By Christopher McCollum

It was reported several months ago that the producer of Captain Morgan Rum, Diageo PLC (NYSE: DEO), was going to be getting a new factory in the U.S. Virgin Islands, along with $2.7B USD in tax credits and benefits over the next 30 years, which sparked a bit of controversy as they are a British owned company. With this struck deal, Diageo will be moving the Captain Morgan operations from Puerto Rico, where they’ve been operating for generations, to St. Croix in the Virgin Islands, while potentially putting the rum culture in jeopardy.

Puerto Rican representatives claim that this business move will cost Puerto Rico about $120M annually in lost tax revenue, which at this point in time is an even harder pill to swallow than in the past. In March of 2009, Puerto Rico’s governor, Luis Fortuno, declared that the government there is bankrupt, with a deficit of more than $3B USD, making it the highest deficit-per-capita in the United States. Over the ensuing months, there have been plans implemented to lay off potentially 30,000 government workers, and to slash salaries across the board in an effort to save money. Union protests have been going on all over San Juan’s financial districts, and the unemployment rate on the Island of Enchantment will soar to potentially 17%.

(more…)

In order to live a more cultured and sophisticated lifestyle, one must do a bit of traveling, and while traveling, partake in the local delights of wherever one finds themselves. My travels this year have led me to Belize, Grand Cayman, and most importantly, Puerto Rico. In the past year, I have spent a grand total of nearly 6 weeks on the Island of Enchantment, where the national drink is rum. In fact, Puerto Rico is known as the Rum Capital of the World, and more than 80% of the rum consumed in the United States, comes from the island. The most popular of the many brands in Puerto Rico is Bacardi, which is distilled in Cataño,  right across San Juan Bay from the apartment I stay at. Every time a cruise ship made port (which is fairly often, as Puerto Rico is also the cruise ship capital of the world), dozens, if not hundreds, of people lined up to take tours of the Bacardi factory.

For obvious reasons (it is delicious), I am a big fan of rum. My time in Puerto Rico was well spent, as I tried several of the most popular local brands, none of which seemed to actually be Bacardi. My favorite of the locals ended up being Don Q Cristal, a silver rum distilled in the city of Ponce on the south coast of the island. I brought a bottle back with me to the United States, and spent much time reflecting on why I did not bring an entire case. Don Q is not sold in my neck of the woods, so I’ve only used it sparingly, on special occasions. Tonight is one of those occasions, as I finally sit down to do a real taste test, to see if Bacardi can be dethroned as the King of Puerto Rican Rum.

(more…)