The Tribune

BY ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

A LOCAL distillery is not concerned about the potential implementation of a 12.5 percent tariff on exports to the United States, arguing that its recent string of international accolades has further strengthened the brand’s position in the premium spirits market while raising The Bahamas’ profile on the global stage.

The comments come as John Watling’s Distillery’s Paradise Rum secured three major international honours this year, including a Gold Medal and 94-point rating from the Beverage Testing Institute (BTI) in Chicago, recognition by Forbes among the world’s best rums and a Two-Star Superior Taste Award from the International Taste Institute in Brussels.

Despite concerns among Bahamian exporters over the impact of increased US trade barriers, John Watling’s Managing Partner Pepin Argamasilla said the company has to absorb the tariff costs to avoid passing higher prices on to consumers.

“It is what it is,” Mr Argamasilla said when asked whether the tariff poses a threat to the company’s exports. “I believe we assumed the tax with the export, so our prices wouldn’t go up in the US.

“It’s part of the price of doing business anywhere in the world. As long as they don’t hit me with another pandemic, we’re good. That was not fun. But all these taxes, at the end of the day, everybody’s being taxed the same.”

The distillery recently gained international recognition for its Paradise Rum, a product developed in partnership with Atlantis Paradise Island and now featured as the resort’s signature rum. Mr Argamasilla said the awards have significantly boosted brand visibility, particularly following Forbes’ inclusion of the rum among the world’s top-rated offerings.

“Something like Forbes, where we came out, that’s distributed to, I think the number was like 500 million or something like that,” he said. “So, it definitely gets the name out there, and it also puts out that here in The Bahamas, we’re creating a super-premium rum that people can enjoy.”

While acknowledging that translating recognition into sales is difficult to predict, he said the company expects the honours to strengthen demand in the United States, where Paradise Rum is currently distributed through Total Wine & More stores.

“We’re in Total Wines & More in the US,” he said. “So hopefully there’ll be some more pull created over there. But again, these awards and the accolades are really us judging ourselves to make sure that we’re putting out a certain quality of rum that we can be proud of, and that The Bahamas can be proud of.”

The company is currently distributed in 16 US states and plans to expand further across the American market before pursuing opportunities elsewhere.

“Definitely would like the next market to be the UK, just because of the synergies and history of The Bahamas with the UK,” Mr Argamasilla said. “Again, it’s just a very, very slow build. We want to build a good foundation, so this company lasts, and the brand grows.”

Although the recent awards have generated international attention, Mr Argamasilla stressed that the distillery is not pursuing rapid expansion.

“We got a lot of requests all the time to send our products here and send our products there,” he said. “But we’re in this for the long haul, so we’re building the company slowly, so it lasts. The worst thing you want to do is build it too quickly, and then it implodes on itself.”

Beyond exports, Mr Argamasilla argued that premium rum production can play a larger role in diversifying The Bahamas’ tourism offering and strengthening the country’s reputation as a luxury destination.

“The Bahamas, outside of us, really doesn’t have premium rum production,” he said. “We’re the only ones that are making premium rum here.

He added that the country’s tourism industry should increasingly align itself with premium Bahamian-made products.

“You have these people that pay a ton of money to come here to stay at some of the greatest hotels, Baha Mar, Atlantis, Island House, et cetera, and then they end up serving them cheap booze,” Mr Argamasilla said. “These people want premium alcohol. They want to experience The Bahamas.”

According to Mr Argamasilla, approximately 400,000 visitors annually visit the historic Buena Vista Estate in downtown Nassau, where the distillery operates, underscoring the growing appeal of experiential tourism offerings beyond traditional sun, sand and sea attractions.

“When people go to a hotel, the first thing they’re going to ask a bartender is, ‘What’s the local rum here?’” he said. “We want the answer from the bartender to be John Watlings.”

However, he acknowledged that Bahamian rum producers face significant cost disadvantages compared with larger Caribbean competitors due to the country’s reliance on imported raw materials and production inputs.

“The Bahamas doesn’t have its own sugar industry,” Mr Argamasilla said. “The Bahamas doesn’t have its own glass manufacturing. The Bahamas doesn’t have its own label manufacturing. The Bahamas doesn’t make its own corks.

“So again, you need to import everything, which raises your costs.”

Still, he argued that premium positioning and internationally recognised quality allow the company to justify those higher costs.

“These awards are so special to us because they prove that we’re making a quality product,” he said. “Once you have a quality product, you can command what it’s worth.”

Mr Argamasilla also called for greater government support in promoting Bahamian-made spirits internationally, suggesting that John Watling’s products should be featured at tourism promotion events.

“I would love John Watlings to be served in all the embassies and all the high commissions around the world,” he said. “I think that’s the way that you begin to advertise The Bahamas and its products because it makes no sense for The Bahamas to throw a party and use a Jamaican rum.”

The latest honours add to a growing list of international recognitions for the Nassau-based distillery, including a Gold award for its Bullion 10-Year-Old Rum at the 2024 Monde Selection World Quality Awards and a Double Gold Medal for its Single Barrel Rum at Miami’s International Rum Conference.

For Mr Argamasilla, however, the significance of the latest awards extends beyond commercial success.

“These recognitions belong not only to John Watling’s Distillery, but to The Bahamas,” he said. “They demonstrate that a premium spirit crafted in Nassau can stand alongside the finest rums in the world.”