Rum is one of the most popular spirits in the world, known for its sweet and smooth flavor profile. But is it an affordable spirit or does it come with a heftier price tag? The answer depends on several factors.
What is Rum?
Rum is a distilled alcoholic spirit made from sugarcane byproducts like molasses or sugarcane juice. The molasses or juice is fermented into alcohol, then distilled to concentrate the alcohol content. Rum typically contains between 40-50% alcohol by volume (80-100 proof).
Unlike other spirits like whiskey or brandy that are aged in wooden barrels, most rum is aged in stainless steel tanks. However, some premium rums are aged for years in wooden barrels, usually old bourbon casks, which imparts more complex flavors and a golden or dark color to the rum.
Rum Categories
There are several broad categories of rum that determine quality level and price:
White/Silver/Light Rum
The most inexpensive and widely available type of rum. It is unaged and crystal clear in color. Light bodied with subtle flavor, used mainly for cocktails and mixed drinks.
Gold/Amber/Dark Rum
Aged for a short time in wooden barrels to impart more color, body and flavor. Still versatile for cocktails but also sippable on its own.
Black/Spiced Rum
Blended with flavors and spices like molasses, caramel, vanilla, cinnamon etc. Full-bodied with pronounced flavor, used in tiki cocktails or sipped.
Premium Aged Rum
Aged for extended periods (8 years or more) in oak barrels. Deep golden to dark color with complex concentrated flavor enjoyed neat or on the rocks.
Flavored Rum
Infused with fruit, spices, or other flavors like coconut, mango, passionfruit, vanilla etc. Mainly used for cocktails.
Overproof Rum
Higher alcohol content rum typically 57% ABV/114 proof and above. Only for mixed drinks, not sipping.
Factors that Determine Rum Price
There are several key factors that determine the price of rum:
Method of Production
More labor intensive traditional methods like pot still distillation typically produce more flavorful rum but at a higher production cost. More automated methods like column still distillation bring price down but reduce flavor.
Age
Older aged rums are more expensive to produce because aging means holding inventory in barrels for years with some product loss. Light unaged rums are cheapest while premium aged rums like 12+ years are most expensive.
Source of Sugarcane
Single estate rum made from sugar cane grown on one estate, like a single malt scotch, is rare and costs more. Rum made from cheaper molasses is more affordable.
Country/Region of Origin
Rums from certain renowned regions like Cuba, Jamaica, Puerto Rico, Martinique, or Barbados can demand a premium price.
Brand
Established premium brands and labels command loyalty and higher prices based on reputation and perceived quality.
Additives & Flavors
Spiced rums with added flavors, sugars, and colors are more expensive to produce so cost more. A pure, unaltered rum is simpler and cheaper.
Alcohol Content
Higher proof rums have more raw material input cost so tend to cost more per volume.
Packaging & Marketing
Elaborate bottles and packaging raise the overall product cost. Premium branding and marketing also gets passed on to consumers through pricing.
Average Rum Prices by Category
Here are rough average price ranges for 750ml bottles of rum by category:
| Rum Category | Average Price Range |
|---|---|
| White/Light Rum | $10 – $20 |
| Gold/Amber Rum | $15 – $25 |
| Dark/Black Rum | $18 – $30 |
| Spiced Rum | $20 – $35 |
| Aged/Premium Rum | $25 – $100+ |
| Flavored Rum | $15 – $30 |
| Overproof Rum | $20 – $40 |
Cheap Rums Under $20
At the lower end, you can find many light, silver and white rums like Bacardi Superior, Don Q Cristal, Cruzan Estate Light rum for around $10-15 per 750ml bottle. These make great well/rail options for bars and cocktails.
Some moderately priced gold rums like Appleton Estate Signature and Kirk & Sweeney 12 Year are $15-25 and offer a bit more aged flavor that’s still mixable.
Moderate Price Rums $20-$40
In the mid-range price points, you start getting into some of the more complex flavored spiced rums like Sailor Jerry ($20-25) and Kraken Black Spiced Rum ($18-22).
This range also includes quality aged rums like El Dorado 12 Year ($30-35), Doorly’s 12 Year ($25-30) and Ron Zacapa 23 Year ($40-45) that can be sipped neat.
Premium Rums $40-$100+
Here you’ll find most of the oldest, rarest rums from esteemed regions. Examples are Appleton Estate 21 Year ($90-100), Diplomatico Reserva Exclusiva 12 Year ($40-55), and Ron Zacapa XO ($100-130).
While certainly on the pricier side, these rums offer a truly premium sipping experience worth the occasional splurge for rum aficionados.
Is Rum Generally Considered Cheap or Expensive?
Overall rum tends to have a mid-range affordability factor compared to other spirits. While high-end aged premium rums can get very expensive, there are also a large number of mixable cheap white and gold rums under $20. According to Nielsen data, the average price consumers paid for a 750ml bottle of rum in 2020 was $17.73, up from $16.78 in 2019.
This compares reasonably to averages of $26.78 for bourbon, $16.19 for vodka, and $36.93 for scotch whisky in 2020. So while not the absolute cheapest spirit, rum offers good value and quality at the average price points many consumers pay.
Is Rum Considered Affordable or Luxury?
Rum has offerings at both ends of the affordability spectrum. Light mixing rums are very affordable day-to-day options for cocktails, while sipping rums provide a sense of luxury.
Affordable Everyday Rums
Standard white/silver/light rums like those from Bacardi, Don Q, and Cruzan are extremely affordable at $10-15 a bottle. They have mild flavor profiles designed to let other cocktail ingredients shine through, making them quintessential mixing rums for daiquiris, mojitos, or cola.
They are prolific behind bars for putting in rum and cokes or other simple highballs. Their affordability also makes them easy choices for party punches or cooking with rum at home.
Luxury Sipping Rums
At the other end, aged premium rums from esteemed regions offer a refined luxury experience. Sipping something like Appleton 21 Year or Ron Zacapa XO neat or on the rocks provides complex flavors and a warm, lingering finish.
The extensive barrel aging and limited quantities make these rums special occasion purchases for true rum connoisseurs or as gifts. They offer prestige similar to fine scotch or Cognac.
Factors that Change Rum’s Affordability
Certain factors can shift the balance of rum prices and change affordability perceptions:
New Brands & Competition
As more brands enter the rum market with lower cost offerings it increases choice and affordability for consumers.
Premiumization Trend
Increasing demand for aged, super-premium rums drives those prices up over time and positions them as more luxury items.
Economic Conditions
During downturns, consumers gravitate to cheaper options which improves affordability perception of value/well rums.
Taxes
Higher liquor taxes imposed in certain regions makes rum less affordable compared to areas with lower taxes.
Trade Policies
Reduced tariffs on imported rums can improve affordability while increased tariffs drive prices up.
Geographic Trends
Rum growing in popularity in a market means more demand and higher prices over time as it evolves from novelty to staple.
Conclusion
Rum offers something for every budget. For about $15 dollars or less, you can enjoy a quality light rum for cocktails or cooking. At the $20-40 range, flavored and aged rums provide more unique flavors to sip or mix. And premium rums deliver a refined drinking experience comparable to top-shelf spirits, but at a cost.
While prices are rising, especially for aged expressions, rum maintains a good balance of affordable mixing options and attainable indulgences. Factors like production costs, regulations, consumer trends and economic conditions continue to shape rum’s positioning as an affordable spirit with premium potential.
With such diversity, rum provides many options for any occasion that fit your budget and tastes.