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502-320-6419 - The American Distilling Institute

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<strong>The</strong>se two classic rum cocktails are<br />

from martin Cate, proprietor of<br />

Smuggler’s Cove, the famous<br />

rum bar in SF:<br />

Daiquiri #3<br />

.5 oz fresh lime juice<br />

.25 oz fresh grapefruit juice<br />

dash superfine sugar<br />

.25 oz maraschino liqueur<br />

2 oz light, dry Spanish style rum<br />

(or your favorite - it’s a flexible drink)<br />

Combine all and shake and fine<br />

strain into a chilled cocktail glass.<br />

bumbo<br />

2 oz full bodied, pot-still rum<br />

.25-.5 oz demerara simple syrup<br />

Stir on the rocks in an<br />

old-fashioned glass and top<br />

with fresh grated nutmeg.<br />

cultural associations with rum by educating his<br />

consumers on the history of rum and letting<br />

them know that his rums are <strong>American</strong>-made.<br />

Prichard explains, “<strong>The</strong>re are a lot of people<br />

out there who don’t realize that America was<br />

the largest producer of rum prior to the <strong>American</strong><br />

Revolution. And people also expect rum<br />

to be cheap. If you get them to buy an $80<br />

bottle of rum, which we have, you have done<br />

a marvelous job of educating your consumers<br />

that not all rums are white, or cheap, or made<br />

with back strap, or made in the tropics.”<br />

Andrew Causey wraps up the issue of<br />

educating consumers through his observation<br />

that “there are some really, really good rums<br />

out there, and some really bad ones, and most<br />

people have only tasted bad rum. It is our<br />

responsibility as craft distillers to change that.”<br />

Competition With Whiskey, Vodka,<br />

and Foreign Rum Markets<br />

Another big challenge facing the <strong>American</strong><br />

craft rum industry comes in the form of stiff<br />

competition with popular whiskey and vodka<br />

categories, followed by foreign rum. According<br />

to the spirits category table reports released<br />

by DISCuS for 2010, 24.9 million nine-liter<br />

cases of rum were sold that year, while 59<br />

million cases were sold, followed by 47 million<br />

cases for all whiskey categories. <strong>The</strong> good news<br />

for rum producers, according to a 2010 report<br />

released by Impact Databank, is that rum<br />

consumption has doubled from roughly 11<br />

million cases in 1994 to over 24 million cases<br />

in 2009. But with craft spirits only comprising<br />

about 1% of total distilled spirit sales, with<br />

most of those sales for vodka or whiskey, craftproduced<br />

rum is still only a drop in the alcohol<br />

bucket.<br />

When it comes to <strong>American</strong> craft distillers<br />

competing with non-domestic produced rums,<br />

Kelly Railean points out that both tough federal<br />

and state governmental regulations give foreign<br />

producers the upper hand. For instance,<br />

in order to comply with such regulations, she<br />

must increase the price of her products to stay<br />

afloat. Although certain regulations, such as<br />

environmental laws, can be a good thing, overseas<br />

producers don’t always have the same costs<br />

of compliance and can sell their products more<br />

cheaply. In the state of texas, she has to sell her<br />

products directly to a licensed distributor. And<br />

is so often the case, the distributors tend to<br />

promote giant brands like Bacardi rather than<br />

promoting small brands because of the much<br />

larger financial return.<br />

As noted above, most of the producers and<br />

experts I interviewed observe that consumers<br />

usually expect rum to be cheap as compared<br />

to other spirit categories. “People will not pay<br />

$40 for a good bottle of rum when they can<br />

buy it cheaply from Captain Morgan,” Luis<br />

Ayala laments, “but they don’t mind paying<br />

$40 or more for a good bottle of vodka or<br />

whiskey. In this way, although the volume of<br />

sales has doubled for rum since 1994, rum is<br />

still lagging behind other spirits in what people<br />

are willing to pay.”<br />

Phil Prichard realized in the mid-2000’s that<br />

rum can often be a seasonal item and harder<br />

to sell year-round than whiskey. Early in his<br />

distilling career, a distributor once told him<br />

“people like rum, but they love whiskey.” And<br />

as he noticed his rum sales begin to level off,<br />

he began producing whiskey so that his distillery<br />

would see continued growth.<br />

<strong>The</strong> Forcast For Rum<br />

<strong>The</strong> rum producers I spoke with all exhibited<br />

a “cautious optimism” regarding the future<br />

of <strong>American</strong> made rum. Clearly, there are<br />

several hurdles that must be addressed as rum<br />

continues its gradual ascent. And while these<br />

distillers want rum to be at least as popular as<br />

whiskey and vodka, they realize that it may<br />

never completely catch up in sales with these<br />

categories. Yet, there is a tremendous amount<br />

of room for distillers to be creative in experimenting<br />

and producing new flavor profiles,<br />

thus developing a variety of styles of the new<br />

breed of <strong>American</strong> rums. As Andrew Causey<br />

assured me, “Rum is going up and up, and<br />

there is plenty of room to grow. <strong>The</strong> sky is the<br />

limit.” And that is great news.<br />

(EDItOR’S NOtE: Nancy Fraley is currently<br />

producing a Craft Rum Aroma Wheel<br />

for use as both an industry tool and rum<br />

consumer education guide.)<br />

5 rums every<br />

micro distiller<br />

should try<br />

By Luis AyALA, Rum ConsuLtAnt<br />

“Don’t be stuck having to sell what<br />

you just produced, instead plan<br />

to produce that which you<br />

truly want to sell”<br />

Ron barceló Gran Platino, 1 year old,<br />

Dominican Republic. Why: white rums<br />

don’t have to be destined for the cocktail<br />

shaker! this white rum demonstrates<br />

that good craftsmanship can<br />

result in sipping white rums that vodka<br />

drinkers can enjoy, while still retaining<br />

the character typically associated with<br />

cane spirits.<br />

Santa Teresa Rhum Orange, 2 year old,<br />

Venezuela. Why: most so-called fruitflavored<br />

or spiced rums in the market<br />

are made with raw, un-aged ethanol.<br />

With Rhum orange, santa teresa has<br />

produced a true, flavored aged rum that<br />

takes advantage of legitimate aromas<br />

and tastes in their alcohol base, showing<br />

what a true fruit flavored rum can<br />

be like.<br />

Ron Viejo de Caldas Grand Reserve, 8<br />

year old, Colombia. Why: many beginning<br />

rum producers believe that as rum<br />

is aged, it tends to develop mainly brandy<br />

and fruit notes. this rum showcases<br />

what careful fractional selection and<br />

aging can produce when artfully aged<br />

and blended; it is a true eye opener.<br />

English harbour 10 year old, Antigua.<br />

Why: this rum demonstrates that one<br />

does not need to grow very old waiting<br />

for rum to mature into something truly<br />

exquisite. one single decade of aging in<br />

the right environmental conditions can<br />

produce superb results.<br />

Zafra Master Reserve 21 year old,<br />

Panama. Why: it has been said that<br />

patience has its rewards, and nothing<br />

like this rum to prove how truthful<br />

this assertion is. While there are other<br />

rums that are as old or older, those<br />

products are also considerably sweeter.<br />

Zafra proves that remarkable smoothness<br />

and persistent complexity can be<br />

achieved without being sugary.<br />

2 0 1 2 • a m e r i c a n d i s t i l l i n g i n s t i t u t e d i r e c t o r y<br />

17

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