Diageo defends Captain Morgan rum trial

Diageo has insisted that a trial production method for its Captain Morgan rum is legal and meets federal standards, despite being questioned by the Government of the Virgin Islands.

Diageo is trialling a new production method for its Captain Morgan rum brand

The UK drinks group receives subsidies from the government, including a substantial income tax break, to produce its Captain Morgan brand on the island of St Croix as part of a 30-year deal.

However, the group has been questioned by VI Department of Justice officials after attempting to trial a new distilling process using a “sugar cane intermediate”.

The substance is imported from outside of the Virgin Islands, prompting authorities to question whether Diageo had breached its agreement with the government, which requires the group to create its rum in the VI territory.

Diageo claims that in January, the group informed VI Governor Mapp of its intention to test the new distilling process, which is “compliant” with regulations according to the US Alcohol and Tobacco Tax and Trade Bureau (TTB).

A Diageo spokesperson commented: “[We] continue to innovate and test distilling processes and techniques. Some of these distilling techniques are used throughout the Caribbean, and may help improve plant efficiency, our environmental footprint, and productivity.

“As part of this, we have been testing a new distilling process using sugar cane intermediate, in which a minority amount of this ingredient, which we would be bringing from outside the territory, would be added into our distilling process along with molasses.

“Some tankers of this ingredient are now being questioned by the VI Department of Justice officials. As with all our distilling methods, the use of sugar cane intermediate is not only legal and meets federal and local standards, it is also within the boundaries of our agreement with the Government of the Virgin Islands.”

The sugar cane intermediate in question is a base ingredient made from sugar cane that Diageo is testing at “minority levels” to mix with molasses prior to distillation to “enhance” capacity and efficiency.

“We would never have entered into a test of this nature without express confirmation from our regulators that it was compliant,” the spokesperson added.

“Just as we informed Gov. Mapp about the testing of an alternate distillation process, we continue to be open and transparent in our communication with the Government of the Virgin Islands.”