A new era of flavour & innovation

In India, rum has predominantly been perceived as a winter drink, often consumed with hot water. However, it is now going through a metamorphosis that is making it gravitate towards being an aspirational and premium beverage. As Gurjas Singh, Director, Penguin Overseas explains, the younger generation is now gradually favouring flavoured rum for special occasions. At the same time, he believes that traditional rums still hold a significant place in the Indian market and are not losing volume.

Indian consumers are increasingly ready to embrace premium and luxury rums, and this trend is reflected in the year-on-year growth that the industry has observed, particularly for premium offerings. As Gurjas observes, the key to driving this demand lies in building trust with consumers. When they know they are investing in a high-quality product that delivers consistent value, they feel confident sharing it with others. This trust forms the foundation for growth in the premium spirits segment. 

Gurjas is personally excited about the potential for flavoured rums to make its mark in the Indian market. “With the right introduction, flavoured rums could become a game-changer, offering a fresh and approachable entry point for younger consumers and those looking for unique and versatile spirits,” he says. In this emerging scenario, the company’s portfolio of Barceló rums is performing exceptionally well in the domestic market.

Currently available in 12 states and expanding, its value offerings— Barceló Dorado and Barceló Blanco—are key volume drivers. Meanwhile, the premium range, Barceló Imperial and Onyk, are generating impressive volumes in regions with comparatively lower excise duties. The portfolio includes six variants: Barceló Dorado (starting at Rs 1,200), Barceló Blanco (starting at Rs 1,200), Barceló Gran Añejo Dark (starting at Rs 1,800), Barceló Imperial (starting at Rs 3,500), Barceló Imperial Onyx (starting at Rs 3,600) and Barceló Imperial Premium Blend 40 Aniversario (starting at Rs 12,500). These are imported from Ron Barceló and are 100 percent sourced and crafted in the Dominican Republic.

Demand and Popularity

Factors driving the brands’ popularity include the rich heritage of Dominican craftsmanship, diverse flavour profiles catering to both casual and sophisticated palates, and the growing appreciation for premium rums among Indian consumers. Barceló rums are recognised as the world’s most exported dark rum, a testament to their exceptional quality and global appeal.

In India, the brand has shown consistent growth, driven by increasing consumer demand for premium and authentic rums. As such, while Ron Barceló remains the company’s flagship brand, it is actively exploring opportunities to expand the imported rum portfolio by introducing premium selections from other Caribbean nations and Europe.

“Those with a keen palate and an adventurous approach to food and beverages are naturally drawn to products that stand out, and Barceló’s offerings excel at making a lasting impression,” Gurjas states.

The Pitfalls

Operating and expanding imported rum brands in India presents several challenges, primarily stemming from regulatory complexities, high tariffs and consumer perceptions.

India’s fragmented excise system, where each state has its own excise laws and cost structures, creates significant hurdles. “The lack of a uniform retail price across the country makes it difficult to standardise pricing strategies, often limiting growth opportunities for premium brands,” Gurjas notes.

Apart from this, the high import duties on alcoholic beverages inflate prices, making premium and luxury rums less accessible to a wider audience. This price disparity can also deter potential consumers from exploring high-quality imported rums. Further, many Indian consumers remain unaware of the variety, craftsmanship and premium quality of rums available globally. Rums are often perceived as an inferior, easy-to- drink and affordable spirit. This underappreciation of rum as a category hinders its potential growth in the premium and luxury segments.

Gurjas observes that the growth trajectory of rum in India also faces several bottlenecks, primarily rooted in consumption patterns and representation in the cocktail culture. In India, rum is predominantly perceived as a winter drink, often consumed with hot water. This seasonal and traditional consumption pattern limits rum’s appeal and year- round potential. Globally, rum is celebrated as a versatile summer spirit, best enjoyed in refreshing iced cocktails—a concept that has yet to gain widespread traction in India.

Rum has not been prominently featured in India’s evolving cocktail scene. Recent trends have favoured spirits like tequila, whisky, and gin, which have enjoyed strong representation in innovative cocktail creations by bartenders. “While rum is building significant momentum in global markets such as Spain, Brazil, and the United States, this trend is only gradually making its way in to India,” he adds.

Changing Perceptions

While challenges such as price sensitivity and limited awareness in certain regions exist, Barceló’s strong narrative, design and values position it as a brand that can successfully lead the premium rum segment in India.

Gurjas believes the Indian market has a vast potential for imported high-end rums. However, to leverage the growing premiumisation trend, there is a strong need to first educate the consumers about the versatility of the drink and reshape their perception through storytelling, brand-building initiatives, and highlighting the heritage and quality of imported rums like Barceló.

Creating awareness regarding rum’s compatibility with a variety of cocktails, especially refreshing and tropical ones, can also expand the spirit’s appeal. Partnering with bartenders and mixologists to introduce rum-based cocktails in bars and restaurants will help integrate rum into India’s cocktail culture. Competitions and training programmes can further drive innovation and adoption.

Enhancing Visibility

The company has initiated several on-ground initiatives that include exclusive events like rum and cigar evenings. These showcase the sophistication of Barceló rums, pairing them with fine cigars to highlight their complexity and appeal to premium consumers. It has also collaborated with the Dominican Republic Embassy to create a cultural connection that reinforces Barceló’s authenticity and heritage. Then, there are curated experiences like rum and dinner evenings to demonstrate the versatility of Barceló rums, pairing them with various cuisines to elevate the consumer’s appreciation of the brand’s quality.

Besides, the company has implemented digital initiatives to attract consumers and expand the market for imported rum brands in its portfolio. These include creating engaging content for social media platforms to educate consumers about the heritage, quality, awards and range of Barceló rums. Collaborations with digital publications, including Spiritz Magazine, also helps reach a wider audience. “These initiatives have been instrumental in building brand awareness, driving consumer engagement, and reinforcing the premium positioning of Barceló rums in the Indian market,” Gurjas says.

Future Outlook

The new generation is increasingly inclined to explore finer, premium experiences, and this includes a growing appreciation for high-quality, imported rums. With the growing experimentation among the younger consumers, flavoured and craft rums are well-positioned to capture their interest.

Gurjas believes offering versatility and appeal across demographics can be a game- changer for the rum sector in India. Additionally, craft rums with unique stories and small-batch production methods are set to gain traction in the domestic market.