The rum market - France (2024)

1.2 The global rum market is growing

The global spirits and rum market

The spirits industry was hit hard by the restrictive measures imposed by the pandemic: the ban on going out and the absence of festive or social occasions led to a drop in spirits sales and consumption. In ****, the sector began to recover, and market growth was estimated to accelerate to ***.** billion US dollars by ****, with a compound annual growth rate of *%. However, the war in Ukraine largely slowed the sector's recovery, and estimates were revised downwards.

In ****, the global spirits market is estimated at nearly ***.* billion dollars. This market is expected to reach US$*** billion in ****, with a compound annual growth rate of *.*%. Global spirits market size World, ****-*****, in billions of US dollars Source : Globenewswire The global market is mainly driven by the development of developing countries and the growth of their populations, but also by market premiumization, digitalization and innovation in line with new consumer expectations, particularly with regard to environmental and health concerns.

In ****, spirits sales volume will reach *,***.* million *L cases sold, an increase of +*.*% compared to ****.

Worldwide sales in millions of *L cases Category **** **** % change Spirits ****,* ****,* *,* % Other spirits ***,* ***,* -*,*% Ready To Drink (***) ***,* ***,* **,*% White spirits ***,* ***,* *,*% Whiskies ***,* ***,* *,*% Brandy & Cognac ***,* ***,* *,*% Rum ***,* ***,* **,*% Liqueurs ***,* ***,* *,*% Tequila ...

1.3 Key figures for the domestic market

The French spirits market

In France, rums account for a high proportion of supermarket sales, representing almost *% of all spirits sold in supermarkets , as shown in the chart below.

Breakdown of spirits sales by volume in supermarkets France, ****, in FFS

This figure doubles when we consider consumption in CHR (***), rising to almost **% of spirits sales.

Breakdown of spirits sales in CHR France, ****, in FFS

We can see that rum is a spirit that is making a real contribution to the growth of spirits in terms of both value and volume.

In fact, the French rum market has grown from *** to *** million euros of sales in supermarkets from **** to ****. It is the spirit that contributes most to growth in the spirits market by value. by mid-****, rum sales stood at ***.* million euros (***), down *% on the same period in ****.

Between **** and ****, the value of rum sales will rise by almost *%, while volume sales will have fallen by almost *%, according to the graph below.

evolution of rum sales in supermarkets ****-**** France, ****-****, in Source: ****

The market is mainly driven bytwo segments: spiced rums and arranged rums. by mid-****, sales of spiced rums had reached ***.* million euros, and those of arranged rums ** million ...

1.4 Foreign trade in rum

French rum imports

Rum will account for almost *.*% of total imports of spirits and liqueurs in ****.

french rum imports by value in **** France, ****, in Source: ****

Rum imports rose by nearly **% between **** and ****.

In addition, we can see France's main rum suppliers below.

France's main rum suppliers France, ****, in % of total value Source: ****

France imports rum mainly from the Netherlands (***).

French rum exports

French exports are down, as are spirits exports overall.

french rum and spirits exports by volume in **** France, ****, as % of total Source: ****

Let's analyze France's main rum export customers in **** in terms of both value and volume.

Top * markets for French rums by value France, ****, in k€ Source: ****

In terms of value, the leading export market remains the United States, closely followed by Germany. In terms of volume, Germany is also the leading market, followed by Italy. (***).

Top * markets for French rums by volume in hectoliter of pure alcohol France, ****, in hectoliter Source: ****

2.1 Demand for spirits and rum in France

Overview of spirits consumption in France

Consumption of spirits has fallen sharply in recent years. In ** years, per capita consumption of pure alcohol has fallen from *.** liters per person in **** to *.** liters per person in ****, under the influence of public policies to raise awareness of the dangers of alcohol. Spirits consumers are becoming increasingly reasonable, and are increasingly choosing quality over quantity. Spirits consumption per person France, ****-****, liters per person aged ** or over Source: WHO In terms of frequency of consumption, older people and men drink the most. Men over ** have the highest proportion of daily drinkers (***). Similarly, over half of men aged ** to ** claim to drink at least one glass a week, ** points more than women in the same age category. Conversely,women are more likely not to drink spirits: **.*% of them say they do not drink alcohol, compared with **.*% of men[***]. Spirits consumption thus varies with age. According to an Ipsos study, there are also differences between the profiles of rum and whisky consumers. While half of whisky drinkers are over **, and **% are men, rum drinkers have a more mixed profile (***). **% of rum drinkers are even under **.

