Dear Source:
The investment by Angostura of Trinidad in Todhunter International Inc. should be seen as a positive step.
It means that Angostura does not think that the United States will lower its tax on foreign rum. If it did, the Trinidadians would just expand in Trinidad rather than buy in the territory.
Besides the tax benefit, there is a benefit in terms of lower finance costs. What you are likely to see instead will be joint ventures in such things as the production of V.I. rum, which begins as neutral spirit aged Trinidadian style, and efficiency in purchasing of molasses that will in the future likely be done out of Port of Spain.
Other developments affecting rum are efforts to increase the number of brands produced using V.I. spirit. If you are hooked up with a U.S. liquor retail, hotel or restaurant chain, please contact the Nelthropps about having them arrange the production of an exclusive brand.
Older rums are available and can be made in greater volume with an increase in the proper aging facilities. Most V.I. rum is currently sold as two year while the market is going to premium. Joint ventures involving commercial property owners is also a possibility.
Richard Bond