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August 29, 2008
GOVERNOR: SALE OF CRUZAN RUM TO FORTUNE BRANDS REPRESENTS A MORE STABLE ENVIRONMENT FOR ST. CROIX RUM DISTILLERY Governor John P. deJongh, Jr. Thursday welcomed Fortune Brands to the U.S. Virgin Islands with the purchase of Cruzan VIRIL from Pernod-Ricard. DeJongh had been in touch with senior management of both companies during their negotiations, and conveyed the support of the Administration to ensure Cruzan VIRIL’s future. Speaking from Denver, where he attended this week’s Democratic National Convention, DeJongh said he “knew when Pernod acquired V&S, their objective was Absolut Vodka. They assumed a lot of debt to win Absolut, and we fully anticipated that they might choose to sell Cruzan as part of their effort to pay down that debt.” DeJongh noted that Pernod has a strong presence in the flavored-rum market with Malibu and through the joint-venture agreement with the Government of Cuba, a signature premium rum brand in the international market with Havana Club. “Our concern from the beginning was that because of competition from a strong internal brand, Pernod might not have been the preferred home for Cruzan Rum,” deJongh added. The governor said he believes the sale of Cruzan Rum to Fortune Brands will lead to a more stable environment for Cruzan VIRIL, a company that is an important part of our community, and a cornerstone of the Virgin Islands rum industry. Fortune Brands have distributed Cruzan Rum products for many years. “They know the brand, they like the brand, and they want the brand,” said deJongh. “Cruzan Rum will be Fortune’s only rum product, giving the brand the opportunity to enjoy access to the resources needed to achieve its growth.” DeJongh said he intends on meeting with the new owners of Cruzan Rum just as he did with the principals of Pernod-Ricard. “I look forward to working with them in the years ahead to grow the Cruzan Rum brand, to support Cruzan’s bulk rum business and to continue to explore new and cooperative ways for the government to assist in the development of the rum industry in the Territory. The stability and growth of the Virgin Islands’ rum industry is a tremendous benefit to our economic success, and these recent corporate moves, I believe, will achieve the objective of providing us the resources to invest in our children’s education, our public safety, our infrastructure and the overall economic development of our Territory.” Fortune Brands regards the affirmative efforts of the Virgin Islands Government to support the rum industry as an important element in their future plans for Cruzan Rum. |
