A rum thing

MARKETING: Angostura is here, but it's expensive. Over now to its promoters to see how they promote it - neat, or as a cocktail mixer.

CL World Brands, a global drinks group, is set to treat rum drinkers in India to Angostura "" what they claim is the bona fide Caribbean drinking experience.

The company, whose brand portfolio includes elite liquor brands like Hines cognac, and Sobieski vodka, hopes that it will make Angostura as well known for its refined rums as it is for its bitters "" a cocktail ingredient.

Angostura is the group's flagship brand, acquired over four years ago. In the last few years, Angostura Holdings has made the transition from commodity bulk rum supplies to brand play.

The rums, as Yorick Fonseca, director business development, points out, will offer no competition to market favourites like Bacardi and Old Monk rum. Instead, he hopes to drive the premiumisation of the segment in India, to echo what has happened in the recent past with vodka market.

"F&B heads are excited to finally be able to expand their rum lists," says Fonseca. "The rum market has suffered from a large gap; everybody today wants premium alternatives, and rum has had none," says Viveka Rawal of SV distributors.

Angostura has eight and seven year-old variants, along with younger mixing rums. The pick of the crop? A 12 year old sipping rum, priced at Rs 6,500 (750 ml).

The only potential problem "" Indian rum consumers, mostly entry-level drinkers, aren't necessarily the most discriminating; rum is still largely a transition drink from beer to hard liquor, according to a 2006 Euromonitor study.

Also, as Rawal points out, "The drinking base for rum isn't massive, and is driven almost entirely by cheaper dark rums." The rum market in India, according to Euromonitor, was close to 140 million litres in 2005.

"Internationally the growth of rum has been fuelled by the high-ends rums, so yes, India will be an educational challenge," says Mike Arnold, regional director, Indian sub-continent. "But look at how the market for malt whisky has grown," he adds.

Angostura, for the time being, will only be made available through duty free and on-trade channels." At 500 per cent duties, it makes little sense to be present in duty paid retail," says Arnold.

The bitters however, interestingly classified as a food flavouring, will be looking at a broad distribution strategy via modern trade and duty-paid retail.

"We're not looking for volumes yet for any of our brands (including rum)," says Fonseca, "just the right brand exposure." In two years, CL might explore the option of local bottling.