An award-winning London-based vodka producer, One True Maverick (OTM), is looking to expand operations to Guyana and has expressed interest in the Uitvlugt Sugar Estate for the potential establishment of an ethanol plant.
OTM co-founder, James Luwagga was among a group of United Kingdom (UK) business representatives who visited Guyana last week as part of the “British Business Mission” to network with both local Private Sector and Government officials as they scope out opportunities for potential investments here.
The delegation was hosted by London-based The Caribbean Council, the Georgetown Chamber of Commerce and Industry (GCCI) and the British High Commission’s Department for International Trade.
At a press conference last Wednesday, Luwagga told reporters that he is looking to introduce his OTM Vodka to the Guyanese market and tap into opportunities linked to the alcohol beverage sector.
“We are assessing the opportunities in the micro brewing and micro distillery sector,” he had stated.
Luwagga’s company’s One True Maverick Vodka was awarded a “Master” medal in the 2021 Global Spirits Master awards.
During the press conference, the London-based businessman had revealed that he would be visiting the Albion Estate to get an initial assessment of the factory operations.
“It’s just an opportunity to get on the ground and interact with the key people and then once we’ve been given kind of the confidence that the opportunity to invest and to develop and to grow the sector with the Private Sector and the Government as a partnership, then we’re more than confident that we will be returning with very kind of concrete agreements,” Luwagga had explained.
That visit was facilitated last Thursday by the Guyana Sugar Corporation (GuySuCo) through the Guyana Office for Investment (GO-Invest) and the British High Commission.
Guyana Times was told that the intention behind visiting the sugar estate was to ascertain the possibility of setting up an ethanol plant in Guyana.
“The idea is Uitvlugt. He just wanted to see how a sugar factory works and whether there is an opportunity [for investment] … Sugar makes ethanol and ethanol makes rum. So, he was looking to see if he can build an ethanol plant at Uitvlugt with regards to making his vodka,” a senior GuySuCo official told this newspaper.
However, while the Uitvlugt Estate is the potential site for this project, the visit to the Albion Estate in Berbice, Region Six, was planned instead since that factory started grinding last week.
“It made more sense showing him Albion because you can’t show him a factory that is not working,” the official explained. Uitvlugt is slated to start grinding later this month.
According to the Sugar Corporation official, while this potential investor has expressed serious interest in expanding to Guyana, he still has to do undertake due diligence before making any commitments.
“At the end of the day, a deal is not a deal unless it is bankable. He has to go back to his investors and see if they have the appetite and the money to build an ethanol plant. It will take about US$6 million to complete the whole project so they have to determine whether they are prepared to do that,” this publication was told.
The GuySuCo official went on to outline that Luwagga has indicated that his company has a “potential big market” in China and they are looking to set up shop here to fulfil the demand of that market.
As it is, the Uitvlugt Estate produces approximately 12,000 metric tonnes of molasses which in turn makes about 9000 kilo tonnes of ethanol. OTM is looking to acquire this entire production from the West Demerara estate.
“They will buy all because they will need more than 9000… Basically, to make alcohol in the UK is very expensive. So, he’s just basically looking to expand but not in the UK, expand in Guyana. They will produce the [vodka] here and then ship to [the potential market in] China,” the official stated.
At last week’s press conference, Luwagga said that the Guyanese business environment is very welcoming and receptive to the ideas for investments.
“One thing the President [Dr Irfaan Ali] mentioned [Tuesday at a reception hosted by the British High Commission] was around the removal of this level bureaucracy that stops a lot of investments trying to come into Guyana and capitalise on the vast opportunities that are available. That was actually reflected when the Department of Trade facilitated a lot of introductions [with potential investment partners] for us,” the UK businessman noted.
Meanwhile, the GuySuCo representative said this potential investment is sparking a lot excitement amongst the top executives of the corporation since the entity has been looking to diversify its operations as part of plans to make the sugar sector financially viable.
“If there is value-added and more money, then it would be good for everyone. Rum is a very expensive thing. That is essence of what sugar will be all about – moving towards value-added and rum is a main product of that. So, the idea is to get private investors at Uitvlugt, both in the field as well as in the ethanol aspect. So GuySuCo will only be there in the middle with the factory,” the official noted.
The Uitvlugt Estate once housed the Guyana Distillers Limited (GDL) which produced vodka. GDL was merged with DDL and the stills were sent to DDL, but the expertise is still available.
The People’s Progressive Party/Civic (PPP/C) Government has been looking to make strategic investments at Albion, Blairmont, and Uitvlugt Estates. In fact, this year, particular focus will be placed on upgrading and mechanising aspects of operations at those estates while expanding packaging capabilities to produce more value-added products for domestic and international markets.
Finance Minister Dr Ashni Singh, during the Budget 2022 presentation, disclosed that “…$6 billion [has been allocated] to support GuySuCo’s ongoing investment in field and factory operations to turn around the industry, while we continue to consider the possibility of engaging private investor interest also in some of the estates.”
Further, President Ali had subsequently hinted at Government’s efforts to encourage private investments in the sugar industry.
“It will create more jobs. Not only more jobs, but more jobs at a technical level if we are to increase our production. It will expand our production,” President Ali said during an analysis of the $552.9 billion Budget 2022 which was passed in the National Assembly on Thursday last.
