Taking on challenges is just for the braves, interview with Carlos Esquivel PILSA Rums

Revalue rum in the world

In the past, rum was considered the ugly duckling among spirits. Why? Because it was the last resource drink. For example, when I was in college, we all chipped in to buy a big bottle of rum.

It was also a beverage that was associated with piracy. And on the other hand, the one that was considered a status icon is whisky. Back in college, if you drank whisky, you would have been seen as a sophisticated person. Then, years went by, and I also worked as a salesman for spirits in duty-free stores in Central America. I realized that whisky was indeed a status spirit, but when I started learning about production, which was the difference between whisky and rum, from the production perspective? I realized it was just the raw material. Everything else, fermentation, distillation, aging, is the same. So, why was rum being looked down on? Why was whisky always seen as the pretty girl of the party? So, my crusade became changing the face of Panama’s rum. And, to create quality worth exporting to prove that in Panama, we can make rums just as grand as any premium rum; and even better than any other prestigious whisky. 

What does PILSA do? 

We are like the orchestra behind a very famous singer. In videos, you always see the lead singer and never notice the musicians. That’s who we are. Our business is focused mainly on producing private labels and rum in bulk. Nowadays, we are behind in more than fifty rum references across the world. We also sell rum in bulk. It is also a valuable asset of our business. We provide everything from the raw cane distillate to young rums, mid-age rum, and super-premium collections, some as old as 25, 30, and even 35 years.   

Time in a barrel

When we started, we began with a small distillery, making fresh rums. But also investing in rum reserves from Panama, Central America, and the Caribbean. That allowed us to start with some previously aged collections since the beginning. Everyone must understand that when I say that we had aged rums, it doesn’t mean that I had my own aged rums produced by ourselves. It means that we had collections bought elsewhere and that we adapted to match our profiles and criteria. 

In a way, we have created trends with our rums in some markets. Some brands feel proud, just as we are, of saying yes, we are the producers. And there are others with sensitive aspects and agreements that we are not allowed to acknowledge. But, so far, the best satisfaction this business has given me is that I can go to almost any bar in the world and see one of my kids in the bar. And, when you ask the bartender, “Hey, what do you think about this rum?” they say something like: It’s great. It is a fantastic work tool to create cocktails, and some even have them straight. And you can’t put a price on that. That is the greatest reward we can get.

Why take on the challenge of changing rum’s reputation across the world? 

We started because of two reasons, first, because we saw an opportunity and a necessity. And second, because we liked the challenge to change the face of Panama’s rum and rum in general. And exponentiate Panama as a rum premium producer. 

Rum in 2021

In recent years, yes, rum has gained recognition. People talk about Premium rums. High-end bars, top-level mixology, restaurants, and private clubs start having their rum reservoirs. However, despite the work we have done, we have barely covered 1% of rum’s world market. So, ok, this is like a colonization task. The first explorers arrived and planted their flags. Now, it is time to populate the place. So, we depend a lot on other producers with enough vision, and quite frankly the guts, to produce quality rums. Because having just one company is not enough for the whole mission. So, we need other producers to rise to the challenge of wanting to produce quality rums. Many are already doing it, and thanks to them, rum has the place it does now. We contributed with our sand grain, but it is an endeavor for all brands. But well, there are producers of all sorts. Some say I don’t care about having a quality product; I want to keep selling the millions of boxes I am selling now. And that’s ok! that is their business model. Ours, however, is more focused on everything related to Premium rums.  

Oh, but a client requests a young rum? Yes, I can do it. But, most likely, the quality of that young rum is much better than the one from the competence. 

What is next for PILSA?

What comes next is growing further within the category of rums; because we are still just one percent within Premium rums. 

I think that if in the upcoming decade we take upon five to eight percent of the market of global rum sale, I’ll be satisfied.

Tales of the cocktail and mixology boom

We were on several Tales of the Cocktail. We participated with our brand, Don Pancho Orígenes. And those kinds of events, just as rum festivals like the ones from Miami, Spain, Germany, Polland, and others, are initiatives that have helped in a way to elevate the category and raise awareness. There are many enthusiasts craving to know a bit more. And honestly, rum had been an unknown spirit. Most people just knew that you could mix it with coke, lemon, or in a daiquiri. And that’s it. These kinds of events have served to exponentiate the goods rum has to explore rum’s many categories. 

How is rum different from other spirits?

Rum’s best advantage is that it is distilled, in many places, so you will always find the perfect rum for your palate. There’s this saying that to each its own, the same thing goes for rum. There will always be a rum to meet your taste. Maybe you won’t like one of mine, but you enjoy the one from my competence. That’s perfect. It doesn’t matter if it is not mine. You are drinking rum; that is a victory.  

PILSA’s future goals

Promote quality rum’s culture and the honesty behind producing and labeling products. I think the public deserves respect. Consumers honor us by choosing our products and paying the money it takes to get our rum. The least we can do is give them the age of the product claims. Create it under the highest quality standards and the recognition of distinguished producers. 

