Rain blamed for rum sales slide

Constant rain since last fall has slowed down rum production at J. Wray & Nephew Limited, JWN, leading to an 11 per cent dip in sales at the large rum maker in the first quarter of this year.

“We have not been able to distil as much rum as planned since October 2023, which has led to an ongoing inability to meet, in full, the market demand,” said Corporate Communications Manager Garfene Grandison.

It was due to “unprecedented” rainfall, along with equipment challenges and adherence to regulatory rules, Grandison said.

Across Jamaica, the output for the agriculture industry grew eight per cent in the March quarter, and two per cent for all of calendar year 2023. However, crops, such as sugar cane, coffee, and cocoa, suffered a decline in production due to the persistent rains, which affected reaping. The showers came in the latter part of 2023 and lingered for longer than usual.

One of the affected crops, sugar cane, is the primary raw material for Jamaican rum.

From January to March, rum sales at Wray & Nephew totalled €34.5 million ($5.8 billion), as reported by parent company Campari Group of Italy. The wider Campari Group generated €663 million in sales from January to March.

Across the group, which owns operations worldwide, Germany performed the best in the March quarter, with a 12-per cent spike in sales. Contrastingly, sales in the Australian market declined 21 per cent, followed by Jamaica, down 11 per cent.

“We are working earnestly to get back to full distillation capacity in the shortest possible time and would anticipate improvements in supply in 2024,” said Grandison.

J. Wray & Nephew, the maker of Appleton Estate and Wray & Nephew rums, supplies spirits to over 25 markets, globally. JWN trades in its own brands, but it also markets those owned by its parent, including the Campari bitters drink.

The company continues its multimillion-dollar venture to improve its impact on the environment. It plans to build a facility to treat its dunder before it re-enters the environment. Dunder is the liquefied waste created during the rum-distilling process.

“We have invested US$65 million in increasing our distillation capacity by undertaking the installation of a state-of-the-art dunder treatment plant, which should allow us to meet the market demand. This dunder treatment plant is the first of its kind in the Caribbean, which will set a new standard for environmentally responsible dunder management,” Grandison said.

steven.jackson@gleanerjm.com