"Got Rum?" Magazine
Rum in the News
The most recent and noteworthy headlines in the rum industry, written by Mike Kunetka and published monthly in the "Got Rum?" magazine. To share your news with our readers, please send an email to Mike@gotrum.com
FDA ASSESSES FEES FOR HAND SANITIZER
The pandemic hit small distilleries hard. In most cases, tasting rooms, a key source of revenue for these businesses were shut down. In attempt to keep their business afloat and employees working, many distilleries turned to manufacturing hand sanitizer. Some gave to local hospitals, health workers and first responders for free; others charged minimal amounts to cover the material costs. This week, just as it seemed they’d made it through the worst of a terrible year, the Food and Drug Administration added more bad news. The agency delivered notice to distilleries that had produced hand sanitizer (which it considers to be an over-the-counter monograph drug) in the early days of the pandemic, that they now owe an unexpected fee to the government of more than $14,000. The FDA stated the following on their website: FDA is publishing a Federal Register Notice (FRN) titled “Fee rates under the Over-The-Counter Monograph Drug User Fee Program for Fiscal Year 2021” to establish fees with respect to OTC monograph drug facilities and OMORs for FY 2021. OTC monograph drug facility fees for FY 2021 will be due on February 12, 2021, 45 days after publication of this FRN. The Food and Drug Administration (FDA) is announcing the fee rates under the Over-the-Counter (OTC) Monograph Drug user fee program for fiscal year (FY) 2021. On March 27, 2020, a new section was added to the Federal Food, Drug, and Cosmetic Act (FD&C Act) by the Coronavirus Aid, Relief, and Economic Security Act, which authorizes FDA to assess and collect user fees from qualifying manufacturers of OTC monograph drugs and submitters of OTC monograph order requests. FDA refers to the OTC Monograph Drug user fee program as “OMUFA” throughout this document. This notice establishes the OMUFA fee rates for FY 2021. Paying a surprise $14,000 bill would be a challenge for small businesses in any year, but it’s a particular challenge for craft distilleries in 2020. Becky Harris, president of the American Craft Spirits Association, told Reason Magazine “I compare it to surprise medical billing,” She’s hopeful that if the FDA has some discretion as to the applicability of the fee, that they will exercise it to exclude distilleries, most of which no longer produce sanitizer and have no intention of continuing to do so now that the emergency shortage has passed. https://www.fda.gov/industry/fda-user-fee-programs/over-counter-monograph-user-fee-program-omufa
KOLOA RUM
After launching a 3-year old rum in 2018, Koloa Rum Company has just released Koloa Kaua’I Reserve 5-Year Aged Hawaiian Rum. This release was aged in American white oak barrels at the distillery on the island of Kauai. Bob Gunter, CEO of Koloa, told Just-Drinks “We released our first aged rum in 2018 following more than five years of research and experimentation to develop the protocols necessary to properly age rum in Hawaii’s tropical environment. Our aged releases have quickly become some of our most sought after and coveted offerings, and this 5-year aged variation is no exception.” https://koloarum.com/
DESTILERIA SERRALLES
Destilería Serrallés Inc., the producer of Don Q, Puerto Rico’s number-one rum, announced the launch of Don Q Reserva 7, the latest addition to its curated portfolio of aged rums made with the finest reserves from the distillery in Ponce, Puerto Rico. The distillery’s continuous focus on expanding its aged and super premium offering aligns with increased consumer demand and curiosity in the segment. Jaiker Soto, Master Blender, crafted a vibrant blend of multi-column distilled light rums and single copper column distilled heavy rums, which were aged for a minimum of seven years in American white oak barrels. For this unique blend, Soto collaborated with Silvia Santiago, Senior VP of Manufacturing and Maestra Ronera, along with Roberto Serrallés, sixth-generation rum maker, bringing together decades of rum making experience for the creation of this superb rum. The team hand selected and blended Puerto Rican rums that were aged for a minimum of seven years to create a new Don Q rum variant that is radiant and bold with an intricate start and a mature, yet brilliant, long finish. This versatile rum expression is best enjoyed neat, on the rocks, in a cocktail like the Classic 7 or Honey Breeze, or to elevate a favorite mixed drink, simply by adding soda or fresh juice. “We wanted to create a rum with a distinctive flavor profile and maturity