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Legal battle continues over what constitutes Jamaican rum

Jacob Evans

Reporting fromBusiness reporter
Getty/Dave Benett A bottle of white rum on a table with cupsGetty/Dave Benett

Rum is one of Jamaica’s biggest exports

Rum is a key part of Jamaica’s cultural identity, but what exactly makes a rum Jamaican?

That question is at the centre of a dispute that is continuing to rumble on the Caribbean island, as some producers wish to strengthen rules on what can, and cannot, be called “Jamaica rum”.

In October of last year, Jamaica’s Intellectual Property Office (JIPO) approved amendments to the geographical indication (GI) designation for Jamaica Rum that was originally set up in 2016. The biggest change is that ageing the rum overseas is now prohibited.

The amendment was called for by the Spirits Pool Association (SPA), the trade organisation that seeks to speak as a single voice for Jamaica’s six rum distilleries – Appleton (which is owned by J Wray and Nephew), Clarendon, Hampden Estate, Long Pond, New Yarmouth and Worthy Park Estate.

The SPO’s argument is that a stronger GI is needed for the appellation to be officially recognised in its two key export markets – the EU and the US.

It says this would give Jamaican rum better protection against competitors, and lead to more drinkers recognising it as a premium product made to high specifications in a certain geographic location.

But the amendment has caused quite a stir in Jamaica, because one of the biggest producers claims it would put it out of business.

This company, National Rums of Jamaica (NRJ), owns Long Pond and 73% of Clarendon. NRJ is comprised of three shareholders – the government of Jamaica, Demerara Distillers of Guyana and the Barbados-based West Indies Rum Distillery (Wird).

The key factor is that Wird has since 2017 been owned by French spirits firm Maison Ferrand. Its business model relies heavily on exporting rum in bulk and ageing overseas – something not allowed under Jamaica’s new GI.

It argues that rum aged outside of Jamaica is still Jamaican rum, and that the island has exported and aged rum abroad for centuries.

And so, the NRJ is appealing the ruling of JIPO, with a hearing scheduled for 28 April.

Getty Images Rum barrels stacked upon eachotherGetty Images

The dispute centres on whether rum made on the island but aged overseas can still be called Jamaican

The Spirits Pool Association says that Wird only started to have issues with the geographical indication after its takeover by Maison Ferrard.

“What we’re saying is, if you truly believe in Jamaica rum, age it in Jamaica,” says Christopher Gentles, general manager of the SPA.

Rum is typically made by fermenting and then distilling sugarcane molasses, the thick treacle-like substance leftover after refined sugar has been produced from the harvested plants.

Mr Gentles says that ageing the rum before it is sold is of paramount importance, and that doing so outside of Jamaica invalidates the products authenticity and uniqueness. And so, he adds that “we were a little bit puzzled” by the NRJ’s objection.

The SPA also points out that exporting and ageing spirits overseas means Jamaica misses out on the value-added processes like refining, bottling, labelling and distributing as well as other secondary benefits to the local economy like rum tourism.

Both the NRJ and Maison Ferrard declined to comment.

The use of GIs makes a product distinctive, and opens up three potential sources of value, according to Dev Gangjee, professor of intellectual property law at the University of Oxford.

“The first is simply a price premium. Research shows products can charge a price that is 1.5 to 2.7 times more than standard.”

This isn’t always reflected in profit as GI products are often more expensive to make, he adds.

The second reason is “they anchor production in that region”. This stops a product from becoming generic and losing its value – like cheddar cheese, which was originally from a specific part of the UK but is now a by-word for a generalised type of cheese.

Lastly, Prof Gangjee says GIs help to advertise the region and “opens up other aspects of history and geography”, citing France’s successful wine tourism industry.

Examples of successful and longstanding GIs are Scotch whisky, champagne, and Parma ham.

Getty Images/Debbie Ann Powell A shack selling Appleton Estate Rum with tourists sat outside. Getty Images/Debbie Ann Powell

Rum tours are a popular tourist activity across Jamaica, where visitors can learn about the drink

Another Caribbean country similarly embroiled in a dispute over GI and rum is Barbados. Currently the island doesn’t have a scheme.

Barbados has five distilleries and four agreed on the wording of a proposed Barbados rum GI. The sole objector was Wird, which owns brands such as Cockspur.

Similarly to the situation in Jamaica, it objects to the proposed rules against ageing overseas.

The failure by Barbados to obtain a GI has frustrated the other producers, including Richard Seale, owner of the island’s Foursquare distillery. “We need to have intrinsic industries that are rooted here, tied here, that cannot be separated from here,” he says.

Getty Images/Tony Arruza Two men rolling rum barrels Getty Images/Tony Arruza

Rum is Barbados’ biggest export with the US, Canada and EU the top recipients

Back in Jamaica, the SPA wants the country’s rum to apply for the EU’s Protected Geographical Indication classification, but this cannot happen until the proceedings at the JIPO have concluded.

Mr Gentles hopes that a compromise can be reached, even if it means that both sides are not totally happy. “It is my firm believe that one day we will put this behind us,” he says.

And while the SPA hopes that a stronger GI will boost acclaim and business, it is also about pride in a product intimately linked to Jamaica’s history.

In the days following the October ruling Jamaican newspaper, The Gleaner, endorsed the JIPO decision, saying there were many examples of firms “with no association to Jamaica attempting to appropriate the mystique of the island’s brand”.

It concluded: “When foreign entities become owners of uniquely Jamaican products, there should be a commitment to robustly maintain the integrity of the brand.”

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