Scotch whisky producer Edrington has written off almost US$376 million of the value of its Brugal rum brand after determining that contraband from Caribbean smugglers has dramatically reduced the sales of its Dominican run in the market.
Edrington said that sales of its Brugal rum brand had been significantly affected by the recession in the Spanish and Dominican Republic markets, forcing the company devalue its investment in Brugal.
The company also revealed that sales of its rum had fallen by 12.9% in the Dominican Republic as a result of competition from other brands.
The Dominican Republic revealed earlier this year that illegally produced rum and cigarettes cost the government $45 million in taxes last year.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11706608/James-Bond-whisky-producer-shaken-by-Dominican-Republic-smugglers.html