Allied Domecq Debuts Fusion Rum with $20 Million Campaign

Allied Domecq Spirits & Wine North America has launched a new Fusion Rum and plans for a major promotion and advertising campaign this fall. With the launch, the spirits giant is creating a whole new category aimed at a young set of imbibers likely to try new brands.

This month, the rum, called Kuya, will be introduced in 18 major markets across the U.S., with a national rollout planned for September. Thousands of summer "React to the Beat" on-premise sampling events, a full range of promotional materials and a multi-million dollar print and electronic ad campaign are set to break this fall. In what is Allied Domecq's largest global introduction and the largest U.S. marketing investment to date, spending on the campaign will be in excess of $20 million through August 2004.

"One of the key drivers of summer activity is more than 1,000 on-premise and off-premise sampling events across all markets for consumers," Susan Kilgore, senior brand manager for Kuya, said yesterday.

Kuya, from the makers of Kahlua, combines imported rums, natural spices and citrus flavor and is best used when mixed with cola. Allied Domecq tested the new beverage on consumers in in-home trials which indicated purchase intent as high as 91%. "Sampling become critical to get the product into the mouths of consumers because we know once they try it they will buy it," Kilgore said.

Kick-off parties for distributors will be held in the 18 markets some in states like Florida, California, Illinois and New York. While the promotions will vary by market, in Florida, a branded tour bus will leave from Miami and weave up the Florida coast carrying promotional and educational materials. The mobile marketing vehicle will stop to meet with distributors, and in some cases, consumers.

Bartender education is part of the mix to help reach the target—21-to-29 year olds. "This will be geared to win over bartenders to become Kuya advocates," Kilgore said.

The rum sector makes up 12.7% of the $42 billion U.S. spirits market, with sales growing at 4.1% over last year. Specialty and spiced rums are up by 7.5% over the same period, according to statistics released by AD.

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