Stop Massive Rum Subsidies in the USVI and Puerto Rico

This is the main discussion section. Grab yer cups! All hands on deck!

Do you support or reject subsidies to the USVI and Puerto Rico?

I completely reject them.
2
18%
I will join in the fight to reverse them.
1
9%
I will boycott Barcardi and Captain Morgan.
2
18%
I reject them , I will fight them, and I will boycott.
6
55%
 
Total votes: 11

User avatar
Dai
Minor God
Posts: 796
Joined: Mon Mar 04, 2013 9:33 am
Location: Swansea

News Clip Chairmans Reserve

Post by Dai »

https://www.youtube.com/watch?v=z89YglOoB4k

Jimbo would you consider the embedding of video into the forum.


*******
Capn's Log: Good eyes Dai and thank you. This video was made by DBS Television, a family owned television station located in Castries, St. Lucia. A spokeman for Lucia'a sole distiller - Chairman's Reserve - feels that although they believe they can survive in the short term, that the longer term situation is grim. Dai, this version of the phb forum has no way to embed a video - I sure would if I could...
User avatar
jankdc
Cap'n
Posts: 139
Joined: Mon Nov 26, 2012 8:30 pm
Location: Cleveland

Post by jankdc »

Dai, I tried several times to embed the video. Thanks for linking it. Jimbo, do you have an ability to turn html on?




*******
Capn's Log: Spoke to this on a PM to Dai, but until I have the time to update this board to a later version, what you see is what we get. With home and medical, etc., etc., my plate is just too full for some time, especially when update risk the loss of data, passwords, etc. Patience...
Rum Reviews Rankings and Cheat Sheet
References: MGXO, R Mat. GR, Scar Ibis, Apple 12, Barb 5, Pusser's, Wray and Neph, ED 15, 10Cn, West Plant, R Barc Imp.
User avatar
Capn Jimbo
Rum Evangelisti and Compleat Idiot
Posts: 3550
Joined: Mon Dec 11, 2006 3:53 pm
Location: Paradise: Fort Lauderdale of course...
Contact:

Post by Capn Jimbo »

There's good news and there's bad news...


It's now about 2-1/2 months since the campaign to Save Caribbean Rum began on January 5th. Let's start with...


The Good News

1. The petition has been signed by the Who's Who of Spirits and Rum. These include rum and spirits authors Dave Broom, Davin de Kergommeaux, Jeff "Beachbum" Berry, Ian Williams and Rene van Hoven. Many of the rum websites signed including Tiare, the Bilgemunky, Inu a Kena, and the Rum Dood. Distiller Carl Kanto of El Dorado was another very important signature. There are others, but total signatures are now 261.

2. Davin de Kergommeaux (Canadianwhisky.org) devoted a long article that reproduced the SCR Press Kit, and made clear that the issue was entirely valid, and made clear both he and his friend Dave Broom had signed the petition.

3. A number of other resources and non-signatories such as Wayne Curtis and Luis Ayala supported the issue, as did Bahama Bob. Clan Burr "friended" SCR and retweeted the petition. A magazine printed an article about the issue and the petition.

4. The petition grew very rapidly after Davin's article, and steadily to the current 261 signatures from all over the world.


The Bad News

1. The petition has come to a definite lull or hold. We have learned that articles and personal support are important. Anytime an article appeared there was a noticeable jump in signatures. Also effective were those Friends of the Caribbean who used Facebook, Twitter, Google + and their personal email contacts to spread the word.

2. While effective for third parties, Facebook and Twitter are not particularly suited for SCR itself - after all, how many times can you tweet or post "It's a bad situation, please read and sign the petition"? How many times can you honestly praise a fine Caribbean rum, then note that it is seriously threatened, and "...please read and sign..."?

3. Unlike single malts and fine whisky, rum drinkers in general are not particularly knowledgable, and do not seem to understand or appreciate purity or honesty in labeling. To them rum is a majorly fun, Pirate-themed drink and from this wide perspective there is no issue. The products of the USVI and PR are just fine for them, thank you very much, there is no issue.

4. Rum remains a promoters "...it's all good" game, wherein a handul of commercial festivals make serious money by not rocking the boat and by wearing their Big Three kneepads. The festivals are entirely dependent on these three, and the big distributors who are dependent on them for the many labels they control.

5. A major insider who personally believed in the issue and petition (and signed) promoted the issue to his industry and media mailing list. He advised me that to them, the issue was a hot potato as nearly all of these contacts depended on Diageo and friends in some way, be it sales of product or advertising. He state they are quite literally scared of the issue and blowback.


And The Ugly

1. The petition especially had been gaining ground until March 2nd - aka Diageo Dump Day, or DD-DAY - when four lonely holdouts (Hamilton, Burr, Cokely and Dykstra - attacked within hours of one another in coordinated fashion, with the explicit intention of disinformation, deception and diversion.

2. Their goal was simple: avoid the issue and kill the messenger in a vicious, ad hominem fashion. They made up lies that were nothing more or less than insulting and defamatory at best and libelous at worst. They publicly used foul language and spoke in the crudest possible manner. They invented horrible lies (here), and all with the clear objective of destroying the petition.

That it was signed by the Who's Who of rum and spirits mattered not. Fortunately their lies were hidden (Hamilton) or drew little attention (Burr, Dkystra and Cokely). Some readers publicly rejected their views.

3. To not support the very same Caribbean rum and culture upon which they profit (greatly) is hypocritical and shortsighted. Without these rums, there is no renaissance and nothing to celebrate.


Bottom Line

However difficult it is to not respond in kind to these loudmouthed and short sighted few, that gains nothing. The focus was, is and remains the plight of our Caribbean friends, their rum and their culture. Bananas and coffee were taken away from them by huge conglomerates, and now their remaining, rum-based livelihood and cultures are at serious risk.

The Press Kit said it best then and I will say it again: this is the time for all those who profit from or profess to love rum to set aside their petty differences to unite and support our Caribbean friends in their fight to survive.

My plea remains - for respectful unity.
Last edited by Capn Jimbo on Sun Mar 17, 2013 11:06 am, edited 1 time in total.
da'rum
Minor God
Posts: 957
Joined: Wed Aug 29, 2012 7:09 pm

Post by da'rum »

As you said Cap'n, there is only so much we can do. We can keep supporting the rums which we love, noting their probable upcoming hardships and inform those who may be unaware of Diageo's strangle hold on the rum industry and quality lowering agenda.

As I have said in the past, regardless of the pressure that the Caribbean rum producers are under, they must take the lead in the protest and be proactive if they wish to change the status quo.

We are just bit players, the producers themselves must start swinging the big stick.

Or else.




*******
Capn's Log: I think da'rums cogent post is a good place to end this thread. Further, that there is no doubt whatever that da'rum, Dai, Spinner, jank, Yank, et al (forgive me if leave anyone out) did their level best to promote the problem and the solution. Further coverage will appear in new posts/threads.

To have garnered such amazing and leading signatures and support from around the world was a smashing success. The effort will not cease until Burr's Caribbean Rum Wake 2013 is completed. You can be sure the issue and the petition will be a topic of conversation among the distillers and Rum XP panelists and between those who signed and those who ran.

Of course I'd have preferred to achieved total unity, but making the fight to Save Caribbean Rum a focus of discussion is a major achievement. As far as Clan Burr and attendees Cokely and Dykstra will be concerned I suggest Immodium, and do hope they have a goodly supply of Extra-Large Depends, lol...
in goes your eye out
User avatar
Capn Jimbo
Rum Evangelisti and Compleat Idiot
Posts: 3550
Joined: Mon Dec 11, 2006 3:53 pm
Location: Paradise: Fort Lauderdale of course...
Contact:

Post by Capn Jimbo »

Bet you forgot this thread is still here...


As per forgetting, I'm with uh - oh yes, da'rum, on this. Here's a couple links of interest:
As a result of luring Diageo and its Captain Morgan brand, the total amount of the Virgin Islands' federal rum subsidies has skyrocketed due to increased production.

In 2007, total rebate revenues in the U.S. Virgin Islands were $86.7 million. That rose to $199.4 million this year, the first year with partial Diageo production on struggling St. Croix, where a massive refinery closed down earlier this year. Revenues for 2013, the first full year of Diageo production, are projected to be in the range of $236 to $276 million, according to government spokesman Jean Greaux.
(US rum subsidies hammer Caribbean producers)

Really now. The USVI subsidies nearly tripled from 86M in 2007 to 199M in 2012. And remember - Diageo production is just now kicking in and is estimated to perhaps 276M in 2013. So when you hear about how healthy the rum industry is - and their wonderful "growth", know that that is NOT referring to the Caribbean rums we love.

And the massive subsidies will not really be felt until 2014 and every year thereafter for a guaranteed 30 years, renewable for another 30.


And...
Pierluisi says he's been working closely with two Democratic senators — Robert Menendez of New Jersey and New Mexico's Jeff Bingaman, who just left the Senateto impose reasonable limits on the amount of cover-over funding that can be used by each territorial government to subsidize its rum producers, but that "this effort has been resisted by Diageo and by the USVI."
(Puerto Rico Rep. Calls Rum Rivalry With USVI ‘Race to the Bottom)

This article was published in January. There are now at least three Congresspeople who have now joined in the effort to turn things around. Listen to this one:
""My longstanding position on this issue has been that rum producers should be competing among themselves based on the quality of their products and the prices they sell them at — not the amount of incentives or subsidies they get from territorial governments," Pierluisi told us."
User avatar
Capn Jimbo
Rum Evangelisti and Compleat Idiot
Posts: 3550
Joined: Mon Dec 11, 2006 3:53 pm
Location: Paradise: Fort Lauderdale of course...
Contact:

Post by Capn Jimbo »

Out of sight is not out of mind...


The Petition to Save Carribbean Rum was established in mid January, roughly 6 months ago. It grew rapidly, then steadily and in the last month or two, out of sight became out of mind, even for moi. When those committed to purity walk away, game over. But then Save Caribbean Rum commented with feeling to a Facebook post by Carl Kanto (the distiller/blender for El Dorado). Carl is a signer and has openly spoken about his fears for ED in re the subsidies.

SCR's comment was simply personal, but included a link to the petition and voila! Nearly 15 signatures in a day and a half from all over the world, simply by addending the link with a brief statement, in this case:

Carl, our best wishes and hope you survive the USVI subsidies. Your rums are special and worth saving for the world.

http://www.gopetition.com/petitions/sto ... uerto.html "
Plugging in the link to the petition when you post, particularly in the social media can be terribly effective. BTW, total signatures are 308...
User avatar
Capn Jimbo
Rum Evangelisti and Compleat Idiot
Posts: 3550
Joined: Mon Dec 11, 2006 3:53 pm
Location: Paradise: Fort Lauderdale of course...
Contact:

Post by Capn Jimbo »

An older, but very revealing article:

"USVI will use revenue from the rum excise tax cover over to issue tax-free bonds that will finance construction of a rum distillery for Diageo in St. Croix. Additionally, USVI will provide "marketing support payments" which could pay for Captain Morgan rum ads. In essence, taxpayers will see their tax dollars at work in magazine advertisements and in television promos."
So, we're paying for Diageo's ads. And...

"According to medium growth rum production forecasts from Diageo, over the 30 year life of the agreement, USVI will see an increase in payments of $5.4 billion, of which $2.1 billion will be directly pocketed by Diageo. In addition, $497 million will be spent financing $250 million in bonds to construct the Diageo distillery. The extra $2.75 cover over that Congress approved in the financial market bailout bill last week, if continued for the life of the project, will be worth (another) $439 million to Diageo."
Over the next 30 years (renewable for another 30) the American public will be clipped for $5.4B, of which Diageo gets $2.1B! Not to mention another $497M will go to build a free distillery for the Captain (Morgan). And further not to mention, yet an additional $439M to these asshats, for what? Heaven knows. But surely there are benefits, right? Of course...

"In return, Diageo will shift all Captain Morgan rum production from Puerto Rico to USVI, and employ at least 40 people at the USVI plant (with at least 80% being USVI residents)."
(Credit: http://www.taxpayer.net/library/article ... ilout-bill)

Yup, in return Diageo (a) abandoned Puerto Rico (and whatever jobs were there) and (b) created an astounding 40 new jobs at their free new plant in the USVI! At least! If things go well (how could they not?) maybe it'll be even 100 new jobs. Do the math...

Our cost/donation per job: just $20,000,000 per job! Such a deal.

Let's put this in perspective: the population of the USVI is only 109,000 of which less than half are employed. There are two disparate classes, a relatively few wealthy business owners and ex-pats, far overshadowed by large poverty class. High crime prevails. If the USVI's committed share of the cover over was instead just directed to the poorer residents (rather than to Diageo and their bought off minions), each person would receive an estimated $44,500 - enough to pull them out of abject poverty.

But nooooooooo! Nope, it all goes to a foreign megacorporation, the Diageo zombies. Screw the people, it's about power and profit, in that exact order...
User avatar
Capn Jimbo
Rum Evangelisti and Compleat Idiot
Posts: 3550
Joined: Mon Dec 11, 2006 3:53 pm
Location: Paradise: Fort Lauderdale of course...
Contact:

Post by Capn Jimbo »

Latest count:


At 341, and friended by Richard Seales. And this without promotion for many months.
HarryPotter69
Landlubber
Posts: 1
Joined: Sun Jan 28, 2024 12:33 pm

Re: Stop Massive Rum Subsidies in the USVI and Puerto Rico

Post by HarryPotter69 »

The recent subsidies and taxes in the rum industry heavily favor large corporations, hurting smaller distilleries in the Caribbean. This imbalance risks the diversity and heritage of rum production. It's essential to raise awareness and advocate for fairness in the industry.
Post Reply