Dear Editor,
There was a recent letter in the press on the local rum industry that conveyed the misconception that the industry would be disadvantaged by GuySuco if price adjustments were made to some of its raw material inputs. The author seemed to lack in depth knowledge of the beverage alcohol industry.
It should be noted that the beverage alcohol industry is one of the most profitable industries in the world and the products do not usually compete from a cost position, especially in the aged rum segment, but instead compete from the strength of its brand equity. GuySuco should be charging more competitive rates for the products being purchased by those in the beverage alcohol industry and they should be insisting on government support to keep external suppliers at a price disadvantage via import duties. Guyanese rum is an authentic and unique product with a national heritage that dates back centuries.
It should be protected as such, and we should be insisting on 100% Guyanese sourced ingredients and certify it as “Made in Guyana” with our famous Demerara Sugar.
It is also important to note that entry into the rum industry was previously considered by GuySuco but was neglected. Entry into the rum industry should be relooked at to improve the overall profitability of the Corporation.
The current high market demand for Guyanese Rum created by our award winning El Dorado Rum, which is owned by Demerara Distillers Limited, has also created many opportunities for additional Guyanese Rum offerings. I therefore recommend that the government provide the resources to make this a viable investment option for GuySuco during this administration’s current term in office.
The effective implementation of this strategic initiative will allow GuySuco to return to profitability in the medium term.