and strong competition from rum from the French Overseas Departments and Regions (DROM). Imported rums have an average price of €19.53 per unit, while DROM rums are priced at €14.31.
Arranged Rums: Arranged rums are seeing strong growth with a 3.7% increase in value. They are the only segment showing gains in both volume and value, driven by brands like Rivière du Mât.
Aged Rum Segment:
Growth of Aged Rums: Aged rums are gaining renewed interest, particularly through more premium products. For example, HSE introduces an aged amber rum at €16 and a vintage rum under €30, aiming to exceed 2 million bottles sold and improve its market position.
Comparison with Single Malts:
Rum vs Single Malts: Premium and aged rum segments, such as Don Papa, total €165 million in revenue, representing 75% of single malt sales, which reach €220 million. Darks and aged rums position themselves as accessible alternatives to single malts, offering a similar tasting experience at often lower prices.
Imported Rum:
Performance of Imported Rums: Cuban rums like Havana Club and Bacardi are significantly declining, with decreases of -13.2% and -10.1% in volume, respectively. This underperformance contrasts with the success of ultrapremium rums.
Ultra-Premium Rum: Ultra-premium rums like Don Papa are thriving with a growth of +7.4% in volume and +8.5% in value. Don Papa is among the most dynamic brands after Rivière du Mât, with a spontaneous awareness of 14% at the end of 2023.
Innovations and New Offerings:
Formats and Cream Rums: The rum market is exploring new formats, such as 50 cl bottles, and diversifying with cream rums like the L’Onctueux range from Rivière du Mât. Ready-to-drink cocktails, led by Old Nick, continue to evolve with innovations such as new labels.
In summary, rum sales in supermarkets are declining overall, with a drop in volume and value. Consumers buy less rum compared to other spirits, but specific segments are performing well. Arranged rums and aged rums are growing, while ultra-premium brands like Don Papa are thriving. Despite challenges for major brands and imported rums, innovations and new formats offer potential for market adaptation and growth.
Source: https://www.lsa-conso.fr/du-cocktail-pret-a-boire-aux-rhums-valorises-le-rayon-gagne-en-expertise,456862
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