Distillery with big ambitions acquires a smaller batch for now

Sydney Rum Distillery (SRD) has acquired Cargo Cult (also known as the Small Batch Spirits Company), bringing Cargo's Dry Spiced and Banana Spiced rums into its portfolio. Sydney Rum Distillery will launch its first range of rums, Welcome Stranger, later this year.

Sydney Rum CEO Steve Magarry says that the Cargo Cult acquisition capitalises on the export opportunity for rums with Australian provenance.

He said, "This is just the beginning of a strategic expansion that will include multiple rum industry opportunities across both Asia Pacific and Australia. Our House of Australian Rum portfolio strategy is to evaluate, collaborate and partner with like-minded rum producers and brands as the industry expands."

CEO Steve Magarry commenced in his role at Sydney Rum Distillery in February 2022. Prior to this he was Group Distiller for Bickford's award-winning distilleries: Beenleigh Rum Distillery in Queensland and its 23rd St Distillery in South Australia.

Sydney Rum Distillery was founded in 2015 by Starward co-founder, Chris Middleton, and manufacturing and retail veteran, David Ward.

Mr Magarry told Drinks Trade that Sydney Rum Distillery is close to finalising the purchase of a 2ha site on the Central Coast, New South Wales, where it will build a distillery capable of producing 1.2 million LAL annually.

Ninety per cent of the rum produced at the site will be shipped off-shore to meet the demands of a growing export market and Sydney Rum's long term plan is that Cargo Cult's rums will be produced there along with its own.

Cargo Cult's rums are currently distributed in Australia via Think Spirits, part of the Amber Beverage Group. The UK is the top performing export market for Cargo Cult where its rums are distributed by Indie Brands, also part of the Amber Beverage Group. In the Czech Republic, Cargo Cult rums are distributed by Zanzibar SRO.

Cargo Cult's founder, Johnny Croft, has joined the Sydney Rum Distillery as Chief Marketing Officer and he also has a seat on the board.

"It is a fantastic fit, great to share the vision and potential of Cargo Cult, showcasing the best of South Pacific Rum to the premium global rum consumer," said Jonny Croft.

"It is time to scale and elevate our portfolio to a wider consumer audience across Europe and even into North America, whilst we support Amber Beverage here in Australia. We see huge opportunity in the rum category, with significant opportunity to drive premiumisation and invite in new consumers with authentic, unique and innovative brands".

Mr Croft has previously worked with Frucor-Suntory and Brown Forman in Australia.