When rum producers turn away from the US, they respond to falling volumes and weakened demand. In 2024, the US market saw a 5% drop in rum sales, dragged down by sharp declines in flavored spirits. According to The Spirits Business, nearly half of total US rum sales come from flavored expressions, which now lead in losses.
Grégoire Gueden, president of Spiribam and CEO of Groupe Bernard Hayot’s spirits division, criticizes past reliance on trendy flavored offerings. “I’m building…stones of buildings that will still be there in a couple of centuries,” he says, contrasting long-term strategy with short-lived trends. Gueden’s portfolio includes heritage brands like Chairman’s Reserve, Bounty, Rhum JM, Rhum Clément, Beach House, and Arcane.
IWSR data paints a bleak picture: from 2022 through November 2024, every rum segment declined in the US, with flavored rum—the largest subcategory—suffering most. Premiumization occurred only modestly between value and standard tiers, with dark rum being the only subcategory to gain ground, rising from 11% to 17% share between 2019 and 2024.
Despite these shifts, no consistent standards around age statements or aging processes make it hard to push consumers up the price ladder.
Once rum producers turn away from the US, they seek growth across Asia. IWSR research director José Luis Hermoso reports that India and the Philippines now account for 45% of global rum volume—though they contribute under 20% of total value. These markets lean heavily toward value-priced rum.
Hermoso adds that while the US, UK, and France face volume declines, regions like Spain, Mexico, and the Dominican Republic are gaining value even as volumes dip.
Brands focus on premium, terroir-driven stories to stand out. Pernod Ricard’s Havana Club is experiencing demand in Germany, France, Spain, and the UK. Its limited Icónica Collection—finished in Redbreast Irish whiskey casks—targets collectors and cigar fans with nearly 3,000 numbered bottles.
Appleton Estate pushes age, heritage, and a GI for Jamaican rum. Despite 2024’s hurricane disruptions, the brand saw 5.2% global growth in early 2025 and introduced a £500, 26-year-old limited Hearts Collection release.
Diplomático and Campari emphasize authenticity and regional narrative. As consumers demand provenance and clarity, innovation continues in aged whites, spiced expressions, and sustainably sourced rums.
According to Bacardí’s Lisa Pfenning, the decline in flavored rum signals broader consumer shifts. As interest moves toward craft, flavor depth, and natural ingredients, blended RTDs and cross-cultural collaborations play a bigger role.
Bacardí introduced Ocho Sevillian Orange aged in orange wine casks, and partnered with NBA star Jimmy Butler to create Café Con Ocho—a signature coffee‑and‑rum cocktail series—demonstrating how rum brands connect storytelling and premium products.
As rum producers turn away from the US, they focus on markets with strong premium demand and clearer growth trajectories. With younger consumers in emerging markets rediscovering alcohol, and cultural narratives growing in importance, rum’s future may lie beyond American shores.
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The Spirits Business Article — Rum producers turn away from the US, written by Claire Dodd
The image of the article is courtesy of © nazar_ab via Canva.com
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