American Rum Report #31 — July 10, 2020
~ In This Report ~
#1: A new section in the American Rum Index 📜
#2: Attend the American Distilling Institute's 2020 Virtual Rum Summit next Friday (I'm doing a presentation!) ⛰️
#3: Hawaii's rum producers petition for direct-to-consumer shipping (and you can sign it!) 🖊️
#4: Koloa Rum Company enters its 27th state 🌺
#5: Trade war tariffs loom for American rum producers distributed in Europe 🇪🇺
#6: A closer look at Maryland's new moonshine-inspired rum distillery 🇵🇷
#1: A new section in the American Rum Index 📜
When I first launched the American Rum Index, the goal was simple—give people an easy way to learn about as many rum-producing distilleries in the U.S. as possible.
Whether you want to see how many rums are being made in a certain state, or get production details for a specific American rum you happened upon in the store, the Index was designed to make it easy for you.
But...it had one major blind spot: it only focused on rums distilled in the U.S.
That meant it was missing things like:
What I call "distiller/bottlers" — distilleries that make spirits but choose to import rum and bottle it under their own brand (often after doing their own secondary maturations and blending). Two James Spirits, with its lovely Doctor Bird Rum, is an example of this.
Independent bottlers like Holmes Cay
Brands like Batiste Rhum, which imports rum exclusively from RABMG in Marie-Galante before proofing, aging, and bottling it in California.
These producers are doing fascinating stuff, and we're only going to see more of them. So I'm happy to say that I've added a section to the Index that includes them. I still have many more producers to add, but I wanted to go ahead and let you know that the first seven are already listed.
You can check it out right here.
One note: there are several distilleries that both distill and import rum to bottle under their own brand (Maggie's Farm Rum, Three of Strong Spirits, Virago Spirits, to name a few). I'm likely going to list these producers in both sections.
As I mentioned, I already having a running list of more producers I need to add to the new section, but feel free to email me ones you see missing.
#2: Attend the American Distilling Institute's 2020 Virtual Rum Summit next Friday (I'm doing a presentation!) ⛰️
Originally, ADI's 2020 Rum Summit was going to take place during the organization's annual conference in New Orleans back in April.
Now, it's going to take place online next Friday, July 17. While it's a bummer the event had to be moved online, the upside is it's way easier for you to attend! Plus, ADI even has a "pay what you can" model for the event, so it's affordable for any budget.
I'll be giving a presentation surveying the entire American rum landscape (and how producers can stand out), but there's much more to be excited about than just me. :)
I mean, check out this lineup:
Jonny VerPlanck (Vagrant Distiller) is doing a comparative rum tasting.
Karen Hoskin (Montanya Distillers) is talking sugarcane sourcing.
Matt Pietrek (Cocktail Wonk) is giving presentations on high ester rum and rum/tiki history
Kenneth Gravois, PhD (Louisiana State University's Sugar Research Station) is presenting on the history of Louisiana sugarcane and the process of producing molasses
And Andrew Lohfeld (Roulaison Distilling Company) is moderating a panel featuring several of the speakers
Go here to get all the details and register.
Hope to see you there!
#3: Hawaii's rum producers petition for direct-to-consumer shipping (and you can sign it!) 🖊️
In response to the losses sustained from tasting room and tour closings, Koloa Rum Company (along with fellow Hawaii rum producers Ko Hana Distillers and Kuleana Rum Works) submitted a letter to Hawaii Governor David Ige asking for an executive order allowing direct-to-consumer spirits shipping.
That was two months ago.
Now, the distilleries (along with other spirits and beer producers in Hawaii) have launched a Change.org petition that regular folks like you and me can sign to support the cause.
While the petition itself covers the impact that pandemic-induced closings have had across Hawaii's producers as a whole, this article from Pacific Business News details the impact on Koloa Rum Company, specifically:
“Koloa Rum Company closed its tasting room and store in mid-March, and it has furloughed its 11 employees indefinitely. During March-June, the company’s Hawaii-generated revenue was down 98% compared to the same period last year.
