In this article, we are going to discuss the 12 countries that produce the best rum in the world. You can skip our detailed analysis of the global rum market, the most popular rum brand in the world, the recent acquisition in the rum industry, and the rise of alcohol-free rum, and go directly to 5 Countries that Produce the Best Rum in the World.
Rum is arguably one of the earliest known spirits due to its simple production process. Its main ingredient, sugarcane, was first known to be fermented as early as 350 BC in India. The production of sugarcane increased over time as explorers discovered islands with the perfect growing climate.
Many of the best rums in the world are made in the Caribbean. Sugarcane was introduced to that part of the globe in the late 1400s by Europeans, and it quickly took root. Colonialists started sugar plantations that used forced labor by enslaved people from Africa, and from these plantations came rum. The spirit’s popularity quickly spread to Colonial North America. It is estimated that prior to the American Revolutionary War, the men and women of the American colonies were drinking an average of three imperial gallons of rum each year.
Global Rum Market:
According to Future Market Insights, the global rum market is estimated at $17.4 billion in 2023 and is expected to reach $24.5 billion by 2033, with a CAGR of 3.5% during the forecast period.
Consumer perception of the rum category has evolved in recent years. While rum sales are still dominated by major producers, consumer preferences are shifting away from value options and towards an appreciation for craft and aged rums. Rum also provides a key function in cocktail culture. While the spirit is a staple of on-premise tiki bars, rum is also one of the only spirits for which it’s common to blend multiple varieties in the same cocktail. According to Bacardí’s 2022 Cocktail Trends Report, four of the top-10 best-selling cocktails are rum drinks, making the spirit a must-have for all on-premise programs.
Most Popular Rum Brand in the World:
The Filipino brand Tanduay bested all others to claim the top spot of The Spirits Business ranking of the top 10 best-selling rums in the world. The rum business of tycoon Lucio Tan’s LT Group sold 27.4 million nine-liter cases in 2022, up 16.1% from the 23.6 million cases sold in 2021. For comparison, the world’s No. 2 rum brand, Bacardí, sold 23.6 million cases last year, including the brands in its ready-to-drink portfolio. That means Tanduay sold nearly 4 million cases more than its closest rival.
In a release, the company attributed the brand’s robust growth to its aggressive international expansion, the rise of cocktail culture, and its diverse product offerings. Besides its home country of the Philippines, Tanduay rum is present in 18 international markets as of July 2023. The brand has partnered with leading international spirits distributors to make its products available in different countries and has tapped leading bartenders to help promote its offerings.
In 2022, Tanduay’s consolidated revenue reached approximately $560 million, a 26% increase from the previous year.
Recent Acquisition in the Rum Industry:
Rum’s growth has also been reflected in the merger and acquisition space in the past year. It was announced earlier this year that Brown-Forman Corporation (NYSE:BF-B) had completed the acquisition of the Diplomático Rum brand and related assets from Destillers United Group S.L. (Spain), for an estimated $725 million. The spirits giant announced its agreement to purchase the brand in October 2022, giving it an entry into the growing super-premium rum category.
As part of the acquisition, Brown-Forman Corporation (NYSE:BF-B) added an aging, bottling, and shipping production facility located in Panama to the company. Destillers United Group S.L. will continue to produce and age the unique, carefully-crafted, and complex Diplomático Rum in their original distillery at the foot of the Andes mountains.
Stocks of Brown-Forman Corporation (NYSE:BF-B) were held by 30 hedge funds at the end of Q2 in the Insider Monkey database, with Fundsmith LLP holding the largest stake of over 12.19 million shares, valued at $814.41 million. The Brown-Forman Corporation (NYSE:BF-B) ranks among the 12 Best Alcohol Stocks to Own According to Hedge Funds.
The Rise of Alcohol-Free Rum:
The global low and no-alcohol consumer trend is a significant shift in the drinks industry, driven by increasingly health-conscious consumers seeking alternatives to traditional alcoholic beverages. Millennials and Generation Z are the main insurgents, driving a transformation in choice and demanding more from their drinks. These younger generations are adopting a healthier lifestyle and reaping the benefits of going alcohol-free – but they’re not the only ones.
From fitness fans and healthy lifestylers to a renaissance in older living, knowing what you’re putting into your body is now a key priority. As we mentioned in our article – Gen Z’s 25 Favorite Brands in 2023 – these young consumers are also a more health-conscious generation and a growing share of them is outright turning away from alcohol. In 2022, 38% of Gen Z were buying more non-alcoholic beverages than in the previous year.
Several industry players have realized that the no-alcohol trend is here to stay and are coming up with innovative solutions to keep their current consumer base engaged, along with attracting a new generation of drinkers – and rum has been no exception.
Owned by Diageo plc (NYSE:DEO), the iconic Captain Morgan rum brand unveiled Captain Morgan Spiced Gold 0.0% in August, an alcohol-free alternative to the famous Original Spiced Gold, offering a deliciously spiced flavor profile. Following the successful launch of Guinness 0.0%, Tanqueray 0.0%, and Gordons 0.0% over the past few years, Captain Morgan Spiced Gold 0.0% brings further choice to the market as the latest brand, and first dark spirit, to join Diageo plc (NYSE:DEO)’s alcohol-free portfolio. With 22.9 million cases sold worldwide in 2022, Captain Morgan is counted among the Most Popular Spirits in the World.
