At The Belmont Agency, we closely follow spirits and beer branding trends and how cultural cues can elevate positioning. Recently, we've analyzed how tequila carved out a leading niche in the US and how rum has runway to follow suit.

Over the past five years, tequila has usurped vodka as America's spirit of choice. Sales grew over 40% with high-end aged expressions driving growth. So how did tequila spark this craze?

For one, Mexico's proximity and cultural influence expanded the base of tequila drinkers. With Hispanic consumers comprising over 20% of the US population (and growing), the appetite for agave spirits expanded naturally.

Tequila also rode broader premiumization waves. As drinkers traded up across categories, brands capitalized by introducing reposados, añejos and cristalinos. These sipping tequilas expanded how consumers interacted with the spirit beyond margarita mixers.

Additionally, celebrity owners like The Rock and Kendall Jenner generated buzz, particularly among younger demographics. All of this exposure primed tequila for explosive popularity.

However, tequila's success also shows the power of brand storytelling in cementing a spirit's cultural appeal. What sets tequila apart is how brands weave the drink's legacy in Jalisco, from generations of family distillers to the terroir of agave plants. This sense of tradition makes tequila feel special.

Beer brand Red Stripe demonstrates similar success by leveraging cultural storytelling. Despite being Jamaican to the core, Red Stripe expanded its reach by launching innovative products like ready-to-drink rum cocktails capturing the island’s essence.

Rum is now poised for a branding reinvention of its own. Despite rum's entwined history in the Caribbean, it has yet to enjoy tequila levels of cachet and connoisseurship. However, the rising interest in cocktails and cane spirits signals opportunity.

For rum to thrive, brands should embrace the drink's roots while shedding remnants of its darker legacies.

The storied diversity of islands and styles allows for emphasis on local provenance. From Barbados estates to Jamaican pot stills, this frames rum as a vehicle for celebrating culture.

Premium rums must also break from elemental flavors and lean into aged, cask-finished expressions. Expanding the vocabulary for discerning rum drinking invites consumers to sip, not just mix. We love the “rum reimagined” brand positioning of Ciara-backed rum brand, Ten To One.

This also means confronting troubling plantation imagery that lingers in some rum marketing. Branding should proudly highlight the agricultural origins (see Duppy Share) of sugarcane while making space for more uplifting cultural narratives.

Rum also contains potential for innovation, from celebrity partnerships to pre-made cocktails meeting ready-to-drink trends. However, success ultimately hinges on how compellingly brands capture rum's essence. The Caribbean's dynamism provides plenty of storytelling fodder.

At TBA, we know strategic positioning and identity development can transform category perception. If tequila and Red Stripe can redefine themselves through cultural storytelling, rum can certainly expand its narrative. The time to elevate rum's positioning is now.

This is an opinion-based editorial written and researched by the TBA Strategic Insights team.

For any spirits or beer brands seeking sharper strategy, our team would love to collaborate. Let's have a conversation on the futures we can manifest together.

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