Toward the end of its independent existence, it also controlled various entertainment and other business ventures. Its purchase of MCA Inc., whose assets included Universal Studios and its theme parks, was financed through the sale of Seagram's 25% holding of chemical company DuPont, a position it acquired in 1981.
Seagram later imploded, with its beverage assets wholesaled off to various industry titans, notably Diageo, Infinium Spirits, and Pernod Ricard. Universal's television holdings were sold to media entrepreneur Barry Diller, and the balance of the Universal entertainment empire and what was Seagram was sold to French conglomerate Vivendi in 2000.
History
In 1857, Waterloo Distillery was founded in Waterloo, Ontario, Canada. Joseph E. Seagram became a partner with George Randall, William Roos and William Hespeler in 1869 and sole owner in 1883, and the company became known as Joseph E. Seagram & Sons. Many decades later, in 1924, Samuel Bronfman and his brothers founded Distillers Corporation Limited, in Montreal, which enjoyed substantial growth in the 1920s, in part due to Prohibition in the United States (the Distillers Corporation Limited name was derived from a United Kingdom company called Distillers Company Limited, which controlled the leading brands of whisky in the UK, and which was doing business with the Bronfmans).
In 1923, the Bronfmans purchased the Greenbrier Distillery in the United States, dismantled it, shipped it to Canada, and reassembled it in LaSalle, Quebec.[2] The Bronfmans shipped liquor from Canada to the French-controlled overseas collectivitySaint Pierre and Miquelon off the then-Dominion of Newfoundland, which was then shipped by bootleggers to rum rows in New York, New Jersey and other states.[3][4]
In 1928, a few years after the death of Joseph E. Seagram in 1919, the Distillers Corporation acquired Joseph E. Seagram & Sons from heir and President Edward F. Seagram; the merged company retained the Seagram name. The company was prepared for the end of Prohibition in 1933 with an ample stock of aged whiskeys, ready to sell to the newly-opened American market.
Although he was never convicted of criminal activity, Samuel Bronfman's dealings with bootleggers during the Prohibition-era in the United States have been researched by various historians and are documented in various peer-reviewed articles.[5][6]
In the 1930s, when Seagram established business in the United States, it paid a fine of $1.5 million to the US government to settle delinquent excise taxes on liquor illegally exported to the US during Prohibition. The US government had originally asked for $60 million.[7]
Original Seagram Distillery buildings in Waterloo, now converted to residential condominiums, Seagram Lofts, at 5 Father David Bauer Drive
From the 1950s, most of Distillers-Seagram was owned by the four children of Samuel Bronfman, through their holding company Cemp Investments. The three most popular Seagram distilled products in the 1960s through 1990s were Seven Crown, VO, and Crown Royal.
In 1963, Seagram purchased the Texas Pacific Coal and Oil Company for $61 million in cash and a $216 million production payment sale to Glanville Minerals Corporation of New York. Texas Pacific Coal and Oil Company was merged Frankfort Oil Company, another oil-producing company owned by Seagram. The new firm was named Texas Pacific Oil Company.[8] In 1980, the Bronfman heirs sold the Texas Pacific Oil holdings to Sun Oil Co. for $2.3 billion.[9]
After the death of Samuel Bronfman in 1971, Edgar Bronfman Sr. was named chairman and chief executive officer (CEO) until June 1994 when his son, Edgar Bronfman Jr., was appointed CEO.[10]
In 1978, Seagram's took over the Stonyfell winery in the eastern foothills of Adelaide from Dalgety Australia, around which time the winemaking part of the business at Stonyfell was wound up.[11]
In 1981, cash-rich and wanting to diversify, the U.S.-based subsidiary Seagram Company Ltd. attempted to engineer a takeover of Conoco Inc., a major American oil and gas producing company. Although Seagram acquired a 32.2% stake in Conoco, DuPont was brought in as a white knight by the oil company and entered the bidding war. Seagram lost the bidding war, though in exchange for its stake in Conoco it became a 24.3% owner of DuPont. By 1995, Seagram was DuPont's largest single shareholder with four seats on its board.[12]
In 1986, the company started a TV commercial campaign advertising its Golden wine cooler products. With rising star Bruce Willis as pitchman, Seagram rose from fifth place among distillers to first in just two years.[13]
In 1995, Edgar Bronfman Jr. was eager to enter the film and electronic media business. On April 6, 1995, after being approached by Bronfman, DuPont announced a deal whereby the company would buy back its shares from Seagram for $9 billion. Seagram was heavily criticized by the investment community—the 24.3% stake in DuPont accounted for 70% of Seagram's earnings. Standard & Poor's took the unusual step of stating that the sale of the DuPont interest could result in a downgrade of Seagram's more than $4.2 billion of long-term debt. Bronfman used the proceeds of the sale to acquire a controlling interest in MCA from Matsushita, whose assets included Universal Pictures and its theme parks a year after.
