It’s a challenging time for the spirits industry as cost-of-living pressures hit hip pockets, but new data shows rum sales are beating general trends in the on-premise market.

According to CGA by NIQ’s latest On Premise Measurement Report, which analyses drinks trends in Australia’s pubs, bars and restaurants, there has been a year-on-year drop in spirits sales by volume of 8.1% in the last 12 months. Sales by value increased by just 0.6%, driven by price increases triggered by high inflation.

However, rum sales by value have risen by 2.5% in the last year, while prices have climbed 8.7%.

CGA’s breakdown of the category indicates that golden rum has been outperforming white rum. Golden sales by value have increased by 7.6% year-on-year, while white has dropped by 9.3%.

CGA by NIQ’s client solutions director – total liquor ANZ James Phillips said: “With many consumers still facing pressure on their spending, it’s clear that trading conditions in Australia’s spirits market are tough at the moment. However, it’s a very nuanced picture with pockets of growth opportunities for venues and suppliers—especially in rum.”

CGA’s state-by-state breakdown of sales reveals rum sales are particularly high in the home state of Bundaberg Rum, Queensland, where they have increased 8.8%.

The boost follows Bundy launching a campaign earlier this year, highlighting Australia’s punitive spirits tax regime. The brand unveiled a series of billboards, radio and social advertisements across the state in a bid to urge the Federal Government to freeze the twice-yearly increases to the spirits tax rate.

Global rum boom

Rum sales are booming globally. Growth is being fuelled by the continued spread of cocktail culture, but also by a change of image for rum, which is increasingly being taken seriously as a high-quality spirit to rank alongside Cognac and single malt Scotch whisky.

According to IWSR Drinks Market Analysis, the global spirits category grew +5% in volume in 2021-2022, with rum growing 9% ahead of whisky at +8%.

The world’s biggest selling rum is Tanduay, which arrived on Australian shelves in November 2023.

Tanduay international business development manager and senior brand manager Marc Ngo recently revealed: “Our international sales increased by 60.54% last year compared to the previous year.”

He highlighting a significant 59.24% growth in the Asia Pacific market alone.

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