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February 27, 2025 • 11 mins

Is Muswellbrook about to usurp Bundaberg as the rum capital of Australia? 

Sydney Rum Distillery CEO Steve McGarry has big plans to turn the old milk factory into a mecca for rum aficionados.

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Speaker 1 (00:00):
iHeart Upper Hunter.

Speaker 2 (00:03):
Very few people realize that there's over one hundred and
fifty plus years of Australians sugar cane and Australian rum
history and heritage, and that we do produce a.

Speaker 1 (00:13):
World class product and there is demand for that.

Speaker 3 (00:15):
Hello, I'm Darren Katrupe. We all know the Hunter Valley
is world famous for its award winning wines. But for
those who prefer reaching up to the top shelf for
their favorite tiple, a new player is moving into town
to muscle in on the action. The Sydney Rum Distillery
has chosen Musselbrook to expand its business and in a

(00:36):
few months a large distilling and bottling production line will
be up and running in the old historic Oak Milk
Factory that'll be followed down the track with a full
on tourist experience for visitors to the distillery. Steve McGarry
is the CEO of Sydney Rum Distillery. He's also a
master distiller with global domination in his sights.

Speaker 2 (00:56):
The company again in twenty sixteen and the business strategy
and philosophy has always been to look at creating and
developing a world class run product effectively to take Australian
rum globally, and to do that, the founders of the

(01:17):
business quickly realized that economy scale and appropriate cost of
goods from a manufacturing basis, we're absolutely a priority and
therefore the focus of Syndrum Distillery is a business has
always been to facilitate a large scale run production facility.

Speaker 3 (01:40):
Despite being a relatively young company, Steve says, they've had
some great success so far.

Speaker 2 (01:45):
We're currently known as a non distillery producer. Effectively, that
means that we have a contract packer for US. We
do source and blend RUMs, those are spiced and then
the packaged and exported and our current export markets the
UK and through multiple countries in Europe just just to

(02:08):
name a few, Italy, Germany, France, Czech Republic, Denmark and
with that, the UK is the largest export market for US,
and the strategy behind the brand that we have in market,
which is called Cargo Cult Spiced Rum, is to develop
that export market potential and distribution and sales so that

(02:32):
when the facility at Musclebrook is up in operation or
we have an existing supply chain to feed our rum
into those existing markets, is.

Speaker 3 (02:42):
The RUM market growing.

Speaker 2 (02:44):
Absolutely, it's fantastic to see a growing demand for Australian
prominence on the global scale.

Speaker 1 (02:52):
But when we specifically look at rum, yes.

Speaker 2 (02:54):
Very few people, whether they may be in Europe, UK, US,
very few people realize that there's over one hundred and
fifty plus years of Australian sugar cane and Australian rum
history and heritage, and that we do produce a world
class product and there is demand for that. The global
market sees Australian rum as being something new, something exotic,

(03:18):
and something that they want to try.

Speaker 1 (03:21):
You know.

Speaker 2 (03:21):
Our philosophy essentially is what we term craft with scale.
So we're very aware in the premium premium plus end
of the rum category, it's very much a growing market,
growing demand and it's been able to utilize the Australian
providence on a global scale.

Speaker 3 (03:41):
So the question many locals are asking is why set
up shop in Musclebrook.

Speaker 2 (03:46):
Fundamentally, one of the main reasons is the facility itself.
It does have capacity to operate at a world class
level for production volumes, and again that comes back to
that economy scale and coss the goods from a manufacturing
base that when we look across the premium run market

(04:09):
to other producers on a global.

Speaker 1 (04:11):
Scale in the Caribbean, for example.

Speaker 2 (04:14):
Is that this facility Masterbrook has the capability to produce
a similar volume of liquid on an annual basis. And
second to that then is opportunity to expand a manufacturing
operation in regional New South Wales and being able to

(04:36):
look at our business and the export focus of our
business and what we can contribute to the local economy.

Speaker 3 (04:43):
With the side and its historic value to the local community.

Speaker 1 (04:49):
Is that part of.

Speaker 3 (04:51):
Your focus moving forward with the site.

Speaker 2 (04:53):
Yeah, it's a fantastic site history there and you know,
dating back to that World War two nine forty five,
late nineteen forties and forward from there with a Hunter
Valley Dairy Cooperative and so it's a fantastic building, fantastic
historical piece there and we're very fortunate that in the

(05:15):
building itself there's still a volume of blueprints and original
documentation available and we're looking to leverage that information, share
it with a community, share it in a I guess
interpretation of been up to celebrate and champion that local
history and also looking to how we can wrap that

(05:38):
into future brands that we develop and launch.

Speaker 3 (05:43):
More soon With Steve McGarry, including what the Sydney Rum
Distillery will mean for local jobs and Steve's vision to
put muscle Brook on the map as a key destination
for those that like a good job of premium rum.