Rum, a popular alcohol

In terms of annual consumption volume, rum ...

2.2 Demand drivers

The spirits segment is becoming increasingly attractive to French consumers, thanks in particular to the emergence of cocktails. Spirits selection criteria Price and productexperience remain the two main criteria for choosing a spirit. Recommendations from friends and family and the variety of consumption methods (***) are more important than in **** when choosing a product. What are the criteria for choosing a bottle of spirits? France, ****, in % of people finding the criterion important Source: IPSOS Seniors (***) attach more importance to the fact of already knowing the product and to the age of the spirit. **-** year-olds are more likely to follow recommendations from friends and family, and advertising.

Festive consumption with a certain cyclicality

evolution of interest in searches for the word "rhum France, ****-**** Source: ****

The graph above represents the proportion of searches for a given keyword in a specific region and for a specific period, compared with the time when the rate of use of this keyword was highest (***). Thus, a value of ** means that the keyword was used less often in France, and a value of * means that data for this word was insufficient.

Preferred consumption times

Spirits are mainly consumed as aperitifs or in the evening; but more and ...

2.3 France's favourite rum brands

below are the sales volumes of the top ** rum brands in France at supermarkets. The best-selling brand is Captain Morgan from the Moët Hennessy Diageo group.

Volume sales of the top ** rum brands in supermarkets France, ****, in thousand liters Source: ****

Among these different brands, we can analyze which are preferred by the French. The graph below shows that Saint James rum is France's favorite, just ahead of Negrita.

France's favorite rum brands France, ****, in Source: ****

The level of appreciation for different rum brands increases with age. For the "Negrita" brand, only **.*% of **-** year-olds say they like it, while this proportion rises to **.*% for people over **.

Preferred rum brands by age France, ****, in Source: ****

It should be noted that the difference in the level of appreciation between Ile-de-France and the other regions is observed for all the other rum brands, although it is most flagrant for Negrita.

Source: ****

2.4 Cocktail consumption on the rise

Cocktail consumption is booming : according to a **** survey, **% of French people were consuming spirits in cocktails. Furthermore, in ****, **% of those surveyed said they were interested in mixology, -* points compared to **** [***] .

In ****, **% of French people consumed cocktails only away from home, and **% consumed them both at home and away from home.

Place of consumption of cocktails France, ****, in Source: ****

Nevertheless, the democratization of cocktails in CHR is also stimulating at-home cocktail consumption. In recent years, more and more households have been consuming them regularly at home, mainly young people. In ****, **% of French people will be drinking alcoholic cocktails at home (***)[***].

Among the most popular cocktails in France are several rum-based cocktails, including the mojito, which came out on top in the survey: **% of French people prefer it. A number of other rum-based cocktails, such as the Piña Colada and the Ti-punch, are also among the top preferences of the French.

French people's favorite cocktails France, ****, in Source: ****

Top * cocktail spirits for the French France, ****, in Source: ****

According to the chart above, rum (***) comes in fourth, with a net increase of * points compared to ****.

Top * pure spirits for the French France, ****, as % of total Source: So Wine It's also the most ...

2.5 Demand in the French West Indies

Stable rum consumption

Consumption of traditional rum in Martinique is a stable element within the alcohol consumption picture. Rum accounts for by far the largest share of consumption (***).

Breakdown of alcohol consumption Martinique, **** - ****, in LAP : Source: ****

In Guadeloupe, consumption of hard alcohol is significantly higher than in mainland France. Where weekly consumption varies between *% and **.*% in mainland France, Guadeloupe records rates of **.*%.

