Rum exports boost
GORDON K Clarke, managing director and CEO of Worthy Park Estate Limited, has confirmed both an uptick in local sales and exports as Jamaican rums grow in demand on the international market.
His confirmation comes as local buyers report rationed sales of J Wray & Nephew branded rum at some outlets and none available at others.
Instead buyers are taking up what remains plentifully available, which are Rum Bar, Rum Fire, JB and others which are now leaping into willing hands.
In a General Foods store in St Andrew, one buyer who tried to make a purchase for travel was told that he could have only two quarts of his preferred brand.
Liquor store owners are opining, meanwhile, that the export of Jamaican rum is the reason for a slowdown in supply of some brands. J Wray & Nephew maintains that its product is not short.
However, at Worthy Park, there is no shortage, with Clarke telling the Jamaica Observer that sales have been up, continuing the trend seen in 2021.
He stated that for the fiscal year ended September 30, 2021, sales were up 25 per cent year-over-year in local outlets and had, meanwhile, doubled for exports.
Clarke said that for competitive reasons he was unable to share data on dollar value and volume, but indicated that bestsellers were Rum-Bar White Overproof rum locally followed by Rum-Bar Rum Cream.
The company head commented, “The consuming of rum, for most people, is a good ‘experience’ and during 2020, sales declined due to lockdowns and curfews (bar closures and banned events), but by 2021 sales increased even past 2019 levels due to people seeking good experiences during these times even though much less socialising was taking place. Like food and music, rum is a mood changer. We welcome responsible drinking and we offer quality products and the consumers are responding to that.”
Campari, owner of J Wray & Nephew, in its year end report for the Jamaican market, indicates that Magnum Tonic experienced solid growth thanks to the core of demand in the UK and Jamaica. In total, at year end Jamaica delivered 106.1 million euros in sales representing organic growth of 28.0 per cent for the year.
Campari said that J Wray & Nephew Overproof grew 17.1 per cent overall, thanks to the positive consumption trends in the core markets of Jamaica, the UK and Canada.
The annual report outlined that Appleton Estate was positive overall (+31.0 per cent) driven by the successful relaunch and favourable category trends in the premium rum, particularly in the US, the UK, Jamaica and Canada.
Price increases are expected for Campari owned brands soon. Campari reported a “darkening outlook for prices and profitability hit Campari’s shares.” Packaging is said to be responsible for around half of the cost increases, Chief Financial Officer Paolo Marchesini said, citing glass for the beverage bottles as a number one cause. Agave, a key ingredient of tequila, and sugar are other sources of inflation.
Overall, Campari reported a nearly 26 per cent rise in like-for-like sales to 2.17 billion euros in 2021 helped by increased online purchases of spirits and cocktail consumption at home.
Adjusted operating profit, or earnings before interest and taxes (EBIT), was reported to come in at 435 million euros, up 42 per cent up.
