Thursday, April 22, 2010

Beyond rum and roti politics

The election campaigns conducted so far by the Peoples National Movement and the United National Congress have centred on one theme and one theme only: vote for us and we will give you many goodies.

For the complete story, click HERE.

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Thursday, April 15, 2010

Reinvesting in U.S. Territories, Not Foreign Corporations Act

Earlier today, U.S. Senator Robert Menendez introduced legislation aiming at capping at 10 percent the amount of money garnered from the rum tax that U.S. territories can use to subsidize private alcohol producers.

Click HERE to view the full text of the Bill.

PRIDCO Executive Director's letter to Sen. Baucus regarding cap on rum grant

April 12, 2010

Hon. Max Baucus
Chairman, Committee on Finance
United States Senate
Washington, DC 20510

Dear Chairman Baucus:

The U.S. Virgin Islands plans to give the world’s largest liquor company an estimated $2.6 billion in federal rum tax grants over 30 years to locate the company’s rum production in that territory. The USVI also wants to provide another multibillion dollar conglomerate a similar subsidy to expand its rum production in the islands.

By contrast, Puerto Rico only uses 6 percent of the rum tax grants it receives to assist its centuries-old rum industry and related jobs. Allegations that Puerto Rico supports the industry to a greater degree are blatantly false.

Attached are charts detailing Puerto Rico’s expenditures of the grants during territorial fiscal years 2006-2009 and an estimate for FY 2010. The data substantiates that assistance to the industry of $25 million a year averages only 6.1 percent of the federal rum tax grants (ranging from 5.5 percent to 6.6 percent.) This is a significant difference from the subsidy of more than 50 percent of the federal tax grants that the Virgin Islands has promised the company that would move from Puerto Rico.

USVI subsidies of more than the cost at which the rum is being sold would make it virtually impossible for Puerto Rican producers or companies in other segments of the industry to compete. In Puerto Rico, the excessive deals will surely lead to demands for comparable subsidies, and cost Puerto Rico’s budget hundreds of millions of dollars a year in new subsidies and/or lost federal rum tax grants.

Congress has generously given the Virgin Islands, like Puerto Rico, much of the federal tax on rum produced in the islands and in foreign countries to help pay for public services. Both territories should use the vast majority of the grant revenue for that purpose. Limiting the assistance that can be provided to companies to 10 percent of the grants would enable very generous support: Puerto Rican producers -- including the one that would move to the Virgin Islands -- have been profitable with less.

If Congress does not take action, Puerto Rico may be forced to take action and consider all options available to level the playing field to ultimately save its rum industry. Puerto Rico respectfully requests legislation, like H.R. 2122, that would provide a cap on the amount that companies can be given equal to but no greater than 10 percent of federal rum tax grants.

Sincerely,

Javier Vázquez Morales

Click HERE to view the incentive summary report.

Wednesday, April 07, 2010

They'll drink to that: Haitian rum maker endures

It has survived 19 coups, military rule, hurricanes, and even a three-year embargo. But in the Jan. 12 earthquake, Haiti's best-known export and one of its oldest businesses, Rhum Barbancourt, suffered a $4 million setback. Amber bottles and white oak vats -- some containing rum as old as 15 years -- crashed to the distillery floor.

For the complete story, click HERE.

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Bacardi wins round in Havana Club rum case

Associated Press - April 7, 2010 1:24 PM ET MIAMI (AP) - Bacardi USA Inc. has won a key round in its legal battle with Pernod Ricard over sales of the Havana Club rum brand in the United...

For the complete story, click HERE.

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Tuesday, April 06, 2010

Vail Daily Red, White & Brew: A rum to be proud of

Ron Zacapa 23 Gran Reserva, $40.99 - $44.99/750 ml Ron Zacapa 23 is a beautiful blend of 6- to 23-year-old rum, formulated by Spanish doctor and chemist Alejandro Burgaleta in Guatemala. Zacapa is produced from virgin sugar cane honey. It is then aged in Guatemala using the Sistema Solera in old bourbon, sherry and Pedro Ximenez barrels. The Sistema Solera is a process also used in the ...

For the complete story, click HERE.

For additional rum news, check out our Rum News Server, which is updated several times a day.

Please visit us at The Rum Shop for all your rum-related needs, including purchasing rum on-line, rum recipes, rum tasting notes, rum event information and rum consulting services.