MEDIA RELEASE
For immediate release: March 27, 2025
Overwhelming community support as iconic Oak factory site prepares for new life
To paraphrase Walt Disney, distill good news and they will come.
More than 200 business leaders, community representatives, and government officials gathered at the historic former Oak factory site in Muswellbrook on Friday 21 March to hear Sydney Rum Distillery (SRD) outline its plans to transform the site into a world-class spirits facility.
The exceptional turnout at the 6.30am factory briefing and tour demonstrated the region’s enthusiasm for this significant economic diversification initiative and the growing momentum for business expansion in the area. Many appreciated the potential flow-on effects for the region. The rum and brandy distillery is a bold investment on behalf of SRD and the huge turnout suggests it is a flagship project driving development and setting the stage for other entrepreneurial businesses to follow suit.
SRD CEO and master distiller Steve Magarry presented the company’s vision to establish a globally scaled premium rum and brandy distillery that will create jobs, boost tourism, and take its products to international markets.
“We very much have a collaborative focus involving the community,” Mr Magarry said. “We will develop our brand while involving the local history and heritage.”
Federal Assistant Minister for Manufacturing, Tim Ayres, attended the event and gave the project his enthusiastic support.
“I’m just delighted to be here in the old Oak factory in Muswellbrook,” Mr Ayres said. “This is an iconic facility that Sydney Rum Distillery is repurposing into a place that makes fantastic Australian rum and brandy and employs local Muswellbrook people. It’s such a positive addition to the local economy and the local community.”
Muswellbrook Shire Council and HunterNet were partners in an event that attracted senior representatives from major employers and industry organisations, federal, state, and local government, local chambers of commerce, the media, the University of Newcastle, and incubators – all united in their interest.
This included notable representatives from BHP-Mt Arthur Coal, AGL, the federal Department of Employment and Workplace Relations, Hunter Circular Economic Zone, Hunter Manufacturing Awards, Investment NSW, the NSW Department of Primary Industries, Scone Race Club, The Melt, and Muswellbrook and Scone chambers of commerce.
Their attendance endorses the development as exemplifying successful industry diversification in regional NSW and showcases the Hunter Valley’s welcoming approach to new ideas and industries. Eventually, SRD will establish a visitor centre and cellar-door experience to enhance local agri-tourism.
As an excellent example of the circular economy, the project demonstrates the value of repurposing existing infrastructure to create sustainable economic opportunities. Planning to be operational in July 2025, SRD will work towards:
- creating up to 24 full-time jobs in the region
- finalising packaged and bulk spirits brand opportunities.
- expanding international distribution beyond its current presence in 10 markets
- capitalising on the growing global demand for premium spirits with Australian provenance.
The initial announcement of SRD’s acquisition of the site and its plans generated remarkable interest across social and traditional media, with the story receiving an incredible 700-plus likes on Muswellbrook Shire Council’s Facebook page. Muswellbrook Mayor Jeff Drayton highlighted the significance of the community response and said it was “really humbling” to see so much support for diversification and so much support from the community to attract businesses into the town.
“Muswellbrook Shire Council welcomes genuine investment, and we welcome a new purpose for a building as significant to our community as the Oak factory,” Mr Drayton said. “Sydney Rum Distillery has shared a vision that includes jobs for Muswellbrook, a boost for our economy, and a tourism opportunity down the track. There’s work to be done at our end and theirs, but as the well-attended industry briefing has shown, there is plenty of goodwill all round.
“I was pleased to hear Senator Tim Ayres at the site briefing say Muswellbrook is the industrial capital of Australia and that we deserve investment and jobs. I’m confident as the process unfolds to put premium Muswellbrook spirits out to the world that we are on the same page.”
Regional Development Australia (RDA) Hunter CEO Kate O’Mara summed it up for those in attendance.
“RDA Hunter extends a warm welcome to Sydney Rum Distillery as it unveils plans to establish operations in the Hunter,” Ms O’Mara said. “SRD promises to be an exciting addition to the region with potential to create jobs, attract tourists to Muswellbrook and surrounding areas, generate local opportunities, and add to the region’s economy. We look forward to watching the development take shape.”
SRD will preserve the heritage-listed exterior on the 3.6-hectare industrial site that began as the Hunter Valley Co-operative Dairy Company in 1945. The facility’s existing infrastructure, including copper pot and column still distillation capabilities, will enable SRD to create distinctive premium spirits for global markets.
The Hunter Valley location offers strategic advantages for SRD, including access to wine barrels for unique rum and brandy finishing and an ideal climate for barrel maturation. The company’s focus on authenticity, transparency, and sustainability aligns with growing consumer preferences for premium spirits with genuine provenance.
The factory briefing and tour was a defining moment for Muswellbrook, reinforcing its potential as a hub for investment, innovation, and collaboration. SRD’s commitment to the region is not just an opportunity for growth, but a compelling reason for others to consider making the move.
Media Contact
Steve Magarry – CEO/Master Distiller
Email: steven.magarry@sydrum.com
Rum and brandy add value to historic Hunter factory
MEDIA RELEASE
Friday 21 February, 2025
Re-use, re-purpose, and recycle – that’s the spirit
Emerging 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,” says SRD CEO and master distiller Steve Magarry. “The iconic building has been a part of the town’s landscape since 1945.”
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,” Mr Drayton says. “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. There are early positive signs that rum is the next category for global premiumisation. The global demand for Australian rum and brandy is increasing as it has for other spirit categories – gin, vodka, and whisky.
“People are making more considered choices when it comes to alcohol consumption,” Mr Magarry says. “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.”
Mr Magarry says planning is underway to deliver an agri-tourism “destination” hospitality venue for local, interstate, and inbound international travellers.
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.
“We are the first movers in building premium at-scale Australian rum in rapidly developing global markets,” Mr Magarry says. “So, we’re excited to announce the achievement of a significant milestone – the acquisition of a globally scaled distillery with a 10-million bottles per annum output, packaging, and barrel-maturation facility in the picturesque Hunter Valley.”
SRD will conduct an industry briefing and tour of the distillery on Friday 21 March. Registrations are essential and can be completed via the following link: SydneyRumDistillery-OakFactoryBriefingandTour.eventbrite.com.au
Media Contact:
Steve Magarry – CEO
Email: steven.magarry@sydrum.com