Jamaica Rum Industry Divided Over Aging Regulations
Rum, deeply intertwined with Jamaica’s cultural fabric, is at the heart of a contentious debate on the island. Producers are sharply divided over tightening regulations defining “Jamaica rum.”
Geographical Indication Amendment Sparks Controversy
Last October, Jamaica’s Intellectual Property Office (JIPO) sanctioned revisions to the geographical indication (GI) for Jamaica Rum, initially established in 2016. A pivotal alteration prohibits aging rum outside of Jamaica.
This amendment was championed by the Spirits Pool Association (SPA), representing Jamaica’s six rum distilleries: Appleton, Clarendon, Hampden Estate, Long Pond, New Yarmouth, and Worthy Park Estate.
SPA Advocates for Enhanced Protection
The SPA contends a robust GI is crucial for official recognition in the EU and US markets. They argue this fortified GI would safeguard Jamaican rum from competitors and elevate its status among consumers as a premium, geographically distinct product adhering to stringent standards.
However, this alteration has ignited considerable discord in Jamaica. A major producer asserts the new rule jeopardizes its business model.
National Rums of Jamaica Appeals Ruling
National Rums of Jamaica (NRJ), owner of Long Pond and majority shareholder in Clarendon, is at the center of this appeal. NRJ’s stakeholders include the Jamaican government, Guyana’s Demerara Distillers, and Barbados-based West Indies Rum Distillery (Wird).
Wird, since its acquisition by French firm Maison Ferrand in 2017, relies on bulk rum exports and overseas aging—a practice now disallowed under the revised GI.
NRJ maintains that rum aged abroad remains authentically Jamaican and underscores Jamaica’s long-standing tradition of exporting rum for overseas maturation.
NRJ is contesting JIPO’s decision, with a hearing scheduled for April 28.
Debate Highlights Authenticity and Economic Impact
The Spirits Pool Association suggests Wird’s objections arose post-Maison Ferrand acquisition.
Christopher Gentles, SPA General Manager, asserts, “If you genuinely believe in Jamaica rum, age it in Jamaica.”
Rum production involves fermenting and distilling sugarcane molasses, a byproduct of refined sugar production.
Gentles emphasizes aging’s paramount importance to rum quality. He argues that offshore aging compromises the product’s authenticity and uniqueness, expressing puzzlement at NRJ’s opposition.
The SPA also highlights that exporting spirits for overseas aging deprives Jamaica of value-added processes like refining, bottling, and distribution, as well as ancillary economic benefits such as rum tourism.
Both NRJ and Maison Ferrand have declined to comment.
Geographical Indications: Value and Regional Identity
Dev Gangjee, Professor of Intellectual Property Law at Oxford University, explains that GIs distinguish products and unlock valuable opportunities.
He notes, “Firstly, a price premium. Research indicates GI products can command prices 1.5 to 2.7 times higher than standard products.” While production costs may offset some profit gains, the price advantage is significant.
Secondly, GIs “anchor production regionally,” preventing products from becoming generic and losing unique value, as exemplified by cheddar cheese.
Lastly, Prof. Gangjee states GIs promote regional branding, enhancing historical and geographical associations, referencing France’s thriving wine tourism.
Scotch whisky, champagne, and Parma ham are cited as successful, established GI examples.
Barbados Faces Similar Rum GI Challenges
Barbados also grapples with GI disputes in its rum sector. The island currently lacks a formal scheme.
While four of Barbados’ five distilleries agreed on a proposed Barbados rum GI, Wird dissented, objecting to restrictions on overseas aging, mirroring the Jamaican situation.
Richard Seale, owner of Foursquare distillery, expresses frustration over Barbados’ stalled GI progress. He emphasizes the need for “intrinsic industries rooted and tied” to Barbados.
Looking Ahead for Jamaica Rum
Back in Jamaica, the SPA aims to secure EU Protected Geographical Indication status for Jamaican rum, pending JIPO proceedings.
Mr. Gentles hopes for a compromise, acknowledging mutual concessions may be necessary. He remains optimistic that resolution is achievable.
Beyond commercial benefits, the SPA emphasizes pride in Jamaican rum’s deep historical connection to the island.
Following the October ruling, Jamaican newspaper The Gleaner supported JIPO’s stance against entities “with no association to Jamaica attempting to appropriate the mystique of the island’s brand.”
The newspaper concluded that foreign ownership of unique Jamaican products necessitates “a commitment to robustly maintain the integrity of the brand.”