that had balanced notes and the characteristics fans have come to expect from Don Q Rums. With Reserva 7, our goal was to craft a rum that honored the Serrallés family and their legacy of making world-class rum,” says Soto. “It was an honor to taste through reserves and blend a selection of aged rums to create a smooth and elegant expression with notes of roasted oak, caramelized fruit, honey and chocolate.” Don Q Reserva 7 is presented in a new bottle design with the brand’s updated image and logo. The elongated glass bottle evokes the refinement and simplicity that has characterized the rums crafted by the Serrallés family for 155 years. The brand’s new packaging highlights Don Q’s values of heritage and quality and was executed by Stranger and Stranger, the world-renowned, internationally awarded British firm that specializes in packaging design for premium spirit brands globally. https://donq.com/
RICHLAND RUM
The Georgia Department of Economic Development announced its International Trade division’s 2020 GLOBE Award recipients. This state-led awards program highlights Georgia companies that entered new international markets in the previous year. During calendar year 2019, GLOBE winners from 17 counties across Georgia collectively entered 75 new international markets. Richland Rum has been named a recipient of the 2020 GLOBE Award in the International Trade Division. It’s the fourth consecutive year the company has earned the annual award that highlights companies that entered new international markets during the previous year. Stephen Oakey, the company’s Director of Marketing and Public Relations, thanked state economic officials for their continued support and recognition. He told the Brunswick News “Through the years, the GDEcD has been instrumental in helping us and other Georgia companies to reach new markets and expand our business,” he said. “Their resources, insight and support are top notch and make doing business in Georgia that much more beneficial.” During the past year, Oakey said Richland Rum expanded its market to dozens of countries and is now sold as far as Japan, Denmark, South African and Nambia. https://www.richlandrum.com/
LANGS JAMAICAN RUM
Langs Jamaican Rum first reached Scotland back in the mid-nineteenth century. Ian Macleod Distillers revived the Jamaican rum brand in September with the introduction of Lang’s Banana Rum. Now they have added two new offerings, a Mango & Ginger Rum and a Pineapple Rum. Neil Boyd, UK Managing Director of Ian Macleod Distillers, said in a press release: “The rum category continues to skyrocket in popularity, which is why we decided to meet that demand by bringing back a beloved brand. Langs Jamaican Rum stays true to the original 1860s Lang Brothers Rum, tropical, characterful and packed with exotic fruit notes. Our range is brimming with natural flavor and delivers a taste of the Caribbean to the UK. It’s liquid sunshine in a bottle.” Langs Mango & Ginger Rum is described as having notes of Mango coulis, chewy meringue, and vanilla hitting the nose, and a thick and sweet palate of ripe mango, peach, lime and crystallized ginger building in a long-spiced finish. Meanwhile, Langs Pineapple Rum boasts a nose of juicy pineapple, coconut and raisin ice cream, and a palate of fizzy pineapple balanced with rich caramel and cinnamon. Langs Rums are a blend of molasses-rich, pot and column distilled Jamaican rums from ex-bourbon American white oak casks. https://www.ianmacleod.com/
FLOR DE CAÑA
Flor de Caña, a sustainably produced premium rum brand, has been honored with the prestigious “Sustainability Award”, the highest distinction given during the 2020 Green Awards (organized by The Drinks Business), in recognition of the brand’s leadership within the industry and historic commitment to sustainable practices. Today, Flor de Caña is the only global spirit to hold the world’s two top sustainability certifications: Carbon Neutral and Fair Trade. While this achievement impressed the judges, it was the additional efforts of this family-owned brand that secured its position as recipient of the award, in particular the use of 100% renewable energy to distill its rum, planting 50,000 trees annually since 2005 and its programs to support the local community. The Carbon Neutral certification, issued by Carbon Trust, assures consumers that Flor de Caña offsets all carbon emissions during the entire lifecycle of the rum, from field to market. Meanwhile, the Fair Trade certification, issued by Fair Trade USA, verifies that the rum is sustainably produced in compliance with over 300 rigorous labor, social and environmental standards. The Flor de Caña story began in 1890 when a young Italian adventurer decided to establish a distillery at the base of Nicaragua’s tallest and most active volcano, the San Cristóbal. 130 years and five family generations later, the entire production process of Flor de Caña continues under the supervision of the same family, mastering the art of sustainable rum making. Flor de Caña is a sustainably produced premium rum that’s Carbon Neutral & Fair Trade certified. From an 1890 family estate, it’s distilled with 100% renewable energy and naturally aged without sugar. It was awarded “Best Rum Producer of the Year” by the International Wine and Spirit Competition in 2017. www.flordecana.com
