Rumpundit » New Rum

Black Tot Day! 31 July 1970-2010 RIP

ian — Thu, 29 Jul 2010 14:13:11 +0000

Ian Williams, Rumpundit, commiserates Black Tot Day.

Saturday 31 July is the 40^th Anniversary of Black Tot Day when the Royal Navy abandoned the daily grog ration for its sailors. Do hoist a dark rum to mark the occasion. The British decision to abandon a centuries-old tradition of high octane fighting spirit and replace it with high megaton Trident submarines has proven to be a financial and naval disaster. When it waived the rum rules, Britannia abandoned all pretension of ruling the waves!

The first reference to Navy rum was by Samuel Pepys, who although best known for confiding his sex life to his diary, was the civil servant in charge of the Navy. He authorized the Navy in the Caribbean to issue rations of rum to the sailors based in Jamaica.

Soon, however, rum was a major constituent of the Navy’s fuel supply. Admiral Vernon, after whom George Washington’s home Mount Vernon was named, decided that it was better for the health and safety of his ships and crew to mix the rum with water before issuing it, and to issue the half pint in two servings. He was known as “Old Grog” because he wore a waterproof cloak made of “grogram,” a mixed fabric that served before oil-skins and that gave the name to the mixture.

His orders were that the grog was to be mixed in a “scuttled butt.” The idea that scuttlebutt was sailor’s chat around the water cask is a post-Prohibitionist invention. It was the rum barrel that loosened the tongues of the eagerly waiting tars.

Navy regulations insisted that once the grog had been mixed, it had to be served promptly, otherwise it would thrown overboard, because it went “flat.” I’ve experimented with Pussers, still made to the original recipe, and it’s true! While the rum is in a colloidal suspension in the water the droplets of rum hit the tastebuds and taste as strong as normal spirits but once they are dissolved it tastes like watered rum!

The US Navy initially adopted British grog rations but then under influence from the growing whiskey industry, swapped over to what was presented as a more patriotic spirit after 1806. During the Civil War, the US Navy abolished the ration completely, perhaps taking advantage of the connection between abolitionism and prohibitionism, both of them gaining the upper hand with the departure of Confederate personnel. However it was only the ratings who were deprived. It was not until 1913 that officers were coerced into official abstinence.

In contrast, the British Admiralty was frankly scared of the mutinous consequences of depriving ratings of their historical entitlement, and it kept issuing Royal Navy rum, until 1970, when they overcame public nostalgia by breathalyzing the pilot of a nuclear submarine after he had drunk his ration.

In fact, for centuries, the Royal Navy had maintained naval supremacy despite often inferior technology compared with its Spanish and French rivals, because its crews, pressganged or volunteers, outfought their enemies. And looking at it analytically, the major observable difference was the rum ration, which is why wanabee naval powers like Czarist Russia and Japan also served up rum.

British captains and admirals still have the discretion to order “Splice the mainbrace!” for special occasions, however, and naval lore is still steeped in rum, which in Britain was known as “Nelson’s blood,” since allegedly the devoted tars donated their rations to bring the Admiral’s body back from Trafalgar to London.

I checked it out in the Gibraltar library in the contemporary newspapers, and sadly, the Admiral’s body was carried back to London pickled in Spanish Brandy, aguardiente. Perhaps the tars did not want to waste the good stuff… but I have not been able to prove or disprove the story that the coffin was drained by the time it arrived in Britain. The tars might have preferred rum – but any spirit in a drought was long-standing tradition.

This week Sukhinder Singh of Speciality Drinks in London launched Black Tot – an exclusive bottling of Navy Rum over 40 years old – a find for rum-drinkers equivalent to discovering Tutankhamen’s pickled stiff, except the archaeologists never brought the young pharoah back to life, while the old rum has indeed been revived. It was in sealed ceramic flagons allowing its unique biochemistry to play out over almost half a century.

In the Admiralty, the most coveted job was to sit on the committee that each year assessed what proportions of Jamaica, Trinidad and Demerara rums was consistent to maintain the formula, and Speciality’s experts have topped up the work of all of those departed palates to ensure that the bottles live up to expectations.

If you can’t get some, then up spirits on Saturday with any dark rum and shed a tear for bygone glory!

