Hi Andrew,

4 years on and I'm still struggling with this issue :-)

This is my upstart (?) script inside /etc/init.d:

#!/bin/sh

### BEGIN INIT INFO
# Provides:          unicorn
# Required-Start:    $all
# Required-Stop:     $all
# Default-Start:     2 3 4 5
# Default-Stop:      0 1 6
# Short-Description: starts the unicorn app server
# Description:       starts unicorn using start-stop-daemon
### END INIT INFO

set -e

USAGE="Usage: $0 <start|stop|restart|upgrade|rotate|force-stop>"

# app settings
USER="rails"
APP_NAME="MyApp"
APP_ROOT="/home/$USER/$APP_NAME"
ENV="production"

# environment settings
PATH="/home/$USER/.rbenv/shims:/home/$USER/.rbenv/bin:$PATH"
CMD="cd $APP_ROOT; ~/.rbenv/bin/rbenv exec bundle exec unicorn -D -c $APP_ROOT/config/unicorn.rb -E production"
PID="$APP_ROOT/shared/pids/unicorn.pid"
OLD_PID="$PID.oldbin"

# make sure the app exists
cd $APP_ROOT || exit 1

sig () {
  test -s "$PID" && kill -$1 `cat $PID`
}

oldsig () {
  test -s $OLD_PID && kill -$1 `cat $OLD_PID`
}

case $1 in
  start)
    sig 0 && echo >&2 "Already running" && exit 0
    echo "Starting $APP_NAME"
    su - $USER -c "$CMD"
    ;;
  stop)
    echo "Stopping $APP_NAME"
    sig QUIT && exit 0
    echo >&2 "Not running"
    ;;
  force-stop)
    echo "Force stopping $APP_NAME"
    sig TERM && exit 0
    echo >&2 "Not running"
    ;;
  restart|reload|upgrade)
    sig USR2 && echo "reloaded $APP_NAME" && exit 0
    echo >&2 "Couldn't reload, starting '$CMD' instead"
    $CMD
    ;;
  rotate)
    sig USR1 && echo rotated logs OK && exit 0
    echo >&2 "Couldn't rotate logs" && exit 1
    ;;
  *)
    echo >&2 $USAGE
    exit 1
    ;;
esac

As far as I can tell the Rails environment gets set to production but I might be wrong.

Would be glad if you could have another look.

Thanks!