Later in 1998, Seagram purchased PolyGram and Deutsche Grammophon and scattered the assets within Universal Studios, notably Universal Music Group.[14][15][16]
The same year, Seagram sold its juice business Tropicana Products that it acquired in 1988 to PepsiCo for $3.1 billion.
In 2000, Edgar Bronfman Jr. sold controlling interest in Seagram's entertainment division to Vivendi, and the beverage division to Pernod Ricard and Diageo. By the time Vivendi began auctioning off Seagram's beverages business, the once-renowned operation consisted of around 250 drink brands and brand extensions in addition to its original high-profile brand names.
In 2002, The Coca-Cola Company acquired the line of Seagram's mixers (ginger ale, tonic water, club soda and seltzer water) from Pernod Ricard and Diageo, as well as signing a long-term agreement to use the Seagram name from Pernod Ricard for these lines.[17]
A license from Pernod Ricard to produce Seagram's Cooler Escapes and Seagram's malt-beverage brands has been held by North American Breweries (formerly KPS) since 2009.[18]
On April 19, 2006, Pernod Ricard announced that they would be closing the former Seagram distillery in Lawrenceburg, Indiana. The distillery was instead sold in 2007 to CL Financial, a holding company based in Trinidad and Tobago which then collapsed and required government intervention. They operated the distillery as Lawrenceburg Distillers Indiana. In December 2011, the distillery was purchased by MGP Ingredients, headquartered in Atchison, Kansas.[19] It is now known as MGP of Indiana, and continues to be the source of the components of Seagram's Seven Crown, now owned by Diageo.
In a 2013 interview with The Globe and Mail, Charles Bronfman (uncle of Edgar Jr.) stated about the decisions leading to the demise of Seagram: "It was a disaster, it is a disaster, it will be a disaster. It was a family tragedy."[20]
In 2018, Diageo sold several Seagram's brands to Sazerac including Seagram's VO, but retained the Seven Crown brand.[21]
The Seagram name survives today in various well-known drinks. Seagram's Seven Crown, used to make the American cocktail, 7 and 7, is produced by Diageo, while Seagram's V.O. is produced by Sazerac.[21] Several brands of coolers are produced under the Seagram name as of 2022: Seagram's Escapes are produced by Genesee Brewing for the American market, while Seagram Island Time is produced by Waterloo Brewing for the Canadian market.[22][23] The Coca-Cola Company currently produces Seagram's Ginger Ale soda line since 2002 & made it widely available in 2011.[24]
Seagram's House, the former company headquarters in Montreal, was donated to McGill University by Vivendi Universal in 2002, then renamed Martlet House.[25] The landmarked Seagram Building, once the company's American headquarters in New York City, was commissioned by Phyllis Lambert, daughter of Seagram CEO Samuel Bronfman, and designed by architect Ludwig Mies van der Rohe with Philip Johnson. Regarded as one of the most notable examples of the functionalist aesthetic and a prominent instance of corporate modern architecture, it set the trend for the city's skyline for decades to follow, and has been featured in several Hollywood films. On completion in 1958, its costs made it the world's most expensive skyscraper.[26] The Bronfman family sold the Seagram building to TIAA for $70.5 million in 1979.[27]
Canadian whisky is a type of whisky produced in Canada. Most Canadian whiskies are blended multi-grain liquors containing a large percentage of corn spirits, and are typically lighter and smoother than other whisky styles. When Canadian distillers began adding small amounts of highly-flavourful rye grain to their mashes, people began demanding this new rye-flavoured whisky, referring to it simply as "rye". Today, as for the past two centuries, the terms "rye whisky" and "Canadian whisky" are used interchangeably in Canada and refer to exactly the same product, which generally is made with only a small amount of rye grain.
The Glenlivet distillery is a distillery near Ballindalloch in Moray, Scotland, that produces single malt Scotch whisky. It is the oldest legal distillery in Scotland. It was founded in 1824 and has operated almost continuously since.
Diageo plc is a British multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It is a major distributor of Scotch whisky and other spirits. Distilleries owned by Diageo produce 40% of all Scotch whisky with over 24 brands, such as Johnnie Walker, J&B and Old Parr.
Edgar Miles Bronfman Jr. is an American businessman, filmmaker, theater producer, and media executive who currently serves as a managing partner at Accretive LLC, a private equity firm focused on creating and investing in technology companies. He previously served as CEO of Warner Music Group from 2004 to 2011 and as Chairman of Warner Music Group from 2011 to 2012. In May 2011, the sale of WMG was announced; Bronfman would continue as CEO in the transaction. In August 2011, he became Chairman of the company as Stephen Cooper became CEO. Bronfman previously served as CEO of Seagram and vice-chairman of Vivendi Universal. Bronfman Jr. expanded and later divested ownership of the Seagram Company, and also worked as a Broadway and film producer, and songwriter under the pseudonyms Junior Miles and Sam Roman. He also serves as the current chairman of FuboTV.
Samuel Bronfman, was a Canadian businessman, philanthropist, and member of the Canadian Bronfman family. He founded Distillers Corporation Limited and purchased the Seagram Company, that became the world’s largest liquor distilling firm.
