By: Staff Writer
April 30, 2021
The head of the regional rum and distillers association said that a “healthy return to growth in 2021” depends on the successful roll out of COVID-19 vaccinations worldwide, warning that rum consumption relies heavily on tourism and festive visitors.
Komal Samaroo, executive chairman of the West Indies Rum and Spirits Producers Association (WIRSPA) and Demerara Distillers Limited (DDL) in Guyana, told Caribbean Magazine Plus that: “The key to a healthy return to growth in 2021 rests with the success of the worldwide vaccination programmes.
“With second and third surges in many international markets, a return to the ‘new normal’ will be delayed, but in those countries with active vaccination programs, which we expect to be accompanied by a relaxation in lockdown measures, we expect sales to pick up. Having said that, consumption in our domestic Caribbean markets is heavily influenced by visitors and by festive events – the slow recovery of tourism and the continuing restraint on large festivals, like carnivals, will continue to limit occasions where persons meet and enjoy our products.”
Mr Samaroo also said: The pandemic required that we pivot very quickly to providing alcohol supplies and products like hand sanitizer to satisfy local demand, in a situation where international shipping had ground to a halt. Now that we are past that crisis stage we have focused on streamlining processes and maintaining sales (and prices!) and most importantly – employment levels across our members. As with many other sectors, local and international lockdowns have impacted dramatically on sales and consumption – some markets more than other, and this continues into 2021.”
He added: “The first half of 2020 was a nightmare for producers. Packaging materials and inputs such as molasses were delayed as the pandemic affected shipping. Not just that, but all the packaging required to produce new products like hand sanitizer was also difficult to obtain. Our production teams worked around the clock to keep things going however and we’re proud not only to have been able to respond to this new type of national emergency, but also all of our producers donated generously to front line agencies and ministries of health, care home etc., of vital supplies for sanitation.
Mr Samaroo further lamented the hike in machine parts to service distillation machines and other manufacturing machine parts and said, “The pandemic has seen an across-the-board increase in shipping costs, and in some materials (like copper) which we use in our distillation equipment. But even more challenging has been the difficulties in getting specialist technicians to travel to repair or calibrate machinery, due to the disruption in international and regional air traffic.
Despite this, the outlook for the region remains strong Mr Samaroo said and added, “The demand for high quality rum in Europe and North America is growing fast, and this is exactly the target market for Caribbean producers.
“We have a long tradition and deep heritage, being the area where rum was first appreciated as a spirit, and each of our brands have their own unique stories and production styles and flavours. We’re already seeing recovery in these markets as their economies resume growth on the back of successful vaccination programs and I think we’re well poised to take advantage of this growth!”