Appleton 30 hits UK

ian — Wed, 28 Jul 2010 13:00:44 +0000

Appleton launches 30-year-old rum
Valentino Perez knows first-hand what a tricky art distilling alcohol can be. The owner of Guam’s Own distillery, Perez has spent months perfecting the recipe for rum and whiskey.

“There’s a ton of technical knowledge involved,” says Perez, whose Guam’s Own products have been on retail shelves since March.

A former financial analyst and commercial banker, Perez decided to put business and science skills — he has an undergraduate degree in engineering and a master’s in business — to work.

“I have a good history in chemistry and physics,” says Perez. “And that coupled with the fact that I used to brew beer back in college, made the learning curve extremely short.”

Using a still in an Anigua warehouse, Perez says he worked to perfect the distillation process, which uses fermented carbohydrates and sugar to create a “mash.” If the distillation from the mash isn’t just right, you can end up with a product that’s rough going down, says Perez.

“We’ve had a lot of trial and error with this, we’ve come up with a product that we absolutely adore,” says Perez. “We’re very proud of how smooth our product is.”

But, it’s not just the technical process of making the spirits that Perez had to get the hang of. Like many local entrepreneurs, Perez has had to struggle with how to market the product in a place where more established, off-island brands can actually be cheaper than locally made products.

“It’s extremely hard to be competitive with anything made on this island,” says Perez.

He’s hoping the business will find a niche market for people seeking products made on island, as well as those seeking a smooth shot.

So far, so good.

Irene Mesa, owner of the Hagåtña cafe Barista Blends, decided to switch from her usual brand of rum to Guam’s Own to make the her cafe’s rum cake. The result is a light and fluffy dessert with a edgy rum bite. She says that interest from her customer base increased when she told them she used locally produced rum for her popular rum cake.

“You actually get a lot of people wanting to try it, and get a lot of good feedback about it,” says Mesa. “They have said ‘yeah, this does taste better,’ compared to the one I used before.”

Mesa says despite the rum’s higher cost, she now prefers it to other brands.

“His product is really good so I consider it more of a premium product, compared to the rums I buy,” says Mesa.

While the distillery currently only offers rum and whiskey, Perez says he has experimented with vodka, and hopes to soon roll out a line of aguayente — the name for a traditionally home-brewed local spirit that roughly translates as “moonshine.”

“It’s a matter of going back to tradition,” says Perez.

And although the company faces tough competition on an island where locally made doesn’t necessarily bring an immediate cachet to the minds of consumers, Perez hopes that the quality and unique local stamp of the product will attract locals and tourists alike.

“This is not some off-island company saying ‘Hey, here’s stuff made on Guam,’” says Perez.

“It’s kind of cool when you can say I know the guy that made that.”

New old Canada Rum

ian — Mon, 12 Jul 2010 14:38:40 +0000

Charlottetown pub offering unique brand of Island-made rum

AL MACLEOD
The Guardian

The Merchantman Pub in Charlottetown is selling its own unique brand of rum called Merchantman 1897. It is distilled by Prince Edward Island Distillery in Hermanville, near Souris. From left are Julie Shore, master distiller, Donna MacNeill, pub customer, and owner Peter Hyndman. Guardian photo by Brian McInnis

It’s been over 100 years since rum was last distilled legally on P.E.I. but the drought has come to an end with the Merchantman Pub now offering an Island-made rum on its drink menu.
Over 100 guests packed the pub and got a sample of Merchantman 1897, brewed by Prince Edward Distillery in Hermanville, Sunday before it was officially made available to the public today.
The amber rum is barrel-aged, all natural, non-filtered and double distilled to give it a unique flavour of caramel and apricot with a hint of vanilla.
Peter Hyndman, owner of the Merchantman Pub, said he is happy to be the only establishment on P.E.I. to be able to offer the Island-made rum.
“I find it is important to be a leader in the industry to try to introduce a new product to the consumer and celebrate the fact we are the only location on P.E.I. to do this,” Hyndman said.
The rum is a joint venture between the Merchantman Pub and Prince Edward Distillery and the recipe has been modified a few times since the process to create it was started almost three years ago. Merchantman 1897 is exclusive to the Merchantman Pub and an agreement is in place to ensure it will only be available at the location.
He came up with the idea and the name Merchantman 1897 because 1897 was the year his great-grandfather, Charles Hyndman, with the company Hyndman and Morris, stopped producing rum on P.E.I., Hyndman said.
“I thought, ‘Why isn’t there someone producing rum on P.E.I.?’”
He is thankful to the P.E.I. Liquor Commission for licensing the rum and making it possible to have such a unique product available at his pub, Hyndman said.
“They are very supportive of local people on P.E.I. to try to support new products.”
Julie Shore, owner and master distiller of Prince Edward Distillery, said the rum is as natural as possible and a true Island-made product.
“It’s just what we create and what the barrel creates. It’s just a true rum,” Shore said.