Spiritourism in Martinique

While Martinique is well known for its rum production, it has not hesitated to use this asset to attract new forms of tourism. The Spiritourisme trend has been at work for some years now: tourism based on discovering the production and tasting of local rums. Indeed, many tourists are interested in the distilleries and cane farms. This is a real source of economic dynamism for the country. In ****, the number of tourists visiting rum distilleries, for example, was estimated at almost ***,***. [***]

This new opportunity comes as no surprise. Indeed, rum consumption on the island is largely driven by tourists, who take advantage of their trip to sample the local flavours. So, whereas for other spirits, the breakdown of consumption between locals and tourists is +**% for locals and between * and **% for tourists, rum consumption is much ...

3.1 Industry forces and organization

Numerous players are involved throughout the chain before the rum reaches the end consumer:

The first players in this chain are the farmers or agricultural cooperatives, and the distillers (***); Eaux-de-vie and spirits manufacturers then carry out additional production stages; Intermediaries (***) provide the link between manufacturers and distributors; Three types of distributor can be distinguished in this market: food superstores, out-of-home consumers such as cafés, hotels and restaurants, and specialized retailers and duty-free outlets.

Players specializing in aged rum: master blenders

Joy Spence: master blender for Appleton Estate since ****. She is the industry's first female master blender. Trudiann Branker: master blender for Mount Gay Rum since ****. Lorena Vasquez: master blender for Zacapa for over ** years. Nelson Hernandez : master blender for Diplomatico. Jaiker Soto Bravo: former master blender for Campari Group. Daniel Baudin: student of Jaiker Soto Bravo at Campari Group. Jassil Villanueva Quintana: master blender for Brugal.

3.2 Production concentrated overseas

The rum production value chain can be seen below:

Source: ****

The detailed production process

We can generally distinguish between rums made from the distillation of cane juice (***) and those made from molasses. Obtained by crushing sugar cane, cane juice deteriorates rapidly: the producer must ferment it very quickly, then distill it. Molasses, on the other hand, is a thick, viscous syrup produced from the residues of cane sugar refining. It is used in the production of many rums.

Mixed with yeast, the must (***) ferments and is gradually transformed into alcohol, until it becomes a cane wine with an average alcohol content of *% to **%.

There are three different types of fermentation:

Spontaneous fermentation ; Controlled fermentation (***); Controlled fermentation (***).

Rum is distilled using a still. The choice of distillation method is often influenced by the country's colonial history.

As the regulatory framework is often not well defined, rum ageing and the resulting appellations may differ from one manufacturer to another. There are no minimum or maximum ageing periods, but very few rums are more than * or ** years old.

Rum can be aged in several types of wood:

Oak, renowned for its ability to enhance aging, and used in particular for whisky aging Chestnut ...

3.3 Distribution

We can see that the distribution of alcoholic beverages takes place mainly in physical areas (***), as mentioned above.

Online rum distributors, concentrated on exceptional products, appear negligible in terms of overall sales volume. **% of rum sales are made in supermarkets, and **% in the on-trade.

Market digitalization underway

Despite a significant decline, supermarkets remain by far the *st channel used to purchase spirits, with specialist stores (***) retaining the *ᵉ position and these sales increasingly using the internet.

Spirits purchase locations France, ****, in % Source: ****

Despite a downward trend, supermarkets remain the main place of purchase. Internet purchases have become increasingly common over the years: **% of purchases will be made online in ****, an increase of * percentage points compared to ****. Wine shops are also very popular: **% of purchases will be made at a wine shop, up * percentage points on ****. Supermarkets remain by far the main place of purchase for both sub-target groups. Younger consumers are more inclined to buy from wine-producing companies, and to go out (***). We note that internet purchases by the oldest age group have increased significantly vs. ****.

Below, we can see a classic diagram of how rum is distributed between imports, exports and types of distributor. Note that the dotted arrows reflect marginal ...

3.4 Increasing competition

The rum segment is highly competitive.

