As inflation continues to spread globally, Latin America grapples with rising costs and supply chain challenges. In certain countries like Cuba, the situation has become critical with 12% of the population failing to meet their daily caloric requirements.1 Food shortages and power outages have become increasingly frequent in a country already facing a series of political and economic challenges. Multiple industries have been affected. Specifically, fuel and vehicle shortages have negatively impacted Cuba’s sugar industry as both are essential for sugar cane production. Once an exporter of sugar, Cuba is now required to import sugar to meet its own domestic demand. Azcuba, the state-owned sugar company, has continued production while others have stalled2. Cuba relies on profits derived from rum exports; the dismal rum harvest results directly affect both the rum industry as well as an already struggling Cuban economy. The situation has become so extreme, some are declaring it a national disaster.3 While this may or may not be the case yet, it certainly is very bad for Cuba’s rum industry which produces some of the finest rums in the world.
In a concluding implementation as POTUS, President Biden enacted a law preventing US courts from recognizing brands whose trademarks were confiscated by the Cuban government. Named the “No Stolen Trademarks Honored in America Act of 2023” it was signed into law by Biden on December 1, 2024. The new law liberates the use of private brand names previously seized by Cuba’s government. The iconic Havana Club brand name has been in limbo following Bacardi’s purchase from the Arechabala family, the brand’s original private owners. Bacardi, a Cuban family who also left following the revolution, relocated its business to Puerto Rico. After buying the original recipe from the Arechabalas, they started producing Havana Club rum in Puerto Rico in 1994. The dispute stemmed from a separate agreement between the Cuban government and Pernod Ricard, a French-owned company. In 1993, Pernod Ricard and Cuba’s government embarked on a 50/50 joint venture and named it “Corporación Cuba Ron.” This new company began producing the Havana Club label in direct competition with Bacardi’s version of the brand3. Somewhat reminiscent of Mexico’s Pastry War, the dispute involves a consumer product, foreign governments and France. The new law is intended to squash the debate and put an end to the ongoing litigation.
- https://en.cibercuba.com/noticias/2025-03-12-u1-e199370-s27061-nid298750-manuel-marreo-crisis-cuba-necesitamos-alimentos-todo
- https://au.news.yahoo.com/finance/news/cuba-laments-collapse-iconic-sugar-003458421.html
- https://english.elpais.com/culture/2023-02-28/in-cuba-with-no-sugar-spotty-internet-and-frustrated-kardashians.html
- https://www.intellinews.com/us-cuba-rum-war-spills-over-as-biden-law-stirs-havana-club-row-357963/