Rum Ratings in USVI

ian — Thu, 08 Jul 2010 12:44:45 +0000

One hopes for the VI’s sake that the rating agencies are more accurate with this than mortgage-backed securities!

Rumpundit

Fitch Affirms Virgin Islands Cruzan Matching Fund Bonds at ‘BBB’; Outlook Stable

NEW YORK–(BUSINESS WIRE)–Fitch Ratings assigns the following ratings to the Virgin Islands Public Finance Authority’s (VIPFA) subordinated revenue bonds:

–$42.2 million (Virgin Islands matching fund loan note-Cruzan project) series 2010A ‘BBB’.

The bonds are expected to sell via negotiation the week of July 19.

In addition, Fitch affirms the following rating:

–$39.2 million (Virgin Islands matching fund loan note-Cruzan project) series 2009A at ‘BBB’.

The Rating Outlook is Stable.

RATING RATIONALE:

–Matching funds are an established revenue stream based on federal law; payments made by the U.S. Treasury are transferred to escrow for payment of debt service on matching fund revenue bonds prior to being made available to the U.S. Virgin Islands (USVI) for other purposes.

–A debt service reserve is funded at the lesser of maximum annual debt service (MADS), 10% of principal or 125% of average annual debt service.

–Coverage has been solid over the last decade, benefiting from consumer trends in the U.S. market. Coverage is expected to be boosted by planned expansion of Cruzan production and completion of the Diageo facility over the next two years.

–Payment on the bonds is ultimately dependent on ongoing Cruzan rum production in the territory, which itself is tied to continuation of federal matching fund program, the availability of incentives and production subsidies from the USVI.

–Future revenues may be affected by changes in consumer tastes or purchasing habits.

KEY RATING DRIVERS:

–Uninterrupted rum production and continued U.S. support for the cover over program and the current USVI system of incentives;

–Maintenance of sufficient coverage based on continuation of rum production;

–On-schedule completion of the Diageo facility.

SECURITY:

Special, limited obligations of VIPFA payable from and secured by a pledge of and lien on the Cruzan trust estate, primarily matching fund revenues associated with the Cruzan facility after payment of obligations under the senior indenture.

CREDIT SUMMARY:

The rating on the Cruzan project bonds is based on the strength of the revenue stream supporting bond payments, consisting of matching fund payments made annually by the U.S. government transferred to escrow for payment of debt service prior to being made available to the government of the U.S. Virgin Islands (USVI). Offsetting factors include project and political risks, as well as longer-term risks associated with consumer demand for rum products and ongoing production in the USVI. The Stable Outlook is based on the expected continuation of matching fund payments by the U.S. government.

Cruzan project matching fund bonds are special, limited obligations of the PFA, issued under an indenture (Cruzan indenture) established in 2009 and subordinate to bonds issued under a 1998 senior indenture (1998 indenture). Proceeds of this sale are funding additional facility improvements at the existing Cruzan VIRIL distillery. A total of $105 million in debt is authorized for expansion projects at the Cruzan distillery, part of a broader 30-year incentive agreement that closely mirrors the incentive agreement reached in 2008 between the USVI and Diageo plc (see Fitch’s release of June 19, 2009). Including the current sale, a total of $81.4 million in Cruzan indenture bonds will be outstanding. A debt service reserve funded at MADS provides additional protection.

Matching funds have been paid annually to the USVI by the U.S. government since 1954 based on sales in the U.S. of USVI rum. Funds are paid at a base rate of $10.50 per proof gallon in place since 1954 and with periodic increases in recent years to $13.25 per proof gallon. The $13.25 rate expired Dec. 31, 2009, pending renewal by the U.S. Congress of the higher rate. The higher rate has been repeatedly renewed in the past; should the increase not be extended, the rate would remain at $10.50. The annual payment is calculated from projected sales of USVI-produced rum in the U.S. in the following fiscal year, adjusted by an amount reflecting the difference between estimated and actual sales two fiscal years prior. The bonds include a covenant that if matching fund revenues are replaced with another federal funding stream, the USVI will use its best efforts to use the substitute revenues for bond repayment.