Leaders are keeping up a steady pace of innovation to maintain their market share, which is leading to ever-increasing competition.

for example, Captain Morgan, number one in the sector with spiced rums, is attacking the white rum segment with Captain Morgan White, to compete with Bacardi in Caribbean white rums under the mojito banner. Similarly, Old Nick (***) is extending its exploration of colored rums with Ambré des Îles, a blend of rums from Guadeloupe and Martinique aged for six months in oak casks, with strong advertising support.

Private labels are also entering the market:

Carrefour and its UTC* brand, which is adding a *ᵉ reference of arrangés in ****.

Whisky players are also offering rums:

hédone, the made-in-France offering from Whiskies du Monde, has been designed for mass retailers.

4.1 Types of rums on offer

Rums can be segmented in different ways: industrial rums vs. agricultural rums age imported rums vs. rums specific to DROMs These rums can be used for a variety of purposes: disgorging or as a base for cocktails Types of rums Characteristics Examples of brands White rums White rum is light in color, generally sweeter in flavor and lighter in body than golden or dark rum. Saint James Amber or golden rums After a few months, rum aged in wooden casks (***) turns amber. This term refers to its color, but also reveals a different palette of flavors: light aromas of wood and spices, and a more gourmet roundness Diplomatico Old Nick Arranged rums Arranged rum is a preparation of rum in which various ingredients, such as leaves, fruit, seeds, bark or sweets, have been macerated. An emblematic drink on Reunion Island, it is also common in the West Indies and Madagascar Isautier Damoiseau La Mauny Spiced and dark rums These rums are generally enhanced with added caramels and spices to accentuate or even exaggerate the rum's initial qualities. Captain Morgan Bacardi Spiced Clan Caribbean The Kraken Dark or aged rums If a rum has aged for more than a few years (***), it ...

4.2 A more premium and environmentally-friendly rum offering

According to an IPSOS study, nearly **% of buyers say they attach greater importance than in the past (***) and environmental aspects.

These changes in consumer attitudes are directly reflected in emerging trends in the French rum offer.

A desire to move upmarket: premiumization of rums

A not inconsiderable proportion of consumers aspire to more premium, even tasting, products. "Standards account for **% of the total market in value, but are losing market share to superpremium and ultrapremium," notes Frédéric Le Garff of Havana Club.

According to British consultancy IWSR, the share of premium (***) in French rum sales across all channels will rise from **% to **% by ****. " Old rum only accounts for two million liters in supermarkets, but we are convinced that a virtuous spiral has begun. the launch of our Terroir volcanique in this channel ", corroborates Grégoire Gueden, head of the spirits business of Martinique-based GBH, the owner of Clément et JM.

More CSR-oriented players

Generally speaking, thespirits industry is now at a crucial turning point in terms of eco-responsibility. The rum industry is no exception.

Consumers of spirits are paying increasing attention to the socio-environmental commitment of companies, and the environmental impact of their consumption. This concern is also ...

4.3 Rising prices

We can see that the price per bottle has risen steadily over the ****-**** period, from €**.* to €**.**.

The craze for the product and the quest for higher-quality consumption have logically led to a substantial price increase, amounting to **.**% over the period.

it should be noted that the introduction of the Social Security tax has led to an increase of around * euro per liter of rum sold in the French overseas departments. This tax, which is due to be repeated every year until ****, could endanger the more independent small distilleries in the French overseas departments[***].

average rum price trend France, ****-*****, euros Source: ****

Price indices

This rise in the average price of rum reflects a general upward trend in the prices of alcoholic beverages, and distilled beverages in particular. In France, the consumer price index for alcoholic beverages will reach ***.* in **** (***) and nearly *** in ****, illustrating a sharp increase of nearly **% in the price of these beverages for the end consumer.

Consumer price index for alcoholic beverages France, ****-****, base *** in ****

Source: ****

4.4 Martinique rum

An essential market

While Martinique's sugar cane production is one of the mainstays of the island's agri-food economy, rum production is another. This sector alone accounts for **% of the added value of the island's food industry, and sugar cane is the island's second most important agricultural crop after bananas.

