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Old 04-23-2012, 09:47 AM   #1
Edward Hamilton
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Join Date: Mar 2007
Location: Sailboat in the Caribbean and hotels.
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Default USVI to offer more rum production subsidies

Source: Associated Press
April 21, 2012
The U.S. Virgin Islands says it will award rum company Cruzan VIRIL Ltd. (Beam) additional subsidies as part of an ongoing rum war with neighboring Puerto Rico.
The government will provide 25 percent of a federal excise tax for bulk rum production through 2018 instead of the original 18 percent pledged. The decision comes after Puerto Rico offered rum companies more incentives to ensure their presence on the island.
Gov. John de Jongh said Friday the Virgin Islands has lost several rum contracts as a result.
The feud between the U.S. Caribbean territories began after liquor company Diageo PLC ended its rum production contract in Puerto Rico to build a Captain Morgan rum distillery in the Virgin Islands in exchange for a portion of the territory's excise-tax revenue.
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