In good spirits: SRD's plans to transform iconic Oak factory site
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.
SRD CEO and master distiller Steve Magarry presented the company’s vision to establish a globally scaled premium rum and brandy distillery, with a goal to create jobs, boost tourism, and take its products to international markets.
“We very much have a collaborative focus involving the community,” Magarry said. “We will develop our brand while involving the local history and heritage.”
The project demonstrates the value of the circular economy by repurposing existing infrastructure to create sustainable economic opportunities.
SRD will preserve the heritage-listed exterior on the 3.6 ha 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 also 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.
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,” 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.”
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; and
- capitalising on the growing global demand for premium spirits with Australian provenance.
Eventually, SRD will establish a visitor centre and cellar-door experience to enhance local agritourism.
The announcement of plans for the historic site generated remarkable interest from the community. Muswellbrook Mayor Jeff Drayton 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,” Drayton said.
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