Following Britain's defeat in the American Revolutionary War, Southern loyalists brought their slaves to the Bahamas. They grew cotton under the Crown's protection, maintaining the "cotton connection" through the Civil War, when Bahamians got rich running Confederate cotton to English mills and sending military equipment to Southern rebels.
A century later, Bahamians grew wealthy once again, this time smuggling a precious liquid from Britain -- liquor. After the Civil War, temperance took hold in America, and soon made its way across the water. Although many Bahamians "took the pledge" not to drink, their government did not follow the U.S. path to Prohibition. With alcohol legal and certain islands less than 60 mi from American shores, the Bahamas once again became an important trans-shipping point for contraband.
British and Scottish whiskey, rum, and gin distillers began transporting large quantities of liquor to the Bahamas. Their ships were too large to dock at Nassau harbor, so they anchored offshore, out of view of the American Consul and revenue agents. The goods were off-loaded onto smaller vessels and stored in a network of warehouses on shore, which became known as "rum row." Some supplies were taken to the Out Islands for further transport.
U.S. ships, often sailing under another flag to avoid detection, smuggled the bootleg booze to thirsty Americans, carrying the cargo through international waters, and ending up at drop-off points from Florida to New Jersey. But first, smugglers had to avoid U.S. Coast Guard ships that were prowling close to the Bahamas -- this may have been the origin of the term "rum-running."
After Prohibition was repealed, the Bahamas lapsed into economic stagnation, but the United States maintained its interest in the islands due to their proximity. During World War II, the U.S. military set up camp, establishing an air and sea station in the Bahamas. Though the station is no longer in use, the islands still house military communications facilities, plus drug enforcement agents that guard against today's generation of smugglers.
In 1962 Bacardi & Company, the world's largest rum producer, opened a distillery in Nassau. Although there's also a Bahamian brewery, which produces the ever-popular Kalik beer, rum is the alcoholic beverage of choice in the Bahamas. The basic cocktail formula is simple: one or more types of rum plus fruit juice. You can order these drinks at every bar. This trio is the most popular:
Bahama Mama -- light rum, coconut rum, Nassau Royale (vanilla-flavored rum), orange and pineapple juices.
Rum Punch -- dark rum, orange and pineapple juices, grenadine, a dash of bitters.
Goombay Smash -- light rum, coconut rum, pineapple juice, a dash of Galiano.