The value of the Master Blender

Scotland took the lead and began talking about their Master Blenders for their whiskeys. As for the rum, they are also the key player.  

Now, what makes a good Master Blender, and what makes an exceptional Master Blender? A good Master Blender is the one who has the sensibility to understand that among his rum inventory, he has to choose different barrels to be able to bottle a profile that is always the same. The same profile. All the time. That takes sensitive skills, chef-like skills that allow you to produce the same flavor over and over again, right? That’s what a good Master Blender does. But, what does an exceptional Master Blender does? A one-of-a-kind Master Blender, like our own Master Blender, Don Pancho Fernández, has more than 50 years in this industry, but not just making just one product. Some brands have been working with their Rum Masters for sixty years, and I take my hat off to them and pay my respects, but they have produced the same product for sixty years, in this case, someone like Don Pancho has under his belt over 120 products he has created in his life. It is not the same to choose from previously selected same profile barrels to create a single product than knowing that, from your inventory, you have to create a newly minted rum today. And it can not resemble any of the ones you have made before. That’s the difference. And I believe that the most valuable proof of the quality of the products PILSA Rums creates is that about seven years ago, during Miami’s Rum Renaissance, three products won a gold medal, the three of them were ours, and all of them were 21 years rums. And none resembled the other. How do you make three products all the same age and from the same background, not only win an award but also don’t resemble each other? That’s the main difference. 

PILSA after COVID-19

The pandemic opened a new way of doing businesses that had always been there but didn’t receive attention until now, which is the business of internet sales. So, yes, many nightclubs closed, many bars and restaurants are gone, a lot of people lost their jobs, many people lost their investments, but in a way, the business of liquor didn’t lose as much because people kept drinking from home. So, what people couldn’t get on the grocery they would order online. Today, the internet is the way of doing business. You have to click on your phone or tablet, see something, you buy it, and most likely, it will be on your doorstep in the next three days. So, during the pandemic, we kept on aging and producing reserved rums because, in a way, we need to anticipate the success of a brand for today and the next 20 to 25 years. Because, what happens, imagine today a brand buys from me 10,000 liters a year, but if this brand succeeds, maybe in 20 years, they will be purchasing half a million liters. So, I have to make sure that 20 years from now, I will have enough stock to supply their demand. Now, imagine having more than 50 brands.

How do PILSA’s services operate?

We keep on producing rums all year long. We do not take operational breaks anymore. We used to stop for the holidays and other seasons, but nowadays the operation is constantly running. It is not just producing, is aging, is mixing, is having enough profiles to supply our clients demands. If we were painters, I would have all the possible combinations to own a color palette that allows my clients to say:  I want this, and these, and those, and that. And still, that none resembles the other. 

Design you rum

We have different types of clients. There is the kind of client that knows what they want. That has a brand concept and even has the bottle and label design. In those cases, they are the ones that say- I want my rum to have such age, such scent, such profile. I want it like this and that-. Those clients are easy to deal with; but, some clients come and say –Sir, I want to have my rum, I don’t have the faintest idea of where am I going with it, but I want to have a rum. That is where PILSA’s experience comes in to assess the client and guide them along from the basics like which market are you appealing to?, What kind of audience would you like to reach? And then, we create a questionary for the client to develop a solution and a profile that perfectly fits their needs. As an additional service, PILSA can provide them with the bottom, the lid, and everything needed so that the client doesn’t have to go to different places searching for the things they need for their final product. We are a one-stop-shop. You come with us, and we will assess you in everything your brand needs. Not just rum. Are there any other companies that sell rum, like PILSA? Yes, there are. There are a couple around the world. But so far, the only one that offers everything, from A to Z, regarding services is us. We offer lid, bottle, bottling, tags, distribution, logistics, storage, everything.

Quality Compromise

Let me tell you; we have had offers from clients, very economically attractive offers, that we have rejected. Why? Because they would compromise quality. If I had accepted any of those offers, I would probably own three airplanes today. But that is not the idea. The idea is to provide the highest quality products. Why? Because quality lasts, quality transcends. So, that is our focus. All of those searching for a quality product – even on a young rum- we are on the best disposition to supply them. 

Team Labour

I am very proud of my team. We are bond together, and the plan is to stay together. We have a program in which some of our collaborators’ children who decide on an industrial engineering career work their professional practice with us, and if they like it, they stay with us.

Socially Responsible Enterprise

We are a socially responsible enterprise. We are very conscious about everything regarding green practices, and fair trade is among our priorities. Luckily, Panama’s laws are very tight. And I believe that it is paramount to pay workers what they deserve and what is fair. And we are glad to be able to provide quality and also be able to be fair and honest with our team. 

Panama’s Rum

It is a worn phrase but, Open your mind. Experience; rum will probably give you more satisfaction than any other drink. Why? Because rum, unlike other spirits, always will be a synonym of joy.

Thanks so much.