The additional bonds test (ABT) for the Cruzan indenture requires that new issuance meet a three-year historical and two-year prospective MADS coverage test at 1.5 times (x) debt service for senior lien and 1.5x for second lien after payment of senior lien debt service, and two-year prospective MADS coverage at 1.2x combined senior and second liens. All Cruzan issuance to date, including the current bonds, has been on the senior lien. Currently no additional Cruzan bonds are scheduled, although approximately $28 million in authorization would remain. Project completion bonds up to $10.5 million are not subject to the ABT.

Coverage of debt service has been adequate, with fiscal 2009 matching fund receipts covering debt service (to date all on 1998 indenture bonds) at 2.25x. Including the new Cruzan indenture bonds, coverage by 2009 actual revenues of aggregate MADS for Cruzan indenture bonds and all outstanding 1998 indenture bonds (inclusive of a scheduled sale this week of 1998 indenture bonds) would be 1.27x. (Fitch rates the 1998 indenture senior and subordinate lien bonds ‘BBB+’ and ‘BBB’, respectively.)

Future coverage is expected to grow substantially with completion of the Diageo distillery by Diageo plc (rated ‘A-’ by Fitch, with a Stable Outlook) and expansion of the existing Cruzan-VIRIL distillery, owned by Fortune Brands (rated ‘BBB-’ by Fitch, with a Stable Outlook). To finance the two projects, in 2009 VIPFA established separate, subordinate indentures for each; $250 million has been issued under the Diageo-related indenture (Diageo indenture). All matching fund receipts, including those to be generated by the new Diageo distillery, benefit 1998 indenture bonds first. After satisfying requirements under the 1998 indenture, excess receipts from Cruzan and Diageo-generated matching funds are transferred to separate special escrow accounts based on each facility’s production. Receipts from Cruzan VIRIL-related matching funds are not available to Diageo indenture bondholders after payment of 1998 indenture bonds, nor are future Diageo-related matching fund receipts available to Cruzan indenture bondholders. Excess revenue following payment of debt service on all indentures is used to meet various incentives under the USVI’s agreements with the distillers.

Under various alternative scenarios analyzed by Fitch, projected matching fund revenues provide for sufficient annual debt service coverage on outstanding and planned matching fund bonds, including assuming that the $13.25 rate is not renewed and the matching fund rate remains at $10.50. Including issuances under the Diageo and Cruzan indentures, annual coverage likewise remains adequate at either rate assuming timely completion of the Diageo facility. At the lower rate, coverage of MADS on all indentures combined (in 2022) would require revenue growth. Diageo distillery construction is reported to be advancing on schedule, with some associated revenues to be received later in 2010. Other political risks include drafted U.S. legislation questioning the USVI’s use of matching funds for economic development incentives; passage of such legislation in Fitch’s view is remote.

The ABT for the 1998 indenture bonds excludes all matching fund receipts associated with the Diageo and Cruzan projects that are required to meet debt service, debt service reserve and certain other required payments under the Diageo and Cruzan indentures. Both Cruzan and Diageo must consent to 1998 indenture issuance. Issuance on the 1998 indenture senior lien bonds is at the ABT limit (including the sale of 1998 indenture senior and subordinated bonds scheduled this week). There will be approximately $927 million in 1998 indenture bonds following the sale (see Fitch’s release of June 15, 2010).

U.S. consumption of distilled spirits, including rum, has grown steadily in recent years based on shifting consumer tastes and the increasing attractiveness of premium products. Rum consumption in the U.S. is subject to broader shifts in consumer demand; average demand declined by approximately 1.5% annually during the 1985-1995 period but has increased by an average of 5.3% annually since. Despite the recession, rum consumption rose 1.6% in 2009 but is forecast to fall 1.9% in 2010 before resuming growth. Most USVI rum exported to the U.S. is bulk rum, representing approximately 13% of the U.S. market. Growth will be linked to completion of the Diageo facility and expanded shipment of branded rum from both facilities.

Applicable criteria available on Fitch’s web site at www.fitchratings.com:

–’Tax-Supported Rating Criteria’, dated Dec. 21, 2009;

–’U.S. State Government Tax-Supported Rating Criteria’, dated Dec. 28, 2009.

