Caribbean RUM wars continue

Puerto Rico Must Open Books on Secret Rum Subsidies, Says Letter From Black Chamber of Commerce to Gov. Fortuno
- Governor Must Address Rumored Puerto Rico Payments to Rum Companies by Releasing Contracts, Financial Information

Alleged Hidden Payments Mislead Citizens and Lawmakers; Payments from General Fund Exceed Self-Imposed Cap

WASHINGTON, Feb. 24 /PRNewswire-USNewswire/ -- In a letter to Puerto Rico Governor Luis Fortuno, National Black Chamber of Commerce President and CEO Harry Alford today called upon him to disclose his territory's direct and indirect payments and subsidies to its rum companies....

http://www.prnewswire.com/news-releases/puerto-rico-must-open-books-on-secret-rum-subsidies-says-letter-from-black-chamber-of-commerce-to-gov-fortuno-85248882.html

Rum war threatens the Carribbean

I found this article quite interesting. The US Virgin Islands have used $2.4 billion in direct subsidies and other incentives to convince Diageo, LLC (Captain Morgan) to move production from Puerto Rico to USVI. USVI also firmed up their relations with USVI-based Fortune Brands (Cruzan) convincing them to stay in USVI long-term. Needless to say, Puerto Rico is not very happy with this turn of events.

The quote that jumped out at me. "The Puerto Rican delegate said that the Virgin Island’s subsidies are so large that, in the case of Diageo, the rum producer could manufacture a gallon of rum free of cost." Diageo is the 2nd largest RUM distiller in the world and now it can manufacture its RUM for FREE! Yikes!

The article gets kinda complicated from there but it's still worth the read.