“[Koloa CEO Bob] Gunter said that the tasting room and store generate a significant amount of that revenue. In normal times, the store attracts about 250 visitors daily — most of whom purchase three or more items.
“'Since closing the store, many local and off-island customers have contacted us wanting to purchase our rums and ready-to-drink cocktails,' he said. 'Being able to sell and ship directly to these customers would help us make up as much as 75% of our otherwise lost revenue. This would in turn enable us to reemploy most, if not all, of our employees who are currently out on furlough.'”
It's been wild to see how differently states have handled spirits regulations in response to the pandemic. Distillers I've spoken with in states like Maryland and Massachusetts have had great things to say. States like Louisiana (and Hawaii, it looks like) not so much.
It was already obvious that spirits regulations in the U.S. were fragmented and often nonsensical. The pandemic has only made them more painful.
Here's the link again to the Change.org petition.
#4: Koloa Rum Company enters its 27th state ⛰️
Of course, it hasn't been all bad news for Koloa. At the end of June, the brand announced its expansion into Colorado thanks to a partnership with CTS Distributing. Stores across the state will be carrying Koloa's full line of rums, and even its ready-to-drink cocktails.
Both parties sound pleased with the partnership's initial results, but then again, it is a press release:
“'With an iconic and top quality producer like Koloa Rum, we didn’t have to think twice about partnering with them,' said Garrett Willyard, Business Operations Manager for CTS Distributing. 'We are excited to represent the brand in Colorado, and we are already seeing great results across the state!'”
Even if it is a press release, it's nice to see an American rum brand described as an "iconic and top quality producer"!
As mentioned, this brings Koloa's distribution to 27 states to go along with New Zealand, Australia, Canada, and Japan. Hawaii's distance from the the mainland comes with its challenges, but I suppose it does make distribution in the far east and south pacific a bit easier.
#5: Trade war tariffs loom for American rum producers distributed in Europe 🇪🇺
While this article form Forbes mainly focuses on impending EU tariffs on American gin and vodka, rum worked its way into this quote from Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (DISCUS):
"The EU has stated it may impose retaliatory tariffs this spring on US rum, vodka, and brandy in its parallel case at the World Trade Organization concerning Boeing," Swonger said.
The article does a decent job recapping what got us here in the first place—the U.S. putting a 25% tariff on many European goods and spirits, including scotch and Irish whiskey. In response, the EU put tariffs on American whiskey (which DISCUS estimates have cost the industry $300 million).
With the U.S. now considering a tariff on gin, vodka, and beer from the EU, the EU is already mulling over the aforementioned tariffs on American rum, vodka, and brandy.
Of course, this whole back-and-forth with spirits is tied to tariffs on other goods like steel and aluminum. As Brad Japhe writes in the article, "The spirits industry just keeps getting caught in the crossfire, an innocent bystander in a real-time demonstration of how everyone loses in a trade war."
I imagine these tariffs would make things difficult for the handful of American rum producers available in the EU, like Bayou and Montanya (the latter of which just recently expanded even further into the market in partnership with Skylark Spirits, though it's primarily UK focused).
Small producers already have an uphill battle convincing consumers in far-flung markets to pay premium prices for relatively young products. When those prices increase, it'll only get harder.
Politicians, please tell us again how much you love small businesses.
#6: A closer look at Maryland's new moonshine-inspired rum distillery 🇵🇷
If you're a regular reader, you might remember multiple Release Radar emails featuring rums from Puerto Rico Distillery in Frederick, Maryland. These rums go by the name pitorro, one of the terms Puerto Ricans use for the island's plentiful quantities of clandestinely produced moonshine rum.
After two years of planning and preparation, father and daughter duo Angel and Crystal Rivera opened the distillery in March—just in time for the pandemic to force them to scrap most of those plans.
A local newspaper wrote up a nice story detailing the story behind the distillery, how they've dealt with tasting room closures, and what makes pitorro unique.
Check it out here and support Puerto Rico Distillery if you're in the Maryland / D.C. area.