Diageo has declined to comment on the announcement that the National Puerto Rican Day Parade is “terminating” its relationship with the drinks giant over the Captain Morgan affair.

Diageo has come under fire from many Puerto Ricans after it announced in 2008 that it was quitting the US territory to move production of its Captain Morgan rum brand to the US Virgin Islands USVI.

In July last year, Diageo was moved to clarify reports that the move to the USVI would reap around US$3bn from a tax break(/article.aspx?id=97735).

Then, the matter erupted last month, when Diageo launched an attack on Bacardi, which had also criticised the move.

Late last week, parade chairperson Madelyn Lugo. Said: “The corporate sponsorships of Captain Morgan and its British parent, Diageo, are no longer welcome.”

The National Puerto Rican Day Parade organisation noted that Diageo's Captain Morgan, Jose Cuervo and Captain Morgan brands have had a 30-year relationship with the parade.

When contacted by just-drinks today (8 March), a spokesperson for Diageo in North America chose not to comment on the latest development.

The National Puerto Rican Day Parade takes place in New York on 13 June.