RED Stripe is looking to capture a fifth of the local white overproof rum market in five years with its new Rum Fire brand, says Red Stripe sales director Brian Pengelley.

Red Stripe signed an agreement last week to become the exclusive distributor and marketer of Rum Fire, which is manufactured by Hampden Estate.

The move marks the first time that the traditional beer manufacturer will distribute white overproof rum and lures them into a lucrative local market long dominated by Wray & Nephew.

“In the next five years, we will probably be targeting a 20 per cent market share,” Pengelley told Sunday Finance on Friday.

Pengelley said that the brand will fit perfectly into Red Stripe’s distribution system and hence does not require the company to create any new sales force.

“We have an extensive route to market at the moment within our portfolio, so we are going to blend this product into our existing selling and delivery system,” he noted.

“It’s right into everything we do on a day-to-day basis, so it’s just a straight addition to our portfolio and the way we work.”

Hampden Estate, which forms part of the Hussey family-owned Everglades Farms, has been distilling spirits since 1753 and traditionally exports to the United Kingdom and Africa. It sits on 5,600 acres and is one of the world’s high ester rum producers. The estate was acquired by Everglades Farms in 2009 through a public bid as part of the sugar estate divestment procedures undertaken by the Government of Jamaica. Rum Fire represents the estate’s first bottled rum product to Jamaican consumers.

“What we are bringing to the market is an exceptionally smooth rum that is distilled at one of the oldest factories in the Caribbean and the heritage and pride of Hampden Estate is represented in each bottle of Rum Fire white overproof rum,” said Pengelley.

Pengelley said he believes an attractive price point as well as the taste of Rum Fire rum will find favour with Jamaican consumers.

“Some of the comments we’ve heard during a recent tasting is that this rum has an amazing aroma and is exceptionally easy to drink and we’re stoked about introducing this brand to the Jamaican market on behalf of the Hampden Estate,” Pengelley said.

Industry sources estimate the white overproof rum market to be valued at close to $2 billion. Wray & Nephew White Overproof Rum is said to control some 80 per cent of the market, with Charley’s JB Overproof Rum — which is said to be popular in Western Jamaica — a distant second with some 15 per cent. A few smaller players, such as Worthy Park Estate’s Rum Bar and KRB Lea’s Lion Pride, split the remaining five per cent, sources say.

“White Overproof Rum has long been a preferred drink by many Jamaicans but there has always been too few options,” said Pengelley.

The Red Stripe sales director also noted that the move is in no way a negative reflection of the local beer market, in which Red Stripe is the major player.

“We are still very much a beer company and driven by our beer brands,” noted Pengelley.

“Jamaica has always been a rum market and it continues to be a strong rum market and, for us, that’s a piece of the competitive advantage that we were missing… we just didn’t bring in rum other than with our Gold Label (Trelawney) rum brand,” he explained.

Red Stripe is a subsidiary of global alcoholic beverage manufacturer Diageo. In addition to manufacturing the local Red Stripe brand of beer, it produces Diageo’s international beer brands Guinness and Heineken from its plant on Spanish Town Road in Kingston, and is also a distributor of its parent company’s leading spirits, such as Johnnie Walker and Smirnoff.

Red Stripe posted total sales of $3.7 billion over the second quarter ending December 31, 2010, a marginal increase over the corresponding period the year prior.

Rum Fire, which has 63 per cent alcohol volume, will be available in the local marketplace by the end of March.