One U.S. territory's loss is another's gain as spirits maker Diageo plans to switch production of its popular Captain Morgan rum from Puerto Rico to the U.S. Virgin Islands in 2012, thanks in part to a $250 million bond issue that will help finance a new distillery plant.

USVI governor John deJongh last week signed into law legislation that will give Diageo tax incentives and financing for a new facility that will produce up to 20 million gallons of rum per year in exchange for Diageo's guarantee that it will produce all its U.S. distribution of Captain Morgan from the new St. Croix distillery for 30 years.

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