Source: http://worldcityweb.com/home/MIA/publications/magazine/21/679/

Taking a Nicaraguan rum to the U.S. market

by Joachim Bamrud

Compania Licorera de Nicaragua survived the civil war in the 1970s and the economic disaster of the Sandinista regime in the 1980s. It expanded with much success into neighboring markets in Central America and six years ago, it set up a Miami office to expand into more international markets.

Now, the company is eyeing further growth in the United States and Europe.

“We’ve been spending most of the last five years focusing on consolidating business in South Florida, growing the brand double-digit year on year,” says Robert Collins, managing director of Rum Marketing International, the Miami company that markets Flor de Cana internationally. “The idea now is to replicate the South Florida business model and move into new markets within the United States.”

Flor de Cana positions itself as a highend rum, appealing to those who consume aged rums. That means tying the brand to the appropriate restaurants and promotional events, organizing tasting events and advertising in select media.

Collins declined to provide specific figures, noting that Compania Licorera de Nicaragua is owned by privately-held Grupo Pellas. But he confirmed that the company had registered solid growth last year in terms of international sales of Flor de Cana.

“There is a [growing] consumer preference for rum in general worldwide,” he says. “We are enjoying a growth overall in most markets.”

This year, Collins expects another strong increase in sales.

Apart from South Florida, key international markets include Italy, Costa Rica and Honduras.

In Italy and Spain the two key markets in terms of rum consumption in Europe consumer preference for aged rum is very notable, he says.

While sales have been good in Italy double-digit Spain is still a new market for Flor de Cana, but Collins has high expectations as a result of adding a new partner there. Other European markets with good potential for the Nicaraguan rum are Germany and Scandinavia.

Other markets where Flor de Cana is expanding through recent distribution agreements include Canada, Colombia and Ecuador.

Meanwhile, closer to home, Costa Rica and Honduras have proven solid sales markets.

“We have very nice growth coming out of those markets,” Collins says.

And Costa Rica helps promote the brand beyond its borders, he points out. “Costa Rica serves as an introductory platform for many US, Canadian and European tourists,” he says.

Also Mexico is a fast-growing market for Flor de Cana.

So why did the Nicaraguans set up the international office in Miami?

“Having an office in Miami made a lot of sense in terms of geographical location vis—vis Europe, Central America and Mexico and South America and the Caribbean,” Collins says. “And Miami is our strongest market in the United States.”