Initially launched in Great Britain in September, followed by Estonia, Lithuania, and Latvia later this year before further roll out across Europe in 2024, Captain Morgan Spiced Gold 0.0% Alcohol Free Rum has an RRP of $18.99 in Great Britain.
Warren Buffett initiated a position in Diageo plc (NYSE:DEO) in the first quarter of 2023 with 227,750 shares worth $39.510 million and his position in the company remained unchanged in the second quarter. In Q2, Diageo represented 0.1% of Berkshire Hathaway’s portfolio. The most prominent stakeholder in the company in Q2 was Markel Gayner Asset Management with 1.35 million shares, worth $234.23 million.
With that said, here are the Countries with the Best Rum in the World.
Methodology:
To collect data for this article, we have referred to a number of sources such as Illegal Tender Rum Co., Forbes, Reddit etc., looking for Countries that Produce the Best Rum. We picked countries that appeared at least twice in these sources, assigned them a score based on their number of appearances, and ranked them accordingly. When two countries had the same score, we ranked them by the size of their rum markets.
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12. Puerto Rico
Insider Monkey Score: 2
Puerto Rico is often called the Rum Capital of the World and for good reason. Not only is rum an important export of the island, the industry also employs lots of people to make this distinct drink. According to Puerto Rico’s Department of Economic Development and Commerce, the island’s rum industry generates $300 million annually and provides 700 jobs in distilleries.
Bacardí, one of the world’s most popular rum brands, is produced in Puerto Rico.
Puerto Rico produces some of the Best Rums in the World.
11. Australia
Insider Monkey Score: 2
From the convict colonies and cane-cutters to the current craft spirit empire, rum has played a big part in Australia’s cups. The country probably wouldn’t even exist without rum. A lack of coinage in the early days of the colony of New South Wales meant that bottles of rum were used as official currency, as well as a way to entice unruly convicts to work.
Whether it’s spiced, premium, or otherwise, The Land Down Under’s status as one of the few countries capable of making cultivated rum – thanks to its ideal sugarcane-growing climate and large sugarcane crop – means that it’s uniquely poised to take advantage of the spirit’s popularity boom. Australia is counted among the Best Rum Producing Countries in 2023.
10. United States of America
Insider Monkey Score: 2
While American craft beer and whiskey gobbled up most of the headlines over the last several years, rum – the spirit that first captured the nation’s heart centuries ago – has quietly reingratiated itself to a growing number of distillers. For the first time since the eighteenth century, you can once again find hundreds of distilleries producing rum across the United States.
The American craft rum industry has experienced significant growth as more and more people discover these artisanal distillers’ unique and high-quality offerings. The United States ranks among the Largest Rum Exporting Countries.
9. India
Insider Monkey Score: 2
Despite not being exactly world famous for its rum, India is the country that drinks the most rum in the world, both in terms of consumption per capita and in terms of most rum drunk each year. India is one of the fastest-growing alcoholic beverages markets globally, with an estimated market size of $52.5 billion in 2020, according to the Indian Council for Research on International Economic Relations. Rum contributes 11% to the total volume, mainly because it’s cheap and easily available.
Old Monk has been the most popular rum brand in the South Asian nation for decades. This inexpensive, sweet dark spirit has come to define what rum should taste like for generations of Indians.
India sits among Largest Rum Producing Countries.
8. Trinidad
Insider Monkey Score: 3
Trinidad produces massive amounts of mainly light rums from column stills and has an extensive export trade. The largest rum brand on the island is Angostura, producer of the famous cocktail bitters, however many well-known rum brands have a portion of Trinidadian rum in their blends. Today, rum accompanies the great life celebrations for Trinidadians, especially during Carnival, an important and happy event in the region.
Trinidad sits among the Countries that Specialize in Rum.
7. Philippines
Insider Monkey Score: 3
The Philippines’ vibrant sugar industry makes it one of the world’s best rum producing countries. Boasting smooth and complex white and gold rum, the country produces the highest-selling brand in the world – Tanduay. You may not think of South-East Asia when we say rum, but the quality of the spirit made in the Philippines shows that the best rum isn’t found only in the West Indies.
The Philippines has the third-largest rum market in the world, after India and the United States.
6. Haiti
Insider Monkey Score: 4
Rum’s place in Caribbean culture is well known, but little is said about Haitian bottlings, despite the country housing more than 500 local distilleries – arguably more than any other country in the region. This booming DIY distilling scene makes Haiti home to some of the most diverse rum production in the world.
Rhum Barbancourt is rum produced from pure sugar cane juice and bottled in Haiti by Société du Rhum Barbancourt. The distillery is one of Haiti’s oldest institutions and its rum is the country’s most famous export, widely regarded as among the finest rums in the world for over 150 years.
Haiti ranks 6th in our list of Top Rum Producing Countries.
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Disclosure: None. 12 Countries that Produce the Best Rum in the World is originally published on Insider Monkey.
