Why now is the right time for rum
WHEN it comes to the finer things in life, we are often told that good things come to those who wait.
Pretty customary with things like fine wine, champagne and Scotch whisky; it’s reasonable to assume that the older the bottle, the finer the quality and therefore the higher the price to pay.
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However, there’s another spirit to focus on, that’s also matured for years at a time and is rarely get spoken about in the same manner.
One that until recently, hasn’t enjoyed such commercial success in the premium sector.
That spirit is rum, and recent sales suggest we’re about to witness somewhat of a renaissance.
Rum is the worlds’ oldest spirit; it’s been enjoyed since the mid 17th century and is mostly famous for its historical ties to piracy and the navy.
It was once valued so highly, it became its own commodity for seafaring traveller.
But in recent times rum has slipped behind its contemporaries.
As many of its rival spirits capitalise on the modern premium and collectables market, rum has often remained confined to the middle shelf.
Scotch whisky has long been the standout premium spirit, enjoying a sustained period of success within the marketplace.
Following in the footsteps of these other spirits, premium rum sales increased by an impressive 18% in 2021, and a further 85% in the last quarter.
The potential for this growth is significant too, with premium rum only accounting for just 3.2% of global rum volume.
Compare that to the 10.9% for premium gin and 26.6% for Scotch whisky – the potential is very clear for all to see.
According to data from market insiders CGA, rum has enjoyed an unprecedented sales surge following the Covid-19 pandemic, with sales surpassing £1BN in the UK market alone.
This growth saw the rum category overtake Scotch whisky for the first time ever in the UK, as well as establishing itself as the standout spirit.
With such a dramatic shift into the premium market, should we now start thinking of rum in the same light as we do with fine wine and scotch whisky?
Not just as a drink, but as an investment?
Early indications certainly suggest so, and that isn’t just because of a recent change in drinking habits.
Unlike champagne or Scotch whisky, rum is a product made around the world and in varying jurisdictions, all without an overriding body.
In 2021, the EU law regarding age statement bottlings of rum was changed, now requiring all bottles sold to state the age of the youngest drop in the bottle.
This change not only ensures the quality of the bottled product, but it increases demand for aged rum casks, mirroring the exact process undertaken by Scotch whisky.
Unlike Scotch whisky however, rum isn’t aged in the cool, often wet mountains of Scotland.
It is in fact the complete opposite, ageing in the brutal summer sun that bakes the Caribbean and Central Americas.
Distilled from sugar cane, the world’s best rums are created in some of the warmest climates and as such, maturing these casks to Whisky levels of age is incredibly difficult due to natural evaporation.
With a growing market demand for high-quality aged rums, and maturing quality casks harder to achieve, a natural scarcity is starting to form.
The perfect storm for the premiumisation of the popular tipple, creating the ideal scenario for investors looking to benefit from this market change.
Scotch whisky cask specialists, Whisky Partners, recently announced its partnership with Varela Hermanos, the leading premium rum distillery in Panama.
They import high quality aged rum casks from Panama and mature them further, next to Scotch whisky casks in the cooler climate of Scotland.
Whisky Partners are creating the ideal solution to fulfil the future premium rum demand.
“There are some very strong parallels with rum, where it is now, and where Single Malt was twenty years ago”
Ken Grier
With the global rum market already valued at $16B and due to grow 6.7% in the next three years alone, many believe we are at the ground level of rum’s grand rise into the premium market.
Just as many savvy investors reaped the rewards of owning valuable Scotch whisky casks in the nineties, rum is offering a fresh opportunity to a new wave of investors.
Whisky Partners is proud to offer the opportunity to invest in high quality rum at entry level prices.
With dedicated iOS and Android apps and an innovative online portal, it has never been easier to get involved in cask ownership.
To learn more about this incredible opportunity, visit: rum.whiskypartners.com.