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    Chile: Global Rum Brands ‘flee the market’ in Chile

    Rum-declines-in-ChileRum volumes in Chile have dropped 40% in the past two years as international brands “flee the market”, a leading drinks analyst has claimed.


    According to David Mackinson, research analysts at Euromonitor International, rum sales have dropped dramatically over the past two years following almost a decade of consecutive growth.


    “Rum is no longer the in drink in Chile,” Mackinson said. “The drink enjoyed a decade of uninterrupted growth in which Chileans saw it as more refined than the traditional Pisco.”


    However, Mackinson claimed that while the most common explanation for the growth is Chile’s recent no-tolerance drink driving laws, another reason is that consumers grew fatigued by the prevalence of the spirit.


    “Rum became so popular, it got an image problem in the sense that it wasn’t seen as special or unique  – it was almost directly associated with low class,” said Mackinson. “It became overdone, so Chileans abandoned it.”


    With regards to rum distributors and manufacturers in the country, Mackinson said that over the course of the past two years “all their work has gone to waste”.


    The average unit price for rum in 2013, he said, was at its lowest since the year 2000. International, premium brands are therefore ” fleeing the market”.


    “Because of this, a few local brands are battling it out to survive,” said Mackinson.

    Source: The Spirits Business