DDL considers importing molasses/cane juice

Demerara Distillers Limited (DDL), a giant in rum production in Guyana, is considering importing molasses or cane juice to meet its production requirements given the decline in local molasses production due to the closure of sugar factories.

“We’re looking at a wide range of options at the present time; our goal, our objective is to have adequate and ready supply of molasses, or sugar cane juice to meet our rum requirement,” said Komal Samaroo, Chairman of DDL. Mr Samaroo was speaking Wednesday during an interview at the Pegasus Hotel in Georgetown.

Sugar factories at Skeldon and Rose Hall in Berbice and the one at Enmore, East Coast Demerara were closed just over a month ago; the one at wales, West Bank Demerara was closed a year ago.

“I think the rum industry in Guyana is at a very critical juncture because we depend on molasses from the sugar industry for production and this year we’re seeing a sharp decline in production of molasses, which could affect our production,” Samaroo said.

The company had previously expressed interest in investing in the Enmore estate to keep operations going there and guarantee its supply of molasses. Samaroo said while the interest in Enmore remains, the company is considering other options that could be more feasible.

“Because the market (for rum) is so competitive and it is price driven…we are looking at the option of investing in Enmore, to be part of the supply chain, and at the same time we are exploring the possibility of outsourcing from outside of Guyana so that we can do the comparative economics that can be in the long-term interest of the company and the country,” Samaroo stated.

He suggested the company was not in panic mode yet, saying that it has taken steps to ensure it has continuity of production and can meet its market commitments.

A significant amount of DDL’s rums are shipped out in bulk, but increasingly the company has invested in high-value brands which are distributed in about 60 countries; 2015 was the first time in the company’s history that the export value of branded rum exceeded the value of bulk rum.

DDL’s distillery and associated operations employ 1, 200 persons. Samaroo said these are “high-quality jobs, people who are well trained, people who have careers and have served our company for many years.”

“So we have a duty to protect those jobs,” Samaroo stated.