30th November 2004


Malcolm Gosling, representing the seventh generation of the Gosling’s Rum family business, is coming to America. After decades of watching U.S. visitors to Bermuda board homebound planes carrying bottles of Gosling’s Black Seal Rum, the Gosling family is investing in a major new initiative to make it easier for Americans to enjoy its world renown spirits, including the trademarked Dark ‘n Stormy classic cocktail. To maximize the impact, Gosling’s is partnering with Castle Brands Inc., a rapidly growing New York based importer of premium spirits. Gosling’s Export (Bermuda) Ltd. (“GXB”), a subsidiary of Bermuda based Gosling’s Brothers Ltd., has entered into an innovative new importer agreement with Castle Brands (USA) Corp., a subsidiary of Castle Brands Inc. GXB and Castle Brands are also forming a marketing joint venture, which will be led by Malcolm Gosling, serving as President and CEO. “We have a great business opportunity in the United States,” observes Malcolm Gosling. “Our rums are currently available in almost all 50 states, but our market awareness is not as high as it should be. I believe that the combination of our expanded marketing initiatives and Castle Brands’ strong sales team, with their focus on premium spirits, will substantially accelerate the growth of our brands.” Gosling’s Rum will be celebrating its 200th anniversary in 2006. The family’s flagship brand, Gosling’s Black Seal Rum, dates from 1860. It is a well-aged, extremely dark rum blended in Bermuda according to a secret family recipe. It is the primary ingredient for the authentic version of a Dark ‘n StormyTM (mixed with ginger beer), and is also a prime ingredient for a variety of other rum-based drinks, including Mojitos and Rum Punch. In 2004, Gosling’s introduced its Gold Rum, a premium amber rum that is enjoying significant market success. The Company also distributes the ultra-premium family vintage “Old Rum,” produced in limited quantities. Mark Andrews, Chairman and CEO of Castle Brands, reflected on the unique new relationship “in competition with a number of larger companies, we took the time to structure an innovative form of agency distribution agreement, in which we serve as the exclusive U.S. importer but let Gosling’s lead the marketing strategy. Who better to lead the marketing effort for Gosling’s Rum than a member of the Gosling family? Malcolm Golsing is an extremely talented individual, and we are glad that he has moved to Boston to head this initiative. We also look forward to a long term relationship with the Gosling family.” The new marketing arrangement contemplates a multi-million dollar advertising and marketing program, with significant sales support from the national sales team at Castle Brands. It will feature both print ads and outdoor media, in addition to point of sale promotions. “In the liquor business, you have to fight an air war and a ground war,” Mr. Gosling continued. “We need to reach potential drinkers in the media, but we also need to be visible at the point of purchase, which is where people really make their brand decisions. Appreciation and consumption of premium rum is on the rise, and we want discerning rum drinkers to understand the unique heritage and superb quality of our brands.” Veteran advertising consultant Glenn Kelley has created the high-impact marketing program. He added “our campaign will focus on the historic scarcity of the brand. Even though the brand now sells over 50,000 cases in the United States, and is growing rapidly, we decided to highlight the fact that ‘seven stubborn generations’ of the Golsing’s family limited the exports – and that loyal Gosling’s rum consumers often even went all the way to Bermuda to find it.” Gosling’s Brothers Ltd. is the oldest continuing commercial business in Bermuda. When Ambrose Gosling, the company founder, sent his son James Gosling to Virginia in 1806 with the original shipment of spirits products, the chartered clipper Mercury was becalmed for over 90 days, and James was diverted to Bermuda. This led to the creation of a very successful and still growing Bermuda business. With Malcolm Gosling moving to Boston, the seventh generation of the Gosling family has finally elected to complete the voyage to the United States. Castle Brands Inc., headquartered in New York City and with a major office in Dublin Ireland, is one of the most rapidly growing premium spirits companies in the United States, with sales projected in 2005 of over 300,000 cases. Castle Brands is the owner and producer of Boru Vodka, an ultra-pure and premium Irish vodka, which is now sold in over 30 countries. Castle Brands also produces and imports Clontarf Irish Whiskey, Knappogue Single Malt Irish Whiskey, Brady’s Irish Cream and Celtic Crossing Irish Liqueur. It is also the exclusive U.S. importer for Pallini Limoncello, a premium Italian liqueur.