Ta ra rum...

SPIRITS: Finally, there's to be some action in the rum market as Diageo enters the fray

After a long dry spell (compared to the action in the scotch or, for that matter, vodka market), the rum market in India is finally seeing some excitement. With the launch of Captain Morgan, Diageo is looking at making inroads into the Indian market. The brand was launched in Mumbai in April and is all set for a launch in Delhi today.

The rum market in India stands at about 34 million cases and is dominated by Celebration (United Breweries) and Mohan Meakin's flagship brand, Old Monk. Bacardi is the other major player. The market has a lot of price points and a majority comes from the lower end where the price is below Rs 150 for a 740 ml bottle.

Say Santosh Kanekar, head marketing, Diageo, "The potential is there for all to exploit, and we hope that with Captain Morgan, we succeed in making a huge dent in the space."

The market is growing at about 20 per cent per annum, which is considered to be more than decent when compared to other categories in the IMFL segment. In terms of price points, Captain Morgan faces direct competition from market leader Bacardi, which has its white rum as its flagship brand rather than Reserva, which is the dark variant of rum.

Captain Morgan is priced at a premium compared to the other brands "" a 750-ml Captain Morgan bottle is priced at about Rs 550 while a 750-ml Bacardi bottle comes for Rs 400.

Meanwhile, according to reports, the sales of Old Monk have dipped over the last few years while Celebration has been garnering a chunk of the market.

To push Captain Morgan, Diageo is planning a slew of promotional activities around the brand. The company plans to have men dressed in Captain Morgan's attire stationed in bars to promote the brand, apart from planning campaigns on TV, print and other outdoor mediums.

"A lot of companies are now experimenting with other categories and thus, it might prove to be bit tough for a new brand to come in," says a marketing executive from a rival company. The growth in the market, according to Kanekar, comes from the fact that whisky makers are now attempting to enter the rum market.

Diageo, for one, is targetting whisky drinkers and Kanekar feels that apart from the usual suspects in the rum market, it would face stiff competition from vodka and other spirits.