From Obscurity to Global Brand

Ron Zacapa was created in 1976 by the Botran family and Industrias Licoreras de Guatemala to mark the centennial of the town of Zacapa. Distilled from virgin sugar cane honey rather than molasses, the rum matured in bourbon, sherry, and cognac barrels in the highlands at more than 7,500 feet.

Two decades later, Ron Zacapa made its U.S. debut under the ultimate commercial umbrella: imported by Shaw Ross International and distributed by Southern Wine & Spirits. This formidable pairing granted the brand an unrivaled launchpad—combining Shaw Ross’s elite brand-building expertise with Southern’s colossal market dominance. To the distiller’s disappointment, after years of effort and in spite of their magnificent competitive advantage, Ron Zacapa remained in obscurity.

In 2005, Industrias Licoreras de Guatemala partnered with KIWI Strategic to give US consumers one last chance to discover their beloved and iconic rum. A French bottle designer was summoned to design a new bottle, and KIWI created a divergent strategy that daringly positioned Zacapa as a super premium sipping rum—at the time rum was used in cocktails as a mixer. The norm was for brands to have a signature cocktail featuring their rum at bars and restaurants. Zacapa, a super premium rum and the best rum in the world, did not follow norms. No cocktail needed. One Food and Wine journalist said it best…

Keep Coke miles away from my Ron Zacapa.Food and Wine

Strategy-led communication defined Zacapa as “The Best Rum in the World” and advertising consistently focused on reinforcing its unique positioning with its “neat and on-the-rocks” message. Through research, a list of journalists and prominent spirits experts were selected to receive a bottle of Zacapa with a note requesting feedback. From the Wall Street Journal, to spirits magazines, restaurateurs, and top bartenders around the country accepted the offer. Soon reviews started arriving and the positive feedback was overwhelming: Zacapa was a super premium rum to be enjoyed neat or on the rocks. Experts loved the packaging, the bottle, but most of all, they loved the rum. Marketing and public relations initiatives included making sure upscale hotels, clubs and restaurants displayed the product on their shelves. The strategy included trade events, tastings and activities for restaurants, liquor stores, and the distributor’s sales teams. The launch was supported by print advertising as well as billboards strategically positioned in key Miami and New York locations—including Times Square.

On February 8, 2005, Ron Zacapa’s magnificent US launch was held at the Ritz Carlton in Coconut Grove, Florida, attended by journalists, key figures in the community, and just as important—Zacapa’s sales team and trade professionals. Along with socialites, and an extraordinary group of local and national guests—the perfect environment for the Botran family, and Industrias Licoreras de Guatemala to celebrate Ron Zacapa’s triumphant introduction.

Less than one year after Zacapa’s launch, its relevance continued to climb and the rum industry began to shift. KIWI followed through by continuing to reinforce Zacapa’s disruptive brand position—no signature cocktail existed. It was exclusively served neat and on the rocks. Zacapa was frequently requested at fundraisers, art gallery and museum exhibits, golf and tennis tournaments, even Bloomingdale’s made it part of their fashion shows. Like a top designer brand, Zacapa Rum elevated the events and activities it sponsored, and organizations loved being associated with the brand. It became evident that Zacapa was in a class of one.

Diageo, the world’s leading spirits company, quickly noticed. In 2008 Diageo took over global distribution of Ron Zacapa. Three years later it acquired a 50% controlling stake in the brand. KIWI’s divergent strategy had transformed Zacapa into a strategic asset—and the world’s leading spirits company wanted to own part of it.