Credit: cubaron.com /   Cuba’s  premium Santiago de Cuba rum will be added to Diageo  Europe’s portfolio of reserve luxury spirits.

By Gary Raynaldo   DIPLOMATIC TIMES

British whisky giant Diageo has formed a joint venture with the Cuba’s state-owned  Corporación Cuba Ron S.A.  to distribute the socialist’s country’s world famous  premium Santiago de Cuba rum, the UK company announced Monday.  The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand.  Santiago de Cuba will join Diageo Europe’s portfolio of Reserve luxury spirits, building on the trend toward premiumisation to and the cocktail culture which are driving growth in key cities and resorts across Europe, according to Diageo. The brand will not be distributed in the United States of America. The agreement comes as the US is stepping up sanctions on Cuba in an attempt to cripple foreign investment in the Caribbean Island. 

“The joint venture with Corporación Cuba Ron is in keeping with our strategy to invest behind growth opportunities in premium and above brands. Consumers are looking for new and authentic experiences and working with Corporación Cuba Ron provides a great opportunity to expand our portfolio in segments of the rum category whose growth is being driven by premiumisation globally and in Europe.”

-Dayalan Nayager, Managing Director, Diageo GB, Ireland and France. 

Santiago de Cuba is the  second largest premium Cuban rum, renowned for its high quality and provenance in the traditional rum distilling region of Cuba. 

Credit: twitterukcuba / David Cutter, President of Global Supply and Procurement of British beverage giant Diageo, and Juan Gonzalez Escalona, President of the state-run Cuba Ron, signing a joint venture to market Santiago de Cuba rum, in Havana. 

Have you tasted #Cuban rum Santiago? From today, this brand will be distributed in 🇬🇧 and Europe as part of the British company @DiageoGB @tradegovukLatAm @tradegovuk @trussliz @AntoniaRomeoUK @JoannaCrellin @cubaroncuba @MINCEX_CUBA @R_Malmierca pic.twitter.com/HQYtLGE3CL

— UKinCuba (@UKinCuba) August 12, 2019

“We are proud to announce the creation of this joint venture, which will bring the award-winning Santiago de Cuba to consumers around the world. More than just a rum, Santiago de Cuba was born in the city where the history and tradition of Cuban light rum originated. It is an expression of its people and part of our Cuban tradition and culture. We are looking forward to working with our partners to build the success of this premium rum outside Cuba.”

-Juan Gonzalez Escolana, President of Corporación Cuba Ron SA.

As US Isolates Cuba, the European Union Dramatically Increases Investments in the Caribbean Nation

Credit: translatingcuba.com /  Federica Mogherini and Cuban Foreign Minister Bruno Rodríguez on a 2018  visit of the High Representative of the EU to Havana. (EEAS)

While the U.S. under President Trump is rapidly breaking all political  and  economic ties with Cuba that his predecessor Barack Obama established, the European Union has substantially increased investments in the socialist nation over the past two years.  The EU bloc imported some €470 million worth of Cuban goods in 2017 and exported more than two billion euros’ worth. The Trump administration announced last month it is allowing former owners of commercial property expropriated by Cuba to sue companies and the Cuban government for using or “trafficking” in those confiscated holdings.  In March,  the U.S. Department of State  eliminated the highly sought after 5-year travel visa for Cuban citizens visiting America. The EU has sharply criticized the US for activating,  effective May 2,  Title III of the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD).  Lawsuits will now  be allowed in American courts against Cuban companies using property seized during the 1959 revolution.

 European Union Warns Of Legal Action Against U.S. Over Cuba Property Claims

“The decision by the United States to renege on its longstanding commitment to waive Title III of the Helms-Burton (LIBERTAD) Act is regrettable, and will have an important impact on legitimate EU and Canadian economic operators in Cuba. The EU and Canada consider the extraterritorial application of unilateral Cuba-related measures contrary to international law. “

-Joint statement by High Representative / Vice President Federica Moghernini, Minister of Foreign Affairs of Canada Chrystia Freeland, Apri. 17, 2019, Brussels. 

Diageo’s  Cuba JV Is Similar To Rival France Pernod-Ricard’s Agreement With Havana Club Rum

Credit: Pernod-Ricard.com  /   France Pernod-Ricard has been distributing Cuba’s famous Havana Club rum more than 25 years. 

Diageo’s distribution joint-venture with Cuba’s Government is similar to France’s Pernod-Ricard agreement to distribute Havana Club rum.  The JV, for Havana Club, is more than 25 years old and gives Pernod control of the rum brand outside of Cuba. The US trademark registration for “Havana Club” lapsed in 1973.   The brand was then assigned by the Cuban government to Pernod Ricard in 1993.