Rum sales fall due to Beryl

J. Wray & Nephew Limited, JWN, the Jamaican operations of Campari Group, recorded €26.5 million ($4.5 billion) in sales for the third quarter of 2024.

The revenue flows reflected a decline of 20 per cent year on year due to Hurricane Beryl disruptions.

Campari said its Jamaican rum sales, mainly comprised of the Appleton and Wray & Nephew brands, dropped in the third quarter across all key markets, including the United States, United Kingdom and Jamaica. The Italian spirits company expects the subdued performance to continue into the fourth quarter.

“Persistent challenges in the Americas, mainly in selected categories in the United States, and an extraordinary impact of the hurricane in Jamaica in the third quarter of the year, [led] to supply shortages in rum portfolio for both the local and the export markets,” Campari said.

Over nine months, JWN generated €105.5 million ($17.9 billion) in sales, down one per cent year on year. Sales in the period were supported by price increases, which offset some of the impact on volumes. The hurricane which hit in July led to supply chain disruptions for Jamaican rums, the company explained. Despite this drop, the Jamaican operations still accounted for the same 4.6 per cent share of Campari Group sales as it did a year ago.

Campari Group’s total sales rose by 2,1 per cent to €2.28 billion over nine months. This was mainly driven by strong performances in other regions and categories, such as aperitifs and tequila, offsetting the downturn in rum.

Although there were no major promotional activities specific to the Jamaican market during this period, the group’s pricing strategy, particularly for rums and the Campari brand, helped to mitigate the full impact of the volume drop, the company stated. Globally, Campari’s wider focus included integrating its recently acquired Courvoisier Cognac brand into the group’s operation.

Group profit over nine months fell by 6.1 per cent €417.2 million, reflecting the macroeconomic pressures, higher costs, and bad weather, Campari said.

steven.jackson@gleanerjm.com