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Puerto Rico, Virgin Islands in Battle Over Captain Morgan

Caribbean rum war heads to Washington

By Jane Yager,  Newser Staff

Posted Mar 17, 2010 11:54 AM CDT

(Newser) – A battle over rum has two US territories up in arms, with Puerto Rico accusing the Virgin Islands of a raid worthy of Captain Morgan himself. Diageo, the maker of Captain Morgan rum, is moving production from Puerto Rico to the US Virgin Islands, which offered the company $2.7 billion in incentives over 30 years to make the move. The money comes from a refund of rum import taxes collected in the US; outraged Puerto Rico is rallying friends in Congress against the deal.

Since Puerto Rico also gets a share of the half-billion rum-tax dollars the US gives back annually, it stands lose to billions of dollars in revenue over those 30 years. Besides, Puerto Rico says it's wrong for the Virgin Islands "to give so much money away to a foreign-owned company, instead of using it for their own vulnerable people." The Virgin Islands says the fight is none of Congress's business: "They would not get involved if a company decided to move from New York to Michigan," a Virgin Islands delegate tells NPR.

In this photograph taken by AP Images for Captain Morgan, Captain Morgan and the Morganettes participate in the Super Bowl festivities of South Beach in Miami Beach, Florida, Friday, Feb. 6, 2010.
In this photograph taken by AP Images for Captain Morgan, Captain Morgan and the Morganettes participate in the Super Bowl festivities of South Beach in Miami Beach, Florida, Friday, Feb. 6, 2010.   (Jack Dempsey/AP Images for Captain Morgan)
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COMMENTS
Showing 3 of 6 comments
DieselDawg
Mar 17, 2010 5:55 PM CDT
"$2.7 billion in incentives over 30 years to make the move" aka corporate welfare (according to the anti-capitalist sycophants on this board)

If you want a real good spiced rum, Sailor Jerry's the best pick.
Molotov
Mar 17, 2010 5:38 PM CDT
The last line says it all.
kokuaguy
Mar 17, 2010 5:31 PM CDT
It will be interesting to see what the "free enterprise" lovers in Congress do on this issue.

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