Additional information is available at ‘www.fitchratings.com‘.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

Contacts

Fitch Ratings, New York
Douglas Offerman, 212-908-0889
Alexandra Edwards, 212-908-0181
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

Little White Lamb, who made thee?

ian — Wed, 07 Apr 2010 13:19:30 +0000

I grew up on Lamb’s Navy Rum, so I have a sentimental attachment to the brand! _ Rumpundit.

Lamb’s White Rum listed in Tesco

Tuesday, 06 April 2010

Halewood International, leading drinks manufacturer and distributor, has announced further success for its recently launched Lamb’s White Rum with new listings in just under 200 Tesco stores across the country.Lamb’s White Rum, which launched in October 2009, has enjoyed growing success in the Off-Trade securing listings in Bargain Booze as well as Tesco with a fantastic uptake by consumers and encouraging early sales.

The launch of Lamb’s White Rum marked the second ever diversification of the premium Lamb’s brand, just six months after the successful launch of Lamb’s Spiced Rum, both with the aim of introducing the Lamb’s brand to a new younger more contemporary audience.

Senior Brand Manager for Lamb’s, Sue Beck comments: “Lamb’s White Rum has seen a successful start to the year gaining new listings in the Off-Trade including Tesco, and showing positive signs of becoming a serious contender in the mass market White Rum sector.

Source: Lamb’s

Indian Risky!

ian — Mon, 11 Jan 2010 14:03:48 +0000

So, if you add Indian “whiskey” production to their rum-making, which under EU and US law you could, it must easily confirm India’s position as the world’s number one rum producer. I offer my own marketing solution..Indian makers of molasses based “whiskey” should sell it as “Risky” and enhance the sense of adventure..
Rum Pundit.

In high spirits: Grain-based 8PM attracts consumers
Seema Sindhu / New Delhi January 11, 2010, 0:49 IST

Sells about 2 million cases within six months of launch

Radico Khaitan’s attempts to make its flagship 8PM whiskey “contemporary” seem to be paying off. Within six month of launch, the grain-based variant of the whiskey has sold about 2 million cases. This move is expected to take 8PM volumes to 5 million cases by the end of 2009-10. All told, the Indian whiskey market is estimated at 160 million cases.

The whiskey market is highly competitive. There are several brands at various price points, companies cannot advertise and liquor shops offer little scope for point-of-sale promotion. The shopkeeper often hands out the bottle closest to him, though things have begun to change in modern retail outlets in the metros.

To make an impact, Radico Khaitan (the company derives its name from its distillery at Rampur in Uttar Pradesh and the family which controls it) came out with grain-based 8PM whiskey some six months back. Worldwide, whiskey is made out of grain. But in India, distillers use molasses, a byproduct obtained from sugarcane when it is crushed to make sugar, possibly because of its easy availability. Liquor lobbies abroad have therefore resisted all moves by Indian companies to sell their stuff abroad — it’s not whiskey, they argue, and should be called Indian spirit.

But, with rising incomes, Indian consumers want proper whiskey. The lead was taken by rivals like Bagpiper and McDowel’ No 1 which launched grain-based whiskies some time back. 8PM was the third to do so. To begin with, Radico Khiatan test-marketed it in Haryana and Punjab, the top whiskey markets in the country. Based on the response, it recently launched it pan-India. “We have seen good volume growth in 8PM sales in the last six months as compared to the corresponding period previous year,” a company executive says.

The company did research in five areas for the grain-based 8PM: Blending, positioning, packaging, consumer and price. Grain-based whiskey is more mellow and smooth than molasses whiskey. This calls for new package and price. So, Raidco Khaitan worked out a new pack for the new offering — it sports a younger and vibrant look with a prominent grain picture — but it is priced the same as regular 8PM whiskey. Some analysts say that this is a cosmetic change which may not register with consumers. OC&C Strategy Consultants Director Sridhar Venkiteswaran says: “An ordinary consumer would rarely bother to check if it’s mollasses or grain. But 8PM has a strong franchisee and that has worked for it.”

Radico Khaitan has set up a separate plant in Rampur, with an investment of more than Rs 150 crores, to make grain-based whiskey a year back which has the capacity to produce 27 million litres of grain-based alcohol. There could be another reason for the switch. In the last several months, molasses prices have skyrocketed by almost 125 per cent, thanks to the small sugarcane crop. The prices are expected to remain high for at least one more year. Gain prices too have risen during this period, but by a modest 5 to 10 per cent. This should help Radico Khaitan keep a lid on its prices.

