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Industrias Licoreras de Guatemala chairman and president Roberto García-Botrán |
There’s no denying the global success story of super-premium rum brand Zacapa, and now spirits producer Industrias Licoreras de Guatemala is experiencing success with its new premium brand Botran, which was introduced to travel retail in 2010.
Botran is a 100,000-case rum brand in domestic and travel retail markets combined, and travel retail represents about 10% of total sales. It is currently distributed in airports across the Americas: New York, Miami, Central America and the Caribbean.
Botran’s strong brand awareness in the Americas region has seen leading operators such as UETA/Duty Free Americas list the product on the US/Mexican border. Although the brand is sold domestically on the US West Coast, including Los Angeles and San Francisco, it does not yet have an airport presence in these two cities.
Speaking to The Moodie Report at Botran’s first ever worldwide showing at the TFWA World Exhibition in October 2012, Industrias Licoreras de Guatemala chairman and president Roberto García-Botrán discussed the brand’s goals and ambitions.
“Travel retail is very important as a special window to the consumer,” said García-Botrán. “When any product is in an airport the consumer thinks it represents quality and is a very good product. Our strategy is to be present in the duty free channel, and it’s a good tool for us. You buy a bottle in New York, you take it to France, and people start talking about it. It enables us to convey the brand message, so it’s really important.
“10% of Botran’s sales are in travel retail, and we expect the trend to accelerate. We are committed to the channel and trust that major operators continue to see the opportunity and collaborate with us globally.
He continued: “The Cannes [TFWA World Exhibition] is really good for our brand Zacapa. It gives us great exposure – not just in Europe but also in Asia and the whole world. We expect the same for Botran. It is a different brand name but the quality is the same. This is the right way to get where we want to be.”
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Flagship brand Botran Solera 1893 |
Targeting the Asian market by 2015
The goal for the 2012 exhibition is to begin distribution in Europe, and by 2015, the company aims to be present in the Asian market, he said.
In the near term, the brand is expected to be listed in travel retail stores at Washington Dulles, Colombia, and soon Chile, Peru and Mexico.
Acknowledging that it is “really hard” to get into travel retail, García-Botrán said: “We saw the same thing with Zacapa – once you’re in, the sales start to come in.
“Last year travel retail was the best channel for the Zacapa brand and it’s still growing.”
By 2015, as well as achieving a presence in Asia, the goal is for Botran to be present and very active in all major markets and building a solid base of followers. Once exposed to the quality and taste, García-Botrán believes the volume will come and he expects a major acceleration.
“The US is a big opportunity for us. Miami, Manhattan, San Francisco – these are huge markets,” García-Botrán enthused. “In Europe, Botran has interesting opportunities in countries like France, Italy and the UK; the brand performs very well in Paris. The UK is also an amazing opportunity. At the moment we have a tiny base. Retailers in Russia are asking for our rum, and that is a relevant market for us. Therefore, we are looking at Russia, Europe and the US for future growth.
“Today, Latin America and Mexico are accelerating in sales terms.”
Asked if he had a message for travel retailers, García-Botrán replied: “Try our product, neat or with ice. Let us show you what we have.
“There are many types of rum on the market but our product makes a difference if you try it. It’s all about tasting and education.”
He continued: “We want to work in partnership with the operators. We are willing to invest money behind the brand and we believe in it. After we receive a new listing, we teach employees about the product in a master class education programme, and we will do sampling to gain visibility.
“We offer a good deal in terms of our price point, considering the heritage of the brand. It remains 100% owned by the Botran family.”
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Botran Reserva has a robust flavour |
Investment in white rum for 2013
One of the investments for Botran will be a new white rum for high-end cocktails, which will be introduced in January 2013.
Comparisons will always be made with Zacapa, but García-Botrán emphasises that they are two different products in different segments of the spirits category. “Zacapa is a sweeter, super-premium product and Botran is drier, premium rum in the middle tier. Botran reaches a broader spectrum of customers and appeals to Scotch drinkers.”
So what is García-Botrán’s outlook, given the uncertain state of the world economy? “The economy is difficult worldwide at this moment, and the US/Europe markets have been affected more. However, our product is increasing with double digits every year. It is going to be hard but in these countries we are doing well economically – including Latin America, Mexico, Panama, Colombia, Chile and Peru – where sales have been growing very well in the last five years. Sales are also growing in Venezuela. It’s hard to maintain growth at 30-35% but a double-digit increase is possible.”
Concluding his message for operators, García-Botrán stated: “As a family company, we are 100% behind our product. We are fully committed to grow our brand. Our biggest asset is our people; the commitment and passion they bring is unbelievable. They are proud of their heritage. Botran is a big hit for us.”
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Artisanal product: The Botran family has “an uncompromising dedication” to the production of premium rums |
About Rones Añejos Botran/Botran aged rums
The history of the Rones Añejos Botran is intimately linked to the co-founders of Industrias Licoreras de Guatemala.
At the beginning of the 20th century, five brothers of the Botran family left their native land in Burgos, Spain, to settle in Guatemala. The Botran family coined a novel technique to produce rums by recreating old European traditions, through the use of local natural resources and the development of leading-edge processes.
Sugarcane varieties that are valued for their sugar concentration are grown at the Tululá sugar mill, located on Guatemala’s Southern coast. The first pressing of this cane yields the concentrated sugar cane juice from which Botran aged rums are distilled.
Surrounded by the mountains of Guatemalan Highlands, the Botran ageing centre – located at 2,400 metres above sea-level – offers ideal climate conditions for high altitude ageing. There, master rum makers develop the slow Solera System ageing process.
To produce the characteristics expected from each aged rum, Botran rums rest in barrels that previously aged American whiskey, sherry and port. Some of the barrels are subjected to fire, to cause the wood to release scents such as vanilla, cocoa, nuts and fruit aromas.
For details, contact Frank Quinones, Global Commercial Director, CB Products Inc, e-mail frank.quinones@botran.com Visit www.botranrums.com
