Statement by Diageo to the U.S.-Cuba Trade and Economic Council:
“We are of course conscious of all relevant US legislation in relation to Cuba and this transaction has been conducted with the utmost care to ensure we are compliant with all applicable law in relation to Cuba and the US.
We are aware of our obligations and we have taken measures to ensure we do not violate applicable regulations, including, for example, the use of clear prohibitions to ensure no US employees are involved at any stage and in any way.”
New joint venture formed to distribute Santiago de Cuba rum
“12 August 2019: We are pleased to announce the creation of a joint venture, Ron Santiago S.A., between a European Diageo subsidiary and Corporación Cuba Ron S.A., a leader in the production of premium Cuban rums. The joint venture will have exclusive global distribution rights to Santiago de CubaTM, a premium Cuban heritage rum brand.
Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation trends driving growth. Over the past four years, premium and above rum retail sales value has grown 12%, whilst overall category growth was 3%. Cuban rum brands account for 9% of the retail sales value of this growing segment globally. The premium plus rum segment in Europe, the key market for development of the Santiago de CubaTM brand, is growing at 16%, ahead of luxury spirits, at 9%.
Santiago de CubaTM will join Diageo Europe’s portfolio of Reserve luxury spirits, building on the trend towards premiumisation and the cocktail culture which are driving growth in key cities and resorts across Europe. With four core variants (Carta Blanca, Anejo, 11-year old and 12-year old) Santiago de CubaTM is the second largest premium Cuban rum, renowned for its high quality and provenance in the traditional rum distilling region of Cuba.
Dayalan Nayager, Managing Director, Diageo GB, Ireland and France, commented: ‘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.’
Juan Gonzalez Escalona, President of Corporación Cuba Ron SA, said: ‘We are proud to announce the creation of this joint venture, which will bring the award-winning Santiago de CubaTM to consumers around the world. More than just a rum, Santiago de CubaTM 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.’
 The brand will not be distributed in the United States of America.
 Retail sales value, IWSR 2018
 Retail sales value, CAGR over the last four years, IWSR 2018
 IWSR 2018
 Retail sales value, IWSR 2018
About the Diageo group
The Diageo group [2018 revenues exceeded US$14 billion] is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
About Corporación Cuba Ron S.A.
Cuba Ron is a 100% Cuban-owned company, that produces Havana Club, Santiago de CubaTM, Cubay, Isla del Tesoro, and Siglo y ½. Its factories in Santiago de CubaTM, the birthplace of Cuban Light Rum, are renowed for the distillation of traditional, authentic Cuban rum, with a heritage dating back over 150 years.
Cuba Ron’s products and rum making knowledge are part of Cuba’s cultural heritage. All our products carry the Protected Denomination of Origin (DOP) CUBA, are manufactured from sugar cane and are a reflection of our culture.
For more information about Cuba Ron and its brands, visit our web site: www.cubaron.com or Facebook: @CubaRonS.A @RonSantiagoDeCubaOficial @RonCubayOfficial RonPerlaDelNorteOficial @FestivalRonCubaOficial @RonIslaDelTesoroOficial
Cuba Ron, the original producer.”
LINK To Media Release In PDF Format