8PM is among the top whiskey brands in India, Bagpiper of United Spirits and Officer’s Choice of Herbertsons being the leaders. Radico Khaitan had been adding fizz to the 8PM brand in various ways. In 2003, it had extended 8PM to rum with 8PM Bermuda which is doing very good in Andhra Pradesh. In 2004, it extended it to brandy also with 8PM Excellency Brandy, which is doing very well in Kerala.

Radico Khaitan had launched 8PM whiskey in the 1990s. It has overtaken Contessa rum to become the company’s flagship brand. In the initial years, the company had supported it with some innovative advertising which played on friends getting together for a drink at 8 pm. The advertisements of course were surrogate but they helped the brand immensely. But, rivals from the industry say, Radico Khaitan has not been able to build a brand after 8PM. The focus clearly is on 8PM.

Ord River Rum rows upstream.

ian — Tue, 29 Dec 2009 15:01:48 +0000

Big boys give liquor man a rum deal in the cities

* Tony Barrass
* From: The Australian
* December 29, 2009 12:00AM

RAYMOND Bernard Dessert III, better known around the east Kimberley town of Kununurra as Spike Dessert, doesn’t want to sound paranoid, but he’s certain there are forces out to get him.

The American-born farmer and distiller with the booming voice gets cranky about “the big boys” he claims are using their influence to stop him selling his Ord River Rum — some of it up to 64 per cent alcohol — in the big southern markets such as Sydney and Melbourne.

Spike, 65, a proud member of the Australian Distillers Association, wants to expand his well-known Kimberley hoochery and build it into a lucrative business before he’s “otherwise disposed”.

“The big distillers seem to have carved up their patches, who sells what and where, which means us little fellas can’t push our way into the bigger markets,” he said.

“I know that pubs and bottle shops in the big markets have been threatened with losing their special discounts if they allow any small player like me to sell at their outlets. They tell me they want to sell it, but it would be suicide for them if they did.

Start of sidebar. Skip to end of sidebar.

“They can rest easy. I’m hardly going to knock off the big boys. But I just think the whole scenario is anti-competitive. If I’ve got a good rum, I should be able to sell it through an outlet.”

Regardless of this, he says he’s going to lift production over the next few years. He proudly shows off his latest acquisition: a freshly painted, bright red sugar mill just arrived from Colombia.

“It can grind one tonne of sugar cane an hour,” he said. “That means that I can grow the cane out the back, process and distill and do the whole lot from start to finish.

“But I think it’s outrageous that I’m basically limited to cellar door sales here and some pubs up here because of these backroom deals.”

Spike is used to fighting convention. He arrived in Kununurra from southern California’s Imperial Valley in 1972 after Democrat presidential hopeful George McGovern threatened to ban corporate farming and take control of irrigation.

“That was enough for us,” he said. “You’ve got to remember this is when Mao was waving his Little Red Book around in his hand; McGovern had his in his back pocket. We were in the seed business so we went looking for greener pastures. We wanted a place that was frost-free, had plenty of water and a stable government.

“That just about ruled out everywhere except Australia.”

Since then he’s grown everything from asparagus to corn to melons in the rich alluvial soils of the Ord River.

Like everyone else in the Top End, he’s excited about the prospect of stage two of the irrigation scheme going ahead.

“You name it, I’ve grown it up here,” he said. “But the market’s limited and the freight costs here are very prohibitive.”

Spike, who names his dogs after US presidents (“I had a shifty looking thing a few years back so I called him Richard Nixon”) plans to launch a special anniversary rum next year to coincide with a decade in the business.

Novia Scotia Rum

ian — Fri, 11 Dec 2009 16:07:39 +0000

A safe harbour for N.S. rum
Lunenburg distiller to make traditional and new libations
By CHRIS LAMBIE Business Editor
Fri. Dec 11 – 4:46 AM

A Lunenburg couple opening the South Shore’s first distillery this spring had not planned, at first, to make rum.

But in a town built on the trade of salt fish for what is arguably one of the West Indies” most intoxicating exports, the locals were persistent.

“So many people came by and looked at us and said, ‘You’re making rum, aren’t you?’ So we felt like traitors if we didn’t,” said Lynne MacKay, who, along with her partner Pierre Guevremont, owns Ironworks Distillery Inc.