APPLETON ESTATE
Appleton Estate has launched its Hearts Collection, a limited-release of three pot-still rums aged between 21-26 years. The range is a collaboration between Appleton Estate’s Master Blender, Joy Spence, and Luca Gargano, the Italian rum collector and owner of Velier, the specialist wine and spirits importer based in Genoa. The rums are the first single-marque pot-still rums that the Jamaican distillery has ever released and are from each a different vintage; 1994, 1995 and 1999. Three thousand bottles are available from each marque. “I was looking for beautiful, spicy, fruity notes, something rounded with vanilla, a little coffee, and cocoa notes coming from the oak. The smell and taste are so enigmatic. It takes you into a different world,” said Spence. “Pot still rum is such an amazing rum, it’s such an amazing base to work with –it’s the heart and soul of our blends.” This release represents the first collaboration between Joy Spence and Luca Gargano. “For me, the Hearts Collection is really to show how many colors, the biodiversity of Appleton Estate in the sense that the Estate has so many different marques, so many different vintages,” said Gargano. “The big value of Appleton Estate, in parallel with Joy’s exquisite blending techniques, is its production, heritage and stock, which makes it the best distillery in the world.” The Hearts Collection’s launch follows Appleton Estate’s recent brand relaunch which included a new packaging design and the release of a new eight-year-old reserve rum. The Hearts Collection is available from November to December 2020 in selected, premium spirits retailers in global markets including Italy, France, Germany, United Kingdom, Austria, Denmark, Belgium, Switzerland, Czech Republic, New Zealand, Singapore, Japan and Jamaica. The collection will be available in the United States in early 2021. https://www.appletonestate.com/
SPIRIT HUB INDEPENDENT DISTILLERY FUND
Spirit Hub, an online direct-to-consumer marketplace to shop for thousands of hard-to-find craft spirits from independent distilleries, has launched of The Spirit Hub Independent Distillery Preservation Fund, a 501(c)3 not-for-profit organization established to provide financial aid and resources for independent distilleries around the world. The creation of The Fund was accelerated in response to the COVID-19 pandemic, when many of these businesses found themselves in need of support. “Spirit Hub was founded on the premise of helping independent distilleries thrive and it was within that same premise that we created The Fund to alleviate the pressures facing independent distilleries across the United States,” said Michael Weiss, CEO and Founder of Spirit Hub. “The Fund will provide much-needed support, financial aid and resources to independent distilleries greatly impacted by the pandemic and allow them to continue pursuing their passions and elevating the craft spirits industry as a whole.” “The COVID-19 pandemic has hit the craft spirits industry hard, especially the mom and pop operations that didn’t have big corporations backing them” said Kent Rabish, President of The Spirit Hub Independent Distillery Preservation Fund and owner of Grand Traverse Distillery. “The Fund will provide vital relief for those deeply impacted by the pandemic and be a resource to help beyond that too.” In 2021, distilleries interested in applying for funding from The Spirit Hub Independent Distillery Preservation Fund can fill out an online application form to detail their request and explain their needs. Applications will be reviewed by The Fund’s board to determine the award. To launch The Fund, Spirit Hub has made an initial $10,000 donation to be distributed to distillery recipients by the Board. In early 2021, Spirit Hub will launch the contribution matching program, whereby the company will match all donations made to The Fund by Spirit Hub’s customers. The Fund has been created as an independent entity and its charitable operations are in compliance with industry regulations at the federal and state level. http://www.spirithubfund.org/.
