Can rum recover with Gen Z after losing millennials?

Rum brings in $2.4 billion for American distillers each year, according to the trade group DISCUS, or the Distilled Spirits Council of the U.S. But in the last ten or so years, whiskey and tequila—especially Irish and American-made bourbon—have become more popular among drinkers, mostly millennials.

Rum’s major issue and the Gen Z new wave

“As long as it’s taken seriously and not written off, rum can definitely hold its own against other spirits, says Nick Jackson, head bartender at The Rum House, a Times Square cocktail bar.

Rum manufacturers have a new chance to market their product as Gen Z gets older and starts to drink legally.

““here is a new wave of younger, Gen Z bartenders who are excited to show off their skills,””says Alex Fellows, senior brand manager at Jack Daniel’s maker, Brown-Forman. Brown-Forman purchased the Diplomático Rum brand in 2023.

Cocktail connoisseurs, according to Fellows, have done a good job of reimagining traditional drinks like the old-fashioned, usually made with whiskey, or introducing rum through well-known concoctions like the mojito and piña daiquirí.

However, Rum still has work to do. Patrón, along with a few more recent brands like Casamigos, helped revitalize tequila so that it’s no longer just about pumping shots, but also about sipping and creating sophisticated cocktails.

Seeking a champion

Fellows states, “Rum is still waiting for that premium player to invigorate rum.”

Within the spirits sector, vodka, tequila, and bourbon have seen an increase in reputation and price power due to the efforts of category “champions” such as Absolut, Patrón, and Maker’s Mark. However, rum hasn’t yet yielded a standout winner.

According to DISCUS data, under 3% of rum sales volume in the United States are for “super-premium””bottles, or bottles that cost $30 or more. This is well behind mezcal and tequila from Mexico, which comes in at a combined 25%, and American whiskey, which comes in at 18%.

While some traditional manufacturers base their labels on less expensive components, such as molasses, Copalli Rum says he prefers to use sugarcane. According to David Bart, CEO of Copalli, ““ou get a better product when you use better ingredients.”

Three distinct rum expressions are available from Copalli, one of which is a cacao rum that lends the rum a chocolate flavor that pairs well with an espresso martini. The firm grows and harvests all the cacao and sugarcane on its land in the Belizean jungle. Additionally, devoid of artificial flavors, colors, or additions, Copalli’s rums will continue to use substances found in rainforests for future advancements, according to Bart.

While a number of celebrity-endorsed brands, such as model Kendall Jenner and actor George Clooney, have given tequila a boost, Bart believes rum producers should emphasize heritage and premium ingredients more in their marketing. He claims, “We’re not counting on hiring a big celebrity to promote our brand.” “That seems a little out of date.”

It’s a matter of marketing

Bacardi is less hesitant to associate rums with popular culture.

In an effort to strengthen its appeal among Gen Z drinkers, the company collaborated with singer Camila Cabello to produce a music video for her song “I LUV IT.”

Rum has proven especially alluring to singers. Ciara, Kenny Chesney, and Bruno Mars have all taken a spot in the rum industry.

According to Bacardi, the rum market is now more competitive as a result of those products and numerous new competitors entering the market.

The vice president of Bacardi’s rum portfolio in the Americas, Lisa Pfenning, notes, “These challenges also present exciting opportunities.” She believes that more people becoming aware of rum’s versatility would be beneficial. The citrus-forward Sevillian Orange Cask Finish, one of Bacardi’s newest products, is meant to be sipped straight or mixed into cocktails.

Planteray is a rum brand that blends rums from 16 countries, including Paraguay and Jamaica. A rum with pineapple or coconut infusion is one of the most recent releases.

“Our goal is to provide people with the lovely, tropical scents—cane and molasses, in particular,” states Guillaume Lamy, general director of Maison Ferrand’s North American market for alcoholic beverages.

Planteray draws inspiration from the variety of rum, pointing out that flavors can evolve in distinctive ways even within the same nation. For instance, rum produced in the south of Jamaica often has a lower proof than rum made in the north. Lamy explains, “That’s the beauty of rum.”

A small marketing difficulty could also arise from that diversity. More than fifty countries supply rum for import; notable producers include Jamaica, Barbados, Guatemala, and Suriname; lesser-known producers include Argentina, and the Bahamas.

In addition, the history of rum can be a little more confusing considering the variety of methods used for flavoring, maturing, and distillation than tequila and cognac’s, which are exclusively made in Mexico and France, respectively.

Bart says, “We have to force people to think differently about rum.” “Anywhere can make it.”

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The article image is courtesy of Jacob Lund on Canva