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Puerto Ricans build island's 3rd rum distillery

Construction of Puerto Rico's third rum distillery has begun in the island's mountainous region.
/ Source: The Associated Press

Construction of Puerto Rico's third rum distillery has begun in the island's mountainous region.

The Club Caribe LLC distillery in Cidra is expected to open later this year at the site of a former pharmaceutical plant. The company is affiliated to Cc1, a Puerto Rican company that distributes Coca-Cola products locally.

The distillery is expected to produce 2 million gallons of rum in its first year as part of a 20-year deal. It is expected to produce up to 10 million gallons of rum to sell in bulk and as private labels.

Gov. Luis Fortuno said Wednesday that the $40 million investment will offset the anticipated $140 million loss after the production of Captain Morgan rum moved to the neighboring U.S. Virgin Islands.