Cuban, British beverages companies form joint venture to market rum

Source: Xinhua| 2019-08-13 16:32:47|Editor: Shi Yinglun
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HAVANA, Aug. 12 (Xinhua) -- Cuba's state-run company Ron S.A. and a subsidiary of British beverages giant Diageo on Monday formed a joint venture to sell the island's rum globally.

The joint venture, whose investment amount was not disclosed by the parties, will be called Ron Santiago S.A. and will have exclusive global distribution rights to Santiago De Cuba, a rum brand.

"This new company is in line with our strategy of investing behind growth opportunities in premium and higher brands. Working with the Cuba Ron Corporation provides a great opportunity to expand our business and product portfolio," said David Cutter, head of global production and sales at Diageo.

With regard to the U.S. economic embargo against Cuba and the implementation of additional sanctions in recent months, Luca Cesarano, general director of the new joint venture, said Diageo takes all measures to ensure that the applicable regulations are not violated.

"Neither the Diageo subsidiary firm that signed this agreement, nor the joint venture itself will work with any of the Diageo subsidiaries or companies that operate or are based in the United States or with citizens of that country," said Cesarano.

Cuban rum brands account for 9 percent of retail sales of premium rum worldwide, according to a press release from Diageo.