Move over gin, distillers say rum is next in line for a resurgence. The number of Australian spirit makers has exploded from around 30 in 2013 to more than 700 today. Around half of those are in regional areas, and the latest addition to the list is at Muswellbrook in the NSW Hunter Valley, in the town's former milk factory. Steve McGarry is the chief executive of the Sydney Rum Distillery, which is in the process of transforming the 1940s-built former Oak milk factory into a rum distillery.The Oak factory closed in 1994 and has since hosted wine and spirits companies, but has been sitting idle since 2019. "The focus for us is to utilise the existing assets, reuse and upgrade what's already here." Once at full production, Mr McGarry said the distillery would produce 1.5 to 2 million litres of rum and brandy each year, with much of it destined for the international market. "We're looking to be the second largest rum producer in the south pacific region," he said. Eyeing the export market Australian Distillers Association CEO Paul McLeay said with global interest growing, now is the time for Australia to push its spirits further. Mr McLeay said domestically, the spirits industry is worth more than $15 billion. "We have 5,500 jobs in direct manufacturing and we support a supply chain of over 100,000," he said. "We know that within the decade we can be a $1 billion export industry if we get the policy settings right." The Upper Hunter is bracing for thousands of jobs to be lost from the coal industry in decades to come, including more than 10,000 by 2030 as mines at Mount Arthur and Mangoola close down. Muswellbrook Shire mayor Jeff Drayton said the distillery is a perfect example of how the region could welcome new industries. "This is exactly the type of industry [we want]; you need an industry that will be a drawcard for the town," he said. Old days of dairy Long before mining, the Upper Hunter was "bred on dairy farming". Jeff Wolfgang's family ran a dairy for 90 years and he remembers when the Oak factory first opened in the 1950s. Not only did it take fresh milk, but it also processed milk to powder, which Mr Wolfgang said was a huge step forward for local dairy farmers. "In a good season, everybody's cows gave a lot more milk and we didn't know what to do with it," he said. In those days, it would be separated on farm and the milk fed to the Wolfgangs' pigs. As an avid historian, Mr Wolfgang is excited for the building to reopen. "It's a new industry for the district, it's a beautiful building there … it's a landmark."