“That tipped the balance in rum’s favour, for sure,” Mr. Guevremont said.

“We thought we better explore this one, otherwise people are going to think we’re crazy being in Lunenburg and not producing rum.”

Their idea had been to stick to raw ingredients indigenous to the area.

“Sugar cane’s a little tricky to grow in Nova Scotia, so we had to go with molasses,” said Ms. MacKay, noting theirs is coming from Crosby Molasses Co. in Saint John, N.B.

While they’ve now made rum, they aren’t sure yet what type it will be.

“Once it comes out of the barrel, we’ll know,” she said.

“It would be our preference not to add anything. A lot of rums have food colouring and caramel added to them. Not to say that’s bad or good. It’s just the way it is. But there are pure rums that are just the molasses fermented, and distilled, period. And, of course, to call it rum in Canada, you have to age it for a year in wood.”

The rum is now sitting in Kentucky bourbon barrels.

“It will probably be golden, I suspect, but it’s a bit of an adventure,” Ms. MacKay said.

By contrast, the apple vodka Ironworks is producing doesn’t need to meditate in the dark before drinking.

“Vodka hops out of the old still and says hello,” Ms. MacKay said.

“You can taste the apple. It sneaks up on you at the end. . . . There’s a richness and a texture and a complexity to it that is quite lovely.”

While she enjoys it neat, the apple vodka can be used for mixed drinks.

“I have a very good friend who just put it in 7Up the other day and said, ‘This tastes really good,’” Ms. MacKay said.

“I think that’s just a travesty.”

The couple is using Annapolis Valley produce to make apple vodka and fruit brandies, also known as eau de vie in France.

“And actually the apple vodka is turning out rather well, if I do say so myself,” Ms. MacKay said.

“The Macintosh have done very well by us, but the Golden Delicious are certainly looking good as well.”

They also hope to use local pears, strawberries, peaches and cranberries for high-end booze.

“I missed by a day and a half getting 1,000 pounds of arctic kiwi,” Ms. MacKay said.

The pair moved to Nova Scotia from Ontario about five years ago. Mr. Guevremont still owns a stock photography company in Toronto and Ms. MacKay, who is a Windsor native, left the film and television business, where she was a costume designer.

The couple, in their fifties, bought the old blacksmith’s shop at the corner of Montague and Kempt streets this past summer. Built in 1893, the post-and-beam structure has a rich history that lends its name to the distillery.

“It’s got an amazing floor in it that shows the history so tangibly,” Mr. Guevremont said.

“It’s worn and eroded in places and burnt in places from the cinders flying from the forges. It’s a work of art.”

Ironworks is aiming to produce about 5,000 litres of premium spirits a year.

“What attracts us to it is the fact that it is sustainable at a smaller size,” Mr. Guevremont said.

“There are no grand plans to take on Seagram’s.”

While the still the company’s using now looks like an overgrown chemistry project, that will soon change.

“The one that’s coming in February is exquisite,” Ms. MacKay said of the Mueller still from Germany.

“(It’s) beautiful and copper and looks like a Jules Verne apparatus with (tubes), portholes and things that bubble.”

The couple has sunk about $750,000 into the distillery, Mr. Guevremont said.

“This is something we enjoy doing and have a passion for,”" he said.

“Typically, for small artisan distilleries, it takes three or four years to achieve what is termed traditional profitability. But as far I’m concerned, it’s wildly profitable already because we are having a ball doing it.”

The couple took a distilling course from Cornell University before jumping into the business about 18 months ago.

They don’t intend to make booze that tastes the same year after year.

“There’s no fun in that,” Mr. Guevremont said.

Instead, they want to experiment with recipes and methods to produce alcohol that changes in taste every year, much like wine.

Their products will likely retail at about $35 or $40 for a 375-millilitre bottle.

“Given the scale of the operation, our cost structure is definitely much higher than the Smirnoff’s of this world,” said Mr. Guevremont, noting Ironworks hopes to sell through the Nova Scotia Liquor Corp. as well as straight from the distillery.

Their wood-fired still will be located in what used to be the blacksmith’s forge, but will soon be the company’s tasting area.

Ironworks plans to open its doors to the public in April.

“I’m thinking that a few people will like it,” Ms. MacKay said of the distillery’s product. “They seem to enjoy local things here.”

( clambie@herald.ca)