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Bacardi

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Bacardi & Company Limited
The Bacardi logo
Type Private
Founded Santiago de Cuba, Cuba (February 4, 1862)
Headquarters Hamilton, Bermuda[1]
USA headquarters: Miami, Florida
Key people Eric Macias, Chairman;
Seamus McBride, President
Products Rum
Gin
Alcopop
Revenue US$ 5.5 billion (2007)
Website www.bacardilimited.com

Bacardi is a family-controlled spirits company, best known as a producer of rums, including

 Bacardi Superior and Bacardi 151.[2] The company sells in excess of 200 million bottles per

year in nearly 100 countries.[3] The company's sales in 2007 were US$5.5 billion, up from

$4.9 billion in 2006.

Bacardi is headquartered in Hamilton, Bermuda and has a 16-member board of directors led

 by the original founder's great-great grandson, Facundo L. Bacardi. The President Bernard F.

Ramirez and Co-President Charles M. Hernandez, also play a large part in production and sales.

First century

Facund Bacardí i Massó, a Catalan wine merchant, was born in Sitges, Catalonia, Spain in 1814

and emigrated to Cuba in 1830. During this period, rum was cheaply made and not considered

a refined drink, one rarely sold in upscale taverns. Don Facundo began attempting to "tame"

rum. After experimenting with several techniques he hit upon filtering the rum through charcoal,

which removed impurities. In addition to this, Facundo aged the rum in oak barrels, which had

the effect of "mellowing" the drink.

Moving from the experimental stage to a more commercial endeavor, he and his brother José

set up shop in a Santiago de Cuba distillery they bought in 1862; that distillery housed a still

made of copper and cast iron, and was in a building in whose rafters lived fruit bats.[4]

The 1880s and 90s were turbulent times for Cuba and the company. Emilio Bacardi, eldest son

of Don Facundo, was repeatedly imprisoned in a Spanish prison for (legitimate) suspicions of

running a rebel financing and support network during the Cuban War of Independence.[5]

Emilio's brothers, Facundo and José, and his brother-in-law Henri (Don Enrique) Schueg,

remained in Cuba with the difficult task of sustaining the company during a period of war.

The women in the family were refugees in Kingston, Jamaica. After the war and the US

occupation of Cuba, "The Original Cuba Libre" and the Daiquiri were both born with Bacardi

rum.[6] In 1899 US general Leonard Wood appointed Emilio Bacardi mayor of Santiago de Cuba.

The Bacardi Building in Havana, Cuba.

In 1912 Gerard Ransom traveled to Egypt where he purchased a mummy for the future Emilio

Bacardi Moreau Municipal Museum in Santiago de Cuba, a mummy still on display.[7] In Santiago,

 his brother Facundo M. Bacardi continued to manage the company along with Schueg, who began

the company's international expansion by opening new bottling plants in Barcelona and

 New York City. The New York plant was soon shut down due to Prohibition, yet during this

time Cuba became a hotspot for US tourists.

In the 1920s, Emilio opened a new distillery in Santiago. During this decade, the art deco

Bacardi building was built in Havana and the third generation of the Bacardi family was

entering the business. Facundo Bacardi invited US-Americans (still subject to Prohibition) to

"Come to Cuba and bathe in Bacardi rum."[7] A new product was introduced: Hatuey beer.

The "Cathedral Of Rum" at the Distillery in Puerto Rico near San Juan.

Bacardi's transition into an international brand was due mostly to Schueg's "business genius";

Schueg "branded Cuba as the home of rum, and Bacardi as the king of rums" and moved

production overseas, first to Puerto Rico (which enabled rum to be sold tariff-free in the U.S.

after Prohibition), and then to Mexico.[8] Those changes were accompanied by a new brand

name: Ron Bacardi ("Ron" is the Spanish word for rum). Several trademark disputes went to

court during this time regarding uses of the Bacardi name on rum produced outside of Cuba.[citation needed]

During the World War II years the company was led by Schueg's son-in-law José 'Pepin' Bosch.

Pepin founded Bacardi Imports in New York City, and was named Cuba's Minister of the Treasury in 1949.

Castro

Portuondo and other Bacardi family members initially supported the Cuban revolutionaries,

including Fidel Castro and the broader M-26-7 movement: Bosch personally donated tens of

 thousands of dollars to the movement, and acted as an intermediary between the

revolutionaries and the CIA to assuage the latter's concerns.[8] Family members, employees,

and facilities were put to use by the movement and the company supported the revolution

publicly with advertisements and parties.[8] But their support turned to opposition as the

pro-Soviet Che Guevara wing[citation needed] of the movement began to dominate and as

Castro turned against American interests.[citation needed]

The Bacardi family (and hence the company) maintained a fierce opposition to Fidel Castro's

revolution in Cuba in the 1960s. The Bacardi family and company left Cuba after it became

clear that Castro was serious about his pledges for change; in particular, in nationalizing and

 banning all private property on the island as well as all bank accounts. However, the company

had started foreign branches a few years prior to the revolution; the company moved the all

important Bacardi international trademarks out of the country to the Bahamas prior to the

revolution as well as constructing a plant in Puerto Rico after the prohibition era to save in

 import taxes for rum being imported to the US. This helped the company survive after the

communist government nationalized all Bacardi assets in the country.[9]

Bacardi family members had close ties to the US political elite as well as organisations of

state such as the CIA. The family funded various Cuban exile organisations such as CANF.

Embittered Bacardi helmsman Jose Pepin Bosch bought a surplus B-26 bomber with the hopes

of bombing Cuban oil refineries (the bold plan was foiled when a picture of the bomber appeared

on the front page of The New York Times). He was also allegedly involved in the CIA plot to

assassinate Fidel Castro; documents uncovered during congressional investigations into

John F Kennedy's death bring to light a message outlining how he had plans to assassinate

Castro, his brother (Raúl Castro) and Che Guevara. The RECE (Cuban Representation in Exile)

also receives funding from Bacardi family members.

More recently, Bacardi lawyers were influential in the drafting of the 1996 Helms-Burton Act

which sought to extend the scope of the United States embargo against Cuba.[10] In 1999

Otto Reