New Round of Complaints about US Rum Subsidies

    The rum wars that have been escalating since the large increase in the subsidies began in 2009.     The problem doesn't look like it is going to go away soon either.    The purchase of Lascelles DeMercado (Appleton, Coruba and Wray & Nephew) by Davide Campari-Milano SpA, seems to be part of the fuel for the latest salvo.     There are arguments on both sides of the battle, but there doesn't seem to be any solutions coming from either side.

A report in the Washington Post makes this clear.

By Associated Press, Published: September 10

KINGSTON, Jamaica — Rum, the sugar-based liquor that has fueled the development of the Caribbean for centuries, has become the focus of an increasingly bitter dispute with the U.S.

Small producers in countries such as Antigua, Guyana and Jamaica complain they are being punched by unfair trade and marketing advantages for global beverage corporations operating in U.S. territories, and say U.S. rum subsidies threaten to drive some beloved top-shelf Caribbean labels out of business, or force them to sell out.0

     “The amounts that are being doled out now are staggering,” said Frank Ward, chairman of the West Indies Rum & Spirits Producers’ Association. “We were able to live with the level of U.S. subsidies as they once were. But the massive increases, we believe, have skewed the market.”

     It’s a high stakes battle because rum, first developed on Caribbean sugar plantations in the 17th century and deeply engrained in local culture and history, is one of the few competitive industries for the tourism-dependent region’s tiny, vulnerable economies. The tipple, which can range from colorless to coppery, from almost tasteless to richly layered, generates roughly $500 million in foreign exchange for independent Caribbean countries and more than $250 million in tax revenue.

     The subsidies come from money raised through an excise tax on liquor sold in the United States. Under an obscure federal law, almost all of the money generated by rum goes to the treasuries of Puerto Rico and the U.S. Virgin Islands. Those tropical territories in turn hand a share of it to the producers as a subsidy to do business there.

     Distillers in other countries say they lived fairly comfortably with the U.S. subsidies for decades, even if they thought the rebates gave advantages to rum giant Bacardi Limited in Puerto Rico and Cruzan Rum, a U.S. Virgin Islands brand now owned by Beam Inc., the U.S. maker of spirits such as Jim Beam and Maker’s Mark.

But they are alarmed by recent deals that sharply increased the subsidies for already powerful corporations in the two territories.

     “Our Caribbean distilleries need to export rum in order to survive. But bigger subsidies in the U.S. islands means we don’t get a level playing field for our exports, and it’s going to affect both small and large producers here,” said Anthony Bento, managing director of the 80-year-old Antigua company that makes English Harbour Rum in copper stills and ages it in oak barrels.

     Clifton Shillingford of Shillingford Estates Ltd, a small Dominica distiller that makes its Macourcherie rums from local sugar cane juice instead of molasses, said the subsidies for big global brands in the U.S. islands will “destroy” his rum business.

     Diageo argues the complaints of smaller producers are overblown. Spokesperson Brooke Lawer says the subsidies the British company receives are similar to incentives from U.S. states or other countries to attract industry and do not create a competitive disadvantage.

Read more at: http://www.washingtonpost.com/business/rum-producers-in-small-caribbean-countries-says-theyre-hurt-by-us-subsidies/2012/09/10/b7056c56-fb56-11e1-98c6-ec0a0a93f8eb_story.html

     This little war is really going to hurt the entire rum industry if it doesn't get settled very soon.   I know that large corporations here in the US have purchased rum from Barbados for their new brand "Shellback", and I hope events like this can happen in other places around the Caribbean to help soothe some of the financial woes of other Caribbean distilleries.   ;o)

Monday on Key West

    This is one of those days that I guess that I should have gone ahead and slept in.    It was an air conditioning service day, the cooling system on the boat passes sea water through the system, and about every other month the sea critters try to make their homes in the warm water of the system and clog the lines making the system over heat.    Today is the day that I have to turn off the A/C and back flush the lines.

   This is one of the times that living on a boat really sucks.     The boat will heat up really quick and your clothing turn to liquid almost immediately.    It takes about an hour and a half to flush the lines of the three systems, and by the time you are finished you need a cold shower just to cool off and bury the clothes you are wearing, or scuttle them.

     The process is done and the boat is finally cooling back down.  Perfect time for me to escape  to the office and write this blog for today.    I really still love being on the boat, but like any lifestyle, there are parts of it that none of us ever enjoy.   I hope that your day is going well and you get to enjoy the rest of your day like I am.  You know that when it is all said and done, I am still living here in Key West and paradise just out the door and a short dinghy ride away.   ;o)

Cormorant Heaven

Corks and Cocktails: Key West

    
      Southern Wine and Spirits of South Florida and Transatlantic Wine and Spirits of Florida held a gala event last night at the Casa Marina Hotel here in Key West.    The evening was all about wines and spirits, with a special interest for me being rum.

    We were introduced to a new Dominican Republic rum Called Dominican Club, a really nice anejo rum with a very mature finish for a young rum.  The rum had aromas of fruit and mocha, this amber colored rum was of a very solid nature with smoothness unlike most young rums.

     Cruzan had Master Distiller Gary Nelthropp, a fourth generation master distiller for Cruzan. He talked to us about the different components of the fermentation and distillation processes and what components are good for the rum and which ones are bad.

     Southern Wine and Spirits did a great job of creating a fun event that was very helpful for those of us that buy rum, spirits, and wines for the bars here in Key West, and I was grateful to all of the producers' representatives that were there to make this event very enlightening.  Rum was the most important part for me, but the evening was filled with fine wines, food and spirits of all kinds for out tasting and to become  acquainted with.  ;o)

Crossing Cuba at 8000 Feet

Key West Airport, December, 2000

    In the year 2000, my wife Marta and I embarked upon an adventure exploring the Northern Caribbean.    The first leg took us from Charlotte, North Carolina to Key West, Florida.   After a wonderful day on the island that I would call home a short 5 years later,  we were off on one of the most exciting legs of the trip.  Crossing Cuba at 8000 feet, an altitude that allowed great visibility of the island and a chance to take many really cool pictures from the plane.



Matanzas, Cuba

     After a short 40 minutes in the air, we had Cuba in sight.   It appeared on the GPS screen and we were just off of Matanzas, Cuba and our first real sight of the island.    This is a very exciting event for a guy that grew up with Ricky Recardo and the movies of the 40's and 50's about all of the cabarets and music that I was barred from as a result of the American - Cuba Feud, sort of reminiscent of the "Hatfield and the McCoys".   Anyway I was over Cuba and could not have been more thrilled.



National Farm in Central Cuba

     The trip across took us over the national farms and the Parque Nacional Cienaga de Zapata (Zapata Swamp National Park)  as we left Cuba for Grand Cayman, and our destination for the day.   The Farms were very interesting, they had a complex that appeared to be housing for the workers, and even a baseball diamond as a part of the complex.     The route they allowed us to cross was just to the east of Havana, and from the altitude we were at, never got to see Havana.     Most of the country that we saw was farmland and few signs of any city style living.

Parque Nacional Cienaga de Zapata

    
     When we reached the South Coast, the National Park was a beautiful site.  The meeting of the ocean with the land was one of beauty and just an awesome sight.   The ocean and it's many colors blending with the green and browns of the land made for a very lovely and memorable picture.   The Zapata Swamp is noteable because of the large number of birds. reptiles, plants and invertabrates that inhabit the swamp.   Truely a valued and highly protected wetlands. 

     That was a really great experience for me, and one that I will never forget, but with a little bit of luck, I'll be returning, but this time I will get to spend 4 days in Old Havana to do some research of the places that Hemingway hung out and spent his time in Havana.  Rum research is also a very big part of the trip as well.   ;o)

Fortuna Ron Reserva Exclusiva: 8 Year Old Rum

   Straight from Nicaragua and the brilliance of Master Blender Don "Pancho" Fernandez, come a fine new 8 year old light golden rum.     Fortuna Ron Reserva Exclusiva, is the latest of a string of fabulous rums from the mind of Don "Pancho" Fernandez, this rum has the sweetness of Caribbean fruits and spices, an especially peppery taste with a long lasting somewhat sweet finish.    

     The rum is aged in American Oak bourbon casks for at least 8 years and as many as 10 years.     This  five pass column distilled  masterpiece is made form molasses that produces a very clean and flavorful corn husk colored rum.   Bottled in a short and stocky bottle that brings nautical images to mind as you grab it by the neck.    The surprise comes when you uncork it and the flavors released are so very sophisticated and elegant.

     This is a new rum that I have added to the inventory at the Rum Bar in Key West, and one that is being  loved by all who have tried and enjoyed it's wonderful flavors.    This is a must find rum to add to your collection that you will find yourself enjoying as I do on the aft deck at sunset.  ;o)

Underage Consumption of Alcohol: When is it OK?

     With the starting of college and a lot of high school graduates are leaving home for the first time.     With the temptation of alcohol all around, how should you prepare the 18ish for this.     I do not have children, having said that, I've never faced this question as an adult.   I do have a friend who has just dropped his daughter off at college and I'm sure that the subject has crossed their dinner table once or twice in the recent months.

     In an article for CNN, Allison Gilbert has looked into the subject with some interesting perspectives.

Editor's note: On Labor Day and other holidays that call for cheerful gatherings, many parents wonder whether to allow their underage children a celebratory sip of beer or wine. Allison Gilbert asks experts if giving kids a taste of alcohol is asking for trouble or preparing them for the real world. 

(CNN) -- Before dropping off his son at Colgate University a few days ago to begin his freshman year, New York advertising photographer Robert Tardio went on one last summer vacation with his family. While his wife and youngest son were out exploring the quaint streets of Montreal, Robert took his eldest, college-bound teen out for a beer. "My son is an incredible, conscientious young man. But at 14, 15, 16 -- alcohol was out of the question. We made it very clear what our expectations were and that he would not be drinking."

The rules shifted for Tardio's son Ames when he turned 18. Now, a beer here or there was no longer out of the question. 

"In our minds, he became somewhat of an adult, and we were willing to set new limits. He understood that if he was going to have a drink he had to be responsible and in control at all times. We also had many discussions with him about the consequences of his actions if he wasn't under control."

So the Tardio's did what many parents across the country do: They made up their own rules, inside their own home, when it came to alcohol consumption and their underage children. As a mother of a 10-year-old daughter and a 12-year-old son, I've often wondered if it's OK to give my children a sip of wine at dinner. Would I be sending an irresponsible message, or demystifying alcohol and thereby weakening its allure later on?

Read more at: http://www.cnn.com/2012/09/02/living/labor-day-underage-drinking/index.html

     There are a lot of people that I have talked to in different parts of the world on this subject, and I've gotten almost as many different ideas on the subject as I have had conversations.    I do believe that if alcohol is made available to a teenager under strict control in the home, then when the teenager goes away from home the values and the knowledge of the effects and the consequences strike a balance that will keep them safe.    I remember going to college back in the 60's and the fraternity house was a place of comradely and drinking most anytime that you wish to partake.   The real trick was that I knew " when to hold them and when to fold them" if you will.  This was because of the values that were instilled in me by my parents of being responsible for your actions.     It isn't anyone else's job to watch over me when I choose to have a cocktail, I am the only one that is responsible for what I do when I drink.   I feel that is more people would teach the kids that there is a time and a place for alcohol comsumption and to know their limits, that the "escape from the house will lead to a far less bit of crazy drunkenness the minute they get away from the parents.

    The last point is when the spring break time arrives, this is the first real test for a young person out on their own.   Peer pressure and the want to be a part of the crowd  is real important at that age and some will do what ever it takes to be a part of the group.

     I just hope that a lot of parental preparation has been instilled in the new group of freshman college students that are breaking away for the first time this year.   It is a tough age, to young to be allowed to drink, but old enough to be a voter and a soldier that will defend the country.    I remember that age very well, but we weren't allowed to vote back then.   Keep your head on and let the adult in you be your guide, I won't be the one to say yes it is OK to be drinking, but if you get yourself into that situation, be responsible for your decisions and your actions.   ;o)


    

Labor Day on Boca Grand Key

Approaching Ballast Key

     The day could not have been prettier and the winds light out of the Southeast, perfect to cruise out to Boca Grand Key.    The puffy clouds and the blue of the sea and the sky blending together was just what the doctor had called for on a day off.     This was to be a day of the dinghy, just because it was a day to be in the sun and not under the cover of the bigger boat.    The day just seemed to get better as we approached the different keys in the Lakes Passage  cruising out to Boca Grand Key.  

     Upon arriving at our destination, we got out a nice lunch and a bottle of Atlantico Private Cask rum and a can of Barritt's Ginger Beer, great beach day combination.    This was the first trip back to Boca since January, and the flowers are bringing the wildlife preserve to life.    The fish were swarming at the edge of the beach and the sandpipers picking up pieces of food as they scurried along the water's edge.   All of the activity of the boaters on the beach had little effect on the everyday life of the birds, fish, and lizards as they went about their gathering of food.

 

 

All things considered I guess it was one of the better days that I have spent on the water this year.   Still I wish I had more time to spend there and get to know the little keys that make up the Lakes Passage.   Someday I know I'll have more time that I currently do for such adventures and when I do I'll be out there a lot more often.    ;o)








It Seems that Lascelles DeMercado is Now Part of Campari

In a Bloomberg Report today by Sarah Shannon it has been reported that Campari has acquired a controlling interest in Lascelles DeMercado in it's third largest deal.    

    

     Davide Campari-Milano SpA (CPR) said it will purchase Lascelles deMercado & Co., the Jamaican maker of Appleton Rum, in a deal worth $414.8 million to hasten the Italian distiller's push into overseas markets.  

     Campari agreed to buy a controlling 81.4 percent stake and will make a formal tender offer for all the shares, the Milan- based company said today in a statement. 

     The acquisition is the third-largest by Campari, and marks the company's entry into the rum category. The distiller said the deal will give it a market-leading position in Jamaica and provide growth potential in the U.S., Canada and Mexico. Lascelles deMercado's brands include Wray & Nephew and Coruba. 

     "The acquisition of a family of premium rum brands will allow Campari to leverage its growing portfolio of premium vodka, bourbon and tequila, while allowing it to boost sales and efficiencies of its network," Mauro Baragiola, an analyst at Citigroup Inc. in Milan, wrote today in a note.

 

Read More:  http://www.businessweek.com/news/2012-09-03/campari-buys-rum-maker-lascelles-demercado-in-third-largest-deal

 

     This is an interesting acquisition for Campari, and it appears that it is trying to expand its global footprint and open up new markets for the company in the rum arena.   This is a deal that the results are going to be worth watching in the near future.    ;o)   

 

 

There is Nothing More Relaxing

It is hard to beat a hammock that is tied between palm trees on a beach, with the surf rolling in as a background noise to turn off the stress.  ;o)

Blue Moon: 2012

     For the first time in 2 years we have a Blue Moon.   The moon was full on August 2, 2012 and again on August 31, 2012.   This is a great and rare anomalies that occurs as they say, "once in a blue moon", and is usually one of the more spectacular moon appearances.   There are 12.36 lunar cycles per year, so the blue moon only appears every 2 to 3 years.     As I left the boat this morning, I was struck by a really great view of the blue moon and its reflection on the gulf.

Ernest and Julio Gallo Introduces Shellback Rum

West Indies Rum Distillery  Bridgetown, Barbados

Ernest and Julio Gallo the wine giant of Modesto, California has partnered up with West Indies Rum Distillery in Barbados to produce the rum for their new Rum Shellback.   There are two versions being marketed initially, a "Silver" and a "Spiced" versions.    The rum is made in Barbados and shipped to Modesto where it is bottled and flavored.   

    

"Our opportunity in the marketplace is focused on consumers who wish to progress in the rum category to a modern, premium, progressive rum," Gerard Thoukis, Gallo's senior director of marketing, said Wednesday. 

    

A variety of natural flavors go into Shellback Spiced, including cinnamon bark oil from Sri Lanka, ginger oil from China and Africa, clove oil from Madagascar and India, nutmeg from Indonesia, cassia from Vietnam and China, vanilla from Madagascar and allspice from the Caribbean.      Shellback Silver is just rum, but a news release tells of "floral overtones layered with the suggestion of vanilla and tropical fruit, followed by a smooth, clean finish."     "Shellback" is an old naval term bestowed on sailors who crossed the equator for the first time. Also on the label is the motto "Rum Found Worthy."     Shellback could find favor with the "younger cocktail crowd," said Lexy McCallum, general manager of Bistro 234 in Turlock.   "We love to support local vendors," she said.   

     "We are actively looking at all of the major spirits categories," Thoukis said, "and as opportunities arise, we will take advantage of them."

You can read more at http://www.modbee.com/2012/08/30/2352097/gallo-makes-move-on-rum.html .

     The website offers a story of how the name was derived, and some of the details of the rum's story.   

     A Shellback is an experienced sailor, revered for his nautical progression and courage, who has achieved the landmark triumph of crossing the equator. Shellback Rum honors the proud naval tradition of these sailors with its Caribbean roots and refined taste. Shellback allows experienced rum drinkers the opportunity to experience a modern ‘progression’ within rum.

     Shellback is proud to partner with a Barbados-based rum distillery in the production of its two bottlings, silver and spiced rum, debuting this Fall. Shellback Silver Rum is a clean and flavorful rum for the sophisticated palate featuring notable tropical, fruit, and sweet aromatics notes. Shellback Spiced Rum features no added sugar or artificial flavors and a medley of all natural spices resulting in a smooth, clean taste with notes of caramelized honey layered with hints of dark roast and brown spice. Shellback Rum delivers the authenticity of traditional Caribbean rum, while articulating the sensory cornerstones of an improved, full-flavored rum experience.

read more at http://www.rumforall.com/producers/rum_producer_shellback.html.

 

     I am looking forward to seeing this rum come on line here in Florida and placing it on the shelf here at the Rum Bar in Key West.   ;o)

 

 

 

 

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Read more here: http://www.modbee.com/2012/08/30/2352097/gallo-makes-move-on-rum.html#storylink=cpy

Are Rums Heading Down the Trail of Vodka?

     I'm wondering if the rum world is going to follow suit and head down the path that Vodka has with the insane flavors.     Jim Beam has just purchased the Pinnacle Vodka and Calico Jack brands and they are going to be producing the rum for this brand.    

     I can't believe that there are going to be a bunch of really dumb rum flavors coming at us now like the have in the vodka world.  I can't wait for the arrival of cookie dough or who knows maybe chewing tobacco flavored rums will appear next.     There is a place in the teenybopper bars for these kinds of rums, but I really have to question the validity of  the market potential in the big picture.

     There has been another line of really inexpensive rums that appeared at the  2012 Rum Renaissance Festival called Flip Flop rums that are aimed at the quick grab a bottle to take to the party or lake group.  Maybe these flavored rums might fit the same group as well.

Who knows, I've seen stranger things succeed, so lets look and see what happens to this group of wild ideas.   ;o)  
  

Hurricane Bob: Magic Elixir Revealed

If you are wondering about the "magic" cocktail that we drink on the docks to ward off the hurricanes, well here it is.   It is made in 2 gallon batches and will do wonders for every one on the docks before the arrival of a tropical storm or hurricane.   The flavors of the rum can be worked with to suit your taste, and the amounts of the fruit juices can be played with also.

    This is the same magic that keeps us protected here in the keys and you might want to try it in your neck of the woods also.   This has no guarantee to keep you safe, so please do all your preparation for the impending storm before starting to consume this magic elixir to drive the storm away.

     This is a great cocktail to take to the beach as well it dispenses well from a Gatorade cooler.   Just add ice and enjoy.   ;o)   

Carbonated Fountain Style Cocktails

     There have been several soda fountain systems available for the home to create any type of soda pop you want, but if you use the system to create cocktails that you can carbonate on the bar, this would be open the doors for some great new cocktails.     Just think, Mojito's that are carbonated in the glass instead of just adding soda water to them.     It is the addition of soda water to a cocktail that give it the light airy taste that is so refreshing.   The possibilities are virtually unlimited as to what you can create.    This is perfect for tiki creations and for updating of traditional cocktails as well.   

     My pea brain idea is to create syrups to flavor the cocktails then turn them into soda pops and then put them into the cocktail, adding flavor and fizz at the same time.    You can create carbonated rums, wines, even vodkas.   If your mind can create a new idea or flavor you can carbonate it with these soda gadgets.

     There are also some professional bar units that work off of a CO2 tank that can be placed at the bar so cocktails can be carbonated right in the glass.   The other alternative is to put something like rum into a keg and put through a tap just like draught beer and straight into a glass as fizzy as beer, but it is really "draught rum"   The Perlini System can be used to offer both bottled and carbonated cocktails right at the bar.   These are not mass produced, but your favorite bartender's own mix bottled or carbonated right in front of you at the bar.


     Today I'm headed to the store to try and locate one of these units and see what new things can be created in the "Rum Lab".    I really feel that the possibilities are endless and that you can many time over multiply your recipe book through the use of one of these systems.    This is really not such a new idea I remember "seltzer bottles" that you just filled with water and put a CO2 cartridge in and "Wa La", you have fresh soda water for your cocktail.   Now you can take the cocktail place it in the carbonator and "Wa La" you have a carbonated cocktail.    I can't wait to get this idea into motion.  ;o)

Isaac Passes Key West with Only a Wimper

   Issac is gone past Key West and headed up into the Gulf of Mexico.   The effects in Key West were a lot of work boarding up houses, businesses and many miles of extra lines applied to boats.    The really great thing that came out of Isaac is people took the time to clean up their loose debris around their houses and docks.  

     Duval was only occupied with weather people from the media and a few chickens as I drove to the Rum Bar yesterday morning.    By the time I got my inventory work done and the bar ready to open, there were people waiting outside ready to come in and start the "Hurricane Party", even though it was still only a tropical storm.  The good news is it still remains a tropical storm today.   The big event came and passed with a fair amount of rain and some gusty winds.   The  winds were strong enough to clear all of the dead fronds from the palm trees on the island.   Driving my scooter home at 6ish last night, the winds were still blowing around 30 mph and a little bit of rain was still falling.    I've gotten wetter in a normal every day thunder storm, but still it was nice to be back aboard the boat. 

     Today there are still some gusty winds blowing around, and they say there will be a few rainy times, but I met the sunshine when I got off of the boat and headed down the dock heading to the office.     I am happy to report that there were only very minor bits of damage that I noticed as I went to town this morning and the boards are virtually all off of the windows and doors this morning.   

     Last night the last of the "Hurricane Bob" magic potion was consumed to make sure that the winds didn't get out of control.  As usual, the magic in the mix decimated the storm before it got to Key West.   Do I really believe this, well, probably not.  Althrough the past 10 or so storms that have approached since the residents on the docks have sat and raised our cups in defiance, none have strengthened and most lost their strength or turned away.   Is this a coincidence, I really don't know, but until it fails us we will continue to make the "Hurricane Bob" and drink it up in defiance until it does fails us.   By the way, we were all prepared for the worst long before we started the traditional defiance party.

     This is the last official Bahama Bob Rumstyles Hurricane Report form The Rum Lab in Key West, until the next storm.   ;o)