Over the last ten years, average annual production has been close to ***,*** tonnes for *,*** hectares, or around **% of the UAA (***).

according to CODERUM ,**% of local production is exported .

The sector employs nearly *,*** people on the island.

AOC rum

Rum from Martinique is the only agricultural rum with an Appellation d'Origine Contrôlée (***). Since ****, this designation has authenticated the quality of local rum production. Following distillation, the rums covered by the AOC are as follows:

Rhum Martinique "blanc": no coloring / minimum preparation three months after distillation. Rhum Martinique "élevé sous-bois": aged in oak casks on the production site for a minimum of ** months. Rhum Martinique "vieux": ageing takes place on the production site / minimum three years in oak casks.

All rums qualifying for the appellation must have an alcohol content of at least **°.

An inevitable price rise

In late **** - early ****, rum prices in Martinique followed the general trend, rising by * to ...

4.5 Old rum price range

Bottled aged rums

The price of bottles of aged rum varies widely, depending on the brand, the year of production, the degree of alcohol present and the length of ageing. Bottles can be found on the market for as little as €**, with the rarest and most upmarket priced at almost €*,***. Here's a non-exhaustive overview of prices on the market for bottles aged **, **, ** and ** years:

Source: ****

There are few bottles over ** years old available for sale. Nevertheless, there are a few **-year-old vintages, such as the Black Tot bottle at €*,***.

5.1 Current regulations

France is concerned by European regulations. In particular, the following regulations are central:

Regulation (***) No ***/**** of the European Parliament and of the European Council of January **, **** on the definition, description, presentation, labeling and the protection of geographical indications of spirit drinks related regulations****/***and ***/**** update the aforementioned framework

In addition, there is a comprehensive national legislative framework. Given that spirits are alcohols of at least **º and that the majority of products have an alcohol content well above the average, spirit drinks are highly regulated.

Below is a non-exhaustive list of laws and regulations relating to alcohol (***) in France:

Production

Bottles of alcohol must be strictly labeledwith the followinginformation: type of beverage, ingredients, alcohol content, capacity, allergens, "Zero alcohol during pregnancy" pictogram. Regulation of certain products to obtain the AOC (***) label, as is the case with cognac, armagnac and Martinique rum. In total, there are** productswith the acronym AOC in France. [***]

Distribution

Retailers need aLicense IVin order to sell spirits on the CHR (***) circuit. Anyone operating a drinking establishment must undergo training to obtain a "permis d'exploitation". There are often restrictions on the hours during which an establishment can be open or during which alcoholic beverages can be sold. For example, municipal ...

5.2 Future regulations

Rum regulations in France are in a state of flux, mainly due to new European spirits laws. Below, we take a look at the various upcoming changes:

Ban on additives: One of the major aspects is the ban on adding artificial flavors to rum. For example, if a vanilla flavor does not come naturally from barrel aging, the product will no longer be allowed to carry the appellation "rum"(***)

Age labelling: The rules governing the labelling of rum will become stricter. Only the age of the youngest component of the blend may be mentioned. It will no longer be possible to indicate misleading age ranges, such as "aged up to ** years"(***)The aim is to clarify information for consumers, particularly on practices such as ageing.

6.1 Segmentation

• Bacardi
• Captain Morgan (Groupe Diageo)
• Malibu (Pernod Ricard)
• Botucal - Diplomático (Groupe Brown Foreman)
• El Dorado Rum
• La Maison Du Rhum
• Dugas (Stock Spirits)
• La Martiniquaise Bardinet
• Pernod Ricard Groupe
• Isautier Rhum
• La Compagnie du Rhum
• Rhum Hardy
• Trois Rivières Rhum (Campari)
• Rivière du Mât
• Neisson Rhum
• Longueteau Rhum
• BBS La Mauny Rhum (Campari)
• Spiridom
• Don Papa Rhum
• Depaz Rhum (Bardinet)
• Dillon Rhum
• Damoiseau Rhum
• Clément Rhum (Bernard Hayot Groupe)
• Charrette Rhum
• Bologne Rhum
• Bielle Rhum
• Bellevue Rhumerie