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Sydney Rum Distillery adds value to historic Hunter Valley factory

Global premium spirits producer Sydney Rum Distillery (SRD) is raising a glass to the Upper Hunter Valley after announcing plans to move operations into Muswellbrook’s iconic Oak factory.

SRD aims to capitalise on the growing international recognition of quality Australian distilled spirits. It will leverage this reputation along with Australia’s sugarcane and wine industry to create a range of premium spirits primarily targeting global bulk and bottle markets.

This exciting initiative is a boost to the Upper Hunter – a region focused on diversifying its industries and strengthening its economic future. The aim is for the distillery in Muswellbrook to be operational in mid-2025. This represents a three-year time saving over building a similar greenfield site.

SRD has assembled a team of experienced talent with a vision of creating and marketing premium Australian rum and brandy at scale in key global markets. The team is excited to assist the Muswellbrook and Upper Hunter communities build on their existing strong manufacturing and agri-tourism capabilities.

The Muswellbrook distillery is an important part of seeing SRD’s plans come to fruition while also providing substantial economic benefit to regional NSW. The distillery will create up to 24 full-time jobs. Recent Deloitte Access Economics data shows for every dollar of investment into the distilled spirits industry in regional Australia, the local economic benefit is about $2.30.

“We recognise the heritage and history of the Hunter Valley Dairy Co-operative and local significance of the Oak brand. The iconic building has been a part of the town’s landscape since 1945,” said SRD CEO and master distiller Steve Magarry.

Muswellbrook Shire mayor, Jeff Drayton, concurs and says the Oak factory holds fond memories for Muswellbrook.

“As a council, we’re thrilled to partner with Sydney Rum Distillery to breathe life back into the site,” said Drayton.

“It’s a rich part of our community where locals worked and connected for generations. To get that back, along with the jobs and tourism potential of the partnership, is a win for Muswellbrook Shire.”

To offer a consumer-focused drinking experience, SRD’s product portfolio will use Australian native botanicals and employ a customised wood policy for ongoing aging.

“People are making more considered choices when it comes to alcohol consumption,” said Magarry.

“They are investing in higher quality spirits. A new generation of consumers are gravitating to brands that place authenticity, transparency, and sustainability at the heart of their operations.”

SRD’s vision is to operate a globally scaled distillery in Australia and take premium Australian rum and brandy to the world with a portfolio of high-class brands. It already distributes its Cargo Cult Spiced Rum across 10 markets and plans further expansion this year.

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