Pernod Ricard is a French company best known for its anise-flavoured pastis apéritifs Pernod Anise and Ricard Pastis. The world's second-largest wine and spirits seller, it also produces several other types of pastis.
Malibu is a coconut flavored liqueur, made with white rum, and having an alcohol content by volume of 21.0%. Since 2005 the Malibu brand has been owned by Pernod Ricard, which calls it a "flavored rum", where this designation is allowed by local laws.
Paddy is a brand of blended Irish whiskey produced by the Sazerac Company. As of 2016, Paddy is the fourth largest-selling Irish whiskey in the World.
Irish Distillers is a subsidiary of the French drinks conglomerate Pernod Ricard. It is the largest distiller of Irish whiskey, distilling popular brands such as Jameson and Powers, in addition to premium whiskeys such as Redbreast and Midleton Very Rare. In addition to whiskey, Irish Distillers also produces a number of other spirit products such as gin and vodka.
Four Roses is a brand of Kentucky straight bourbon whiskey produced in Lawrenceburg, Kentucky. Its Spanish Mission-style distillery was built in 1910 and is listed on the National Register of Historic Places as Old Prentice Distillery. The company's warehouse for aging and bottling operations is in Cox's Creek, Kentucky. The brand and its products have evolved and transformed since the company's founding in the late 19th century, and especially since the firm's acquisition by the Kirin Brewery Company of Japan at the beginning of the 21st century.
FRÏSDanish pronunciation:[fʁiːs] is a Danish vodka brand owned by the Sazerac Company.
Corby Spirit and Wine Limited is a Canadian alcohol manufacturing and distribution company. It was founded in 1859 in Corbyville, Ontario. As of 2008, the company is 46% owned by Pernod Ricard. The company distills several Canadian specialities, as well as marketing Pernod Ricard's products in Canada. Corby is listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B. Corby is known for funding free travel on the TTC on New Years Eve in Toronto.
Paul Steven Walsh is an English businessman who is the executive chairman of the McLaren Group. He was the chief executive of Diageo, the world's largest whisky company, for twelve years between 2000 and 2013.
The Seagram's Distillery is a historic building complex in Louisville, Kentucky, on Seventh Street Road. It was originally constructed between 1933 and 1936 for the production of bourbon whiskey by Distillers Corporation Limited, who acquired Joseph E. Seagram & Sons in 1928. The Seagram company has since ceased operation, and its assets were acquired by other companies, notably The Coca-Cola Company, Diageo, and Pernod Ricard.
Sazerac Company, Inc. is a privately held American alcoholic beverage company headquartered in Metairie in the metropolitan area of New Orleans, Louisiana, but with its principal office in Louisville, Kentucky. The company is owned by billionaire William Goldring and his family. As of 2017, it operated nine distilleries, had 2,000 employees, and operated in 112 countries. It is one of the two largest spirits companies in the United States, with annual revenue of about $1 billion made from selling about 300 beverage brands.
MGP Ingredients, Inc. is a distilled spirits and food ingredients producer with headquarters in Atchison, Kansas, United States.
Royal Stag, also known as Seagram's Royal Stag, is an Indian whisky launched in 1995. It is available in many countries across the world in various pack sizes. It is Pernod Ricard's best selling brand by volume. It is a blend of grain spirits and imported Scotch malts. It is commonly available in 1 L, 750 mL, 375 mL and 180 mL bottles and also available in 90 mL and 60 mL bottles. The brand is named after a species of deer famous for its antlers, that is also featured in its logo. It is produced in several company-owned as well as bottler-owned distilleries. It was the first whisky brand launched in India that did not use any artificial flavours.
Blenders Pride launched in 1995, is a brand of Indian whisky, owned by Pernod Ricard. It is a blend of great Indian grain spirits and imported Scotch malt.
Cemp Investments was the primary holding company and investment vehicle for, and named after, the four children of Samuel Bronfman: Charles Bronfman, Edgar Bronfman, Aileen "Minda" Bronfman de Gunzburg, and Phyllis Lambert, also known as the Montreal branch of the Bronfman family. Cemp became one of the largest privately owned companies in Canada. At its peak, it controlled tens of billions in dollars of assets in major distilling, commercial real estate development, oil and gas, and entertainment companies across North America.
↑ Peter C. Newman, Bronfman Dynasty: The Rothschilds of the New World (1978; U.S. title: King of the Castle: The Making of a Dynasty) ISBN0-7710-6758-5.
↑ Michael R. Marrus (1991). Samuel Bronfman - The Life and Times of Seagram’s Mr. Sam. Brandeis University Press of New England. ISBN0-87451-571-8; pages 372-373.
↑ Edgar M. Bronfman, Good Spirits: The Making of a Businessman (1998) ISBN0399143742.
↑ Warburton, Elizabeth; Burnside (S.A.). Corporation (1981). The paddocks beneath: a history of Burnside from the beginning. Corporation of the City of Burnside. ISBN978-0-9593876-0-5.
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