Setting out to capitalise on the flourishing reputation of Australian rum, Sydney Rum Distillery has taken over the former Oak milk factory in the Upper Hunter Valley to upscale its production capabilities.
Sydney Rum Distillery CEO and Master Distiller, Steve Magarry, says: “We are the first movers in building premium at-scale Australian rum in rapidly developing global markets. So, we’re excited to announce the achievement of a significant milestone – 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.”
Specialising in premium Australian rum and brandy, Magarry hopes to tap into the premiumisation of the two categories, particularly in the global market, alongside the distribution of Cargo Cult Spiced Rum across 10 markets.
“People are making more considered choices when it comes to alcohol consumption. 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,” he explained.
Aiming to create a range of premium spirits and primarily targeting bulk and bottle markets, Sydney Rum Distillery has already formed a team of industry talent with a vision to reach key global markets.
The new distillery site is expected to create 24 full-time jobs, with data from Deloitte Access Economics also highlighting a $2.30 benefit to the local economy for every dollar invested into the distilled spirits industry in regional Australia.
Honouring the rich history of the Oak milk factory, Magarry also hopes to deliver an “agri-tourism destination” that attracts local, interstate and international travellers to the regional town of Muswellbrook.
“We recognise the heritage and history of the Hunter Valley Dairy Co-operative and local significance of the Oak brands. The iconic building has been a part of the town’s landscape since 1945,” says Magarry.
Muswellbrook Shire Mayor, Jeff Drayton, commented: “As a council, we’re thrilled to partner with Sydney Rum Distillery to breathe life back into the site. It’s a rich part of our community where locals worked and connected for generations. To get that back, along with the jobs and tourism potential of the partnership, is a win for Muswellbrook Shire.”
In moving its operations to the site in Muswellbrook, the distillery expects to be operational by mid-2025, representing a three-year time saving over building a greenfield site of the same scale.
On Friday 21 March, members of the industry are invited to attend a briefing and tour of the new distillery site. Attendance is free, but registration is essential via Eventbrite.