Australians have embraced craft wine, beer, whisky, vodka and gin. Could craft rum be the next big thing?

David Ward and his business partners and investors at Sydney Rum Distillery believe so. They’re so confident that they expect to spend $60 million over the next three years to build a distillery, launch brands and develop the business.

“The bulk of the rum around the world at the premium end – anything that costs over $50 a bottle – comes out of the Caribbean and a lot of their infrastructure has been under-invested in over the last half century, and they’ve also got some issues with their sugar cane,” Ward said.

“It’s our view that Australian providence and the quality of our sugar cane and adding value to that [is an opportunity]. The Australian and global [rum] scene is dominated by big players, not dissimilar to the wine and other alcoholic drinks in the past, so we feel rum is the next wave of premiumisation as a spirit.”

The company is looking at a potential site near Gosford to build its rum distillery and hopes to have it under way by 2024.

Meanwhile, the company, which was founded in 2015, is blending third-party rums and buying new make, the alcohol that comes straight off the still, and then maturing it.

Ward said the alcohol industry was a good investment even when the economy was weak.

“In good times, there are always people wanting to enjoy the socialisation that comes with music and parties and good company and [that’s also true] in downturns,” Ward said. “We saw that in the GFC and also in the pandemic. It holds its own as a commodity.”

Greg Holland, the chief executive of Spirits & Cocktails Australia, said there were some very good rums being produced in Australia – especially in Queensland.