KOHANA RUM
At the end of 2020 Kohana had two new limited releases. First was Kila, a cask-strength, 2-year old rum made from Manulele cane and finished in sherry casks for 8 months. The proof is variable (110 to 125 proof) and is handwritten on the label. The second release was the Koho Artist Series 2020, a collaboration with world famous photographer Kim Taylor Reece. Each bottle was individually chosen, etched, sealed and signed by the artist and bottled at 90 proof. https://www.kohanarum.com/
SELVAREY RUMS
After quietly garnering awards and critical acclaim, boutique rum SelvaRey has revealed new packaging, branding and a global campaign. Behind the scenes, musician Bruno Mars has been guiding the process for years, redesigning every aspect of the brand. With the new package now rolling out in high-end retailers, restaurants and resorts across the U.S. and Asia, Bruno and SelvaRey plan to deliver Tropical Luxury, Wherever You Are. “I tried the rum years ago and loved it. It tasted like tropical luxury, like I was on vacation,” said Mars. “So, we started working together, bouncing ideas about how we could show people how this drink makes you feel. Took some years and a lot of Piña Coladas but, dare I say, we did it.” Distilled in the jungles of Latin America by a legendary master blender, SelvaRey (which loosely translates to “King of the Jungle”) quickly won favor with the most discerning spirit enthusiasts, landing in Michelin-starred restaurants and catching the attention of the multifaceted Mars. Bruno was instantly inspired by the quality and flavor of the rums. He connected with SelvaRey’s founders and after developing a close relationship, he offered to complement their amazing liquid with his creative vision. “I don’t think there’s anyone else in the world who could have nailed this all so perfectly the way he did,” added co-founder Seth Gold. “We set out to push the boundaries of the rum category. And Bruno’s taken it to the next level, creating a full-blown world of tropical luxury.” Fine enough to sip on the rocks or enhance any cocktail, SelvaRey has been awarded 94 and 95 points from The Tasting Panel magazine for its core expressions, White and Chocolate, respectively, and garnered countless other industry accolades. With additional new expressions slated to roll out in the coming months, along with ad campaigns spanning the globe, Bruno and SelvaRey expect to make 2021 a breakthrough year for rum worldwide. SelvaRey White, a delicate combination of rums aged in bourbon barrels. A three- year-old-rum brings the vibrancy and youth of fresh-cut sugarcane, which is rounded out with notes of caramel and butterscotch from a five-year-old rum. This blend is lightly charcoal-filtered to remove the color, leaving elegance in its place. SelvaRey Chocolate is a full bodied, five-year-old rum with inherent richness, enhanced by the infusion of natural chocolate. The velvety aged blend creates a sophisticated spirit, perfect for sipping on the rocks or mixing into any coffee cocktail. www.selvarey.com.
CRAFT BEVERAGE AND MODERNIZATION
TAX REFORM ACT
On December 27th, the $2.3 Trillion Government spending package was signed into law, which includes making the Craft Beverage and Modernization Tax Reform Act (CBMTRA) permanent. The signing gives the country’s 2,200 craft spirits producers much-needed, permanent tax relief and parity with their counterparts in beer and wine, who have enjoyed lower rates for many years. Under CBMTRA, distillers pay a reduced excise tax rate of $2.70 per proof gallon for the first 100,000 proof gallons of distilled spirits (most craft distillers fall into this category); a rate of $13.34 per proof gallon for the next 22,130,000 proof gallons of distilled spirits; and a rate of $13.50 per proof gallon for production in excess of 22,230,000 proof gallons. On the American Craft Spirits Association website, Margie A.S. Lehrman, ACSA CEO said “As our country and industry face a challenging year ahead as we collectively recover from the direct, devastating impact on our businesses due to COVID-19 shutdowns, we applaud Congress, and in particular, Sen. Ron Wyden (D-OR) and Sen. Roy Blunt (R-MO), for working together on both sides of the aisle to support our community of 2,200 small businesses and do what is vitally important to keep our industry afloat. This isn’t just a victory for our industry, but also the peripheral industries we support, including U.S. agriculture and hospitality. Today, we celebrate a major milestone in the fight for parity with craft beer and wine and thank the key Congressional leadership for their tireless efforts.”
NEW TTB RULING
Up until last month, U.S. consumers were limited to seven bottle sizes for spirits: 50, 100, 200, 375, 750, 1000 and 1750 ml. European bottlers and distributors used other sizes, including 700 ml. Consequently, these companies would have to produce a bottle for the United States (750ml) and a bottle for other markets (700ml). For smaller bottlers with limited releases that was not always financially feasible. On December 29th, the Alcohol and Tobacco Tax and Trade Bureau (TTB) ruled to add four new “standards of fill”, 700, 720, 900 and 1800 ml. Hopefully, this new ruling will allow U.S. consumers access to the wide variety of rums that our European brothers and sisters have enjoyed for so long. https://www.ttb.gov/distilled-spirits/notices-of-proposed-rulemaking
