While rum's popularity has been ramping up in India, the premium rum market has witnessed extraordinary growth in recent years, positioning it alongside high-quality spirits such as premium whiskies.
Pushpanjali Banerji, Brand Director, Kyndal Group
The demand for rum exceeds 31 million cases per year, with a 5.1% CAGR, according to the International Wine and Spirits Record (IWSR). Kyndal Group, a premium alco-bev manufacturer and distributor, chose to seize this opportunity to launch a premium rum brand that matches the consumers' demand to upgrade to higher-quality rum.
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Kyndal Group introduced its rum brand Bootz Dark Jamaica Rum in the Indian market at the end of 2015, under the guidance of Bols' master distiller Piet van Leijenhorst. According to the International Wine and Spirits Record (IWSR), Bootz Rum sold over 25,000 cases within a year of its inception, positioning it as the number one brand in its price range. This achievement has further reinforced the consumer demand for top-grade rum from Kyndal, for which they are willing to pay a premium. The Dark Jamaica Rum brought a new segment of premium rum in the country, attracting Indian customers with rich and fragrant aromas reminiscent of those enjoyed worldwide.
Rum has been associated with the armed forces for a long time, with rum sales accounting for over 50% of all spirit sales in the Canteen Stores Department. Rum is also the preferred spirit in India's eastern and southern regions. With the launch of rums like Bootz Rum, customer preferences have changed towards premiumised and more flavourful spirits that can be enjoyed in any season, irrespective of generational or cultural differences.
Speaking about the launch and its market context, Pushpanjali Banerji, Brand Director at Kyndal Group explained that Kyndal signed an equal joint venture agreement with Amsterdam-based Lucas Bols (a 450-year business entity, the world's oldest distilled spirits brand, and one of the oldest firms flourishing worldwide) to provide world-class quality products to Indian customers. As part of the JV, the Bootz Dark Jamaica Rum, a blended rum with imported aged Jamaica Rum Spirit, was launched in India in 2015. The partnership entails bottling various brandy and liquor beverages from Lucas Bols' stables and distributing and marketing these brands. Kyndal's marketing skills, comprehension of the Indian diaspora, and expertise in blending spirits have captivated this distinct niche of the Indian market.
"Kyndal firmly believes in investing in R&D before entering new markets or launching a product. It has helped us successfully penetrate new categories based on consumer demographic and psychographic segmentation for a vast market like India. Additionally, numerous studies around the upcoming trends in the Alco-Bev industry indicate that the new generation is more likely to explore and experiment with new artisanal brands that resonate with them," said Pushpanjali Banerji, Brand Director, Kyndal Group.
The rum demand is seeing a turnaround following a two-year macroeconomic slump, and premium rum is a new market geared to millennial customers who are more curious and searching for new brands and flavors to explore.
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