NASSAU, BAHAMAS: The introduction of a new 12.5 per cent tariff in the United States presents challenges for Bahamian exporters, but it does not change John Watling’s Distillery’s long-term strategy of introducing premium Bahamian rum to established international markets, according to co-founder and managing partner Pepin Argamasilla.
Argamasilla said the company is closely monitoring the impact of the tariff but remains focused on expanding its global footprint while continuing to strengthen its position in The Bahamas, its largest and most important market.
“Like all exporters, we are paying close attention to the new 12.5% tariff. Any increase in the landed cost of imported goods into the United States presents challenges. Fortunately, The Bahamas remains our largest and most important market, and our export business is still growing from a relatively small base. While the tariff may affect pricing in the US market, it does not fundamentally change our long-term strategy of introducing premium Bahamian rum to established international markets.”
Argamasilla said the tariff highlights the importance of market diversification and the need for businesses to avoid becoming overly dependent on a single export destination.
“If anything, it reinforces the importance of diversification. The world is a big place, and we have never intended to rely on a single export market. As our export business grows, expanding into additional international markets is simply the natural progression. No business should become overly dependent on one export market, regardless of where that market is.”
He said John Watling’s Distillery has been encouraged by the growing international recognition of its rums, noting that global awards have helped demonstrate that Bahamian-made spirits can compete with some of the best in the world.
“We are encouraged by the growing international recognition of our rums. This year, JOHN WATLING’S Paradise Rum received a Gold Medal and an outstanding 94-point rating from the Beverage Testing Institute in Chicago, Two Stars from the International Taste Institute in Brussels, and a 93-point Silver Medal from the International Wine & Spirit Competition in London. In addition, JOHN WATLING’S Amber Rum earned a 91-point Silver Medal from the IWSC. These international awards, together with JOHN WATLING’S being featured by Forbes among the world’s outstanding premium rums, reinforce that Bahamian-made spirits can compete with the finest in the world and continue to open doors in new export markets.”
Argamasilla also pointed to the role tourism plays in introducing international visitors to the John Watling’s brand, saying those experiences often turn visitors into ambassadors for the company when they return home.
“At the same time, there is another important opportunity. Every year, hundreds of thousands of visitors experience John Watling’s Distillery and our rums while vacationing in The Bahamas. Those visitors become ambassadors for our brand when they return home. Every bottle of JOHN WATLING’S Rum taken back to the United States introduces new consumers to an authentic, internationally award-winning Bahamian product. If they discover and enjoy the brand while visiting The Bahamas, they are far more likely to seek it out once they return home, regardless of the tariff.”
He said the company’s focus on building a premium product and consumer experience remains key to overcoming challenges such as increased tariffs.
“Ultimately, the best way to offset the impact of higher tariffs is through premiumisation. By continually adding value to both the product and the consumer experience, price becomes less of a deciding factor. Consumers are willing to pay for quality, authenticity, and a genuine story. Our focus has always been on building a premium Bahamian brand that earns its place on the shelf through excellence, not by competing solely on price.”
Argamasilla added that while tariffs may affect pricing, they do not reduce the value of a quality Bahamian product.
“Tariffs may influence the price of a bottle, but they do not diminish the value of an authentic, world-class Bahamian brand.”