Speaker 2 (05:58):
iHeart Upper Hunter, iHeart Apper Hunter.

Speaker 3 (06:04):
Welcome back. I'm Darren KATRUPI and my guest for this
episode is man of the moment, Steve McGarry, the CEO
of the Sydney Rum Distillery. Within a few months, the
old Oak Milk Factory and Musclebrook will be transformed into
our high tech distillery producing millions of bottles of rum,
and Steve is well aware of the company's responsibility to

(06:25):
play its part in boosting tourism to Musclebrook and the
wider Upper Hunter.

Speaker 2 (06:29):
The agriturism aspect is very important to us and we
are developing ideas and concepts as to a salador or
a hospitality venue and what that may look like and
how we can integrate that facility again with the local producers,
gourmet producers, agriturism industry, and because of the proximity with

(06:54):
the historical wine region in the Hunter Valley, there's a
lot of opportunities that we see to pull tourism into
the upper Hunter region to the old Oak Factory on
the back of the Newcastle Airport the new Western Sydney
Airport developments.

Speaker 3 (07:14):
Another benefit of this new development is the creation of
employment opportunities.

Speaker 2 (07:18):
Absolutely core component of developing and supporting regional New South
Wales economy. And if we look at full time employment,
we're scheduling approximately twenty four stuff over the next three
to five years. That's in the core manufacturing side of
the business. If we look to the as we've just

(07:39):
discussed the hospitality side of the business, that is additional
employment and opportunities for local supplieres.

Speaker 3 (07:47):
How do you find people that know how to make rum.

Speaker 2 (07:50):
We do have distilling experience and staff and we're shortlisting
through that process at the moment. But we also do
recognize that there is absolutely a skill set in the
local Hunter region, whether that may be trades in the
resource sector, or.

Speaker 1 (08:07):
Whether that could be as.

Speaker 2 (08:09):
You've identified in the wine sector that we're looking to
review and incorporate into the employment.

Speaker 3 (08:18):
What sort of time frame is there for you to
start putting all this together.

Speaker 2 (08:23):
Yes, the internal fit out priority is July first this year,
so in a matter of months that's our internal target,
and that's to keep all of our contractors focused and.

Speaker 1 (08:39):
Really getting the priority of the site up and operational.
As it stands. However, there are additional construction on development
that we will undertake in the future years and so
part of that is going through appropriate applications, permits, licenses
and approvals.

Speaker 3 (08:58):
With several local column and set to close within five years,
causing the loss of around twelve thousand jobs. Mustabrook Man
Jeff Traydon says the Sydney Rum Distillery is a key
example of the need for diversification.

Speaker 1 (09:12):
Yeah, it is, Darren.

Speaker 4 (09:13):
It's certainly some positive news moving forward. We've been talking
to the Steven Assume at Sydney Rum Distillery now for
some months. They'd purchased the ok Factory site, and yeah,
we've been talking to them there for quite some time.
So it's certainly good deserve to all start and come together.
There's quite a big sight up there too, so I
think they have some plans for site. We're not all

(09:34):
over those plans yet and the course hasn't mean any
applications or anything put in yet for those plans, but
it certainly has some great benefits for the community right
apart from some employment, but that the key benefit of
course is the tourism and agritourism. You know, they plan
in time to put a function center up there and
also a visitor center or a.

Speaker 1 (09:55):
Tastings site up there.

Speaker 4 (09:56):
So yeah, that stuff's fantastic news for the town, certainly
of what happens down that further south raft down round
them, the Colman area. And it even ties in neatly this
year that the airport down in Port Stevens will become
in a national airport. I think from one August was
the date. So yeah, we need to we need to

(10:18):
be looking at that and really really cashing in on
making sure that the community up here gain some benefits
from that.

Speaker 3 (10:25):
There's bound to be many locals eager for a sticky
beak at the distillery and the historic cold milk factory,
and if you're one of them, you're in luck.

Speaker 1 (10:33):
So on March twenty first, we have two events. It's
a briefing.

Speaker 2 (10:37):
Day, so we have a morning breakfast session for the
local business community, and later on the twenty first, there'll
be more of an open day opportunity for the general
public to come and visit and actually explore what is
inside the Oak Factory. Many people drive past almost a

(10:57):
daily basis and wonder that intrigue of what is insight.

Speaker 1 (11:03):
So we're opening the doors up.

Speaker 2 (11:05):
Everybody's welcome, and however, you do have to register to
be able to attend.

Speaker 3 (11:12):
So time to raise a glass of rum or, whip
up a cheeky marhido and wrap this episode. If I
heart Upper Hunter roundly supported by the new South Wales Government,
I'm Darren Katruvi Jeers. Catch you next time

Speaker 1 (11:30):
I Heart Upper Hunter
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