India becomes Bacardi's second- largest rum market by volume

India has overtaken Mexico to become Bacardi’s second largest market for rum by volume, as the interest of consumers have gradually shifted to pricier products within the spirits segments in a largely whiskey-dominated market.

Bacardi had sold about 1.7 million cases of its eponymous brand in India, which was 1.4 million in Mexico in 2018.  According to the International Wine and Spirits Research (IWSR), both countries had similar volume sales at 1.4 million cases. US continued the major market for the Bermuda-based company with rum sales of 6.4 million cases.

The sale grew 19 per cent year on year for most of the premium segments. The company consider India’s market to be among top priority in global market and newer brands and infrastructure are introduced.

With total sales of Rs 3,215 crore (US$ 446.8 million) or 6.1 million cases, the manufacturers of Bombay Sapphire gin, Grey Goose and Dewar’s Scotch, remains the third largest international spirits company in India, after Diageo and Pernod Ricard.

This volume has seen a doubling over the past three years, after it was launched with a slew of products, particularly in non-rum segments such as William Lawson's Scotch, Dewar's 15- and 18-year-old, Star of Bombay gin and sparkling wine brand Martini Prosecco.

The volume has nearly doubled over the past three years, after it launched a slew of products, especially in non-rum segments such as William Lawson's Scotch, Dewar's 15- and 18-year-old, Star of Bombay gin and sparkling wine brand Martini Prosecco.

Whiskey contribute for nearly 70 percent of India's overall spirits market of 343 million cases in volume.

Bacardi doesn't want to constrain its rum portfolio and is in initial phase to launch higher priced versions. It has lately launched Reserva Ocho, an eight years aged rum in India and has plans to introduce four years and 10 years aged rum.

Rum as a group is progressively shifting to aged products globally, like whiskey or the scotch segment where consumers like their drinks based on maturation age. The trend will not be different in India which is premiumising rapidly.

Bacardi's rum portfolio has seen a growth of 22 per cent. In contrast, Diageo, which owns McDowells No1 Celebration and Captain Morgan rum, saw a 3 per cent decline in 2018 in the segment at a much higher base. Mohan Meakin's Old Monk grew 7 per cent while sales of Khoday expanded 5 per cent.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.