Premium spirits producer, Sydney Rum Distillery (SRD), is moving operations out of the city and into Muswellbrook’s old Oak milk factory, aiming to capitalise on the growing international recognition of quality Australian distilled spirits.
The global demand for Australian spirit categories has increased over the past decade, with gin, whisky, and vodka leading the charge. SRD stated there are early positive signs that rum is the next category for global premiumisation, and will be creating a range primarily targeting global bulk and bottle markets.
Source: Sydney Rum Distillery
The company’s goal is to operate a globally scaled distillery in Australia, taking premium Australian rum and brandy to the world with a portfolio of high-class brands. SRD already distributes its Cargo Cult Spiced Rum across 10 markets and plans on further expansion this year.
SRD CEO and master distiller, Steve Magarry, said the company was excited to announce the acquisition of a globally scaled distillery with a 10-million bottles per annum output, packaging, and barrel-maturation facility in the picturesque Hunter Valley.
“People are making more considered choices when it comes to alcohol consumption,” said Magarry.
“They are investing in higher quality spirits. A new generation of consumers are gravitating to brands that place authenticity, transparency, and sustainability at the heart of their operations. We are the first movers in building premium at-scale Australian rum in rapidly developing global markets,” he said.
SRD stated it has assembled a team to market premium Australian rum and brandy at scale in key global markets, leveraging the established Australian sugarcane and wine industries. To offer a consumer-focused drinking experience, the product portfolio will use Australian native botanicals and employ a customised wood policy for ongoing ageing.
The Muswellbrook distillery is key in SRD’s plans, and will provide substantial economic benefit to regional NSW, creating up to 24 full-time jobs. Recent Deloitte Access Economics data shows for every dollar of investment into the distilled spirits industry in regional Australia, the local economic benefit is about $2.30.
Magarry said the distillery is aiming to be operational by mid-2025, and planning is underway to deliver an agri-tourism “destination” hospitality venue for local, interstate, and inbound international travellers.
“We recognise the heritage and history of the Hunter Valley Dairy Co-operative and local significance of the Oak brand. The iconic building has been a part of the town’s landscape since 1945,” said Magarry.
The company also stated moving into the existing facility represents a three-year time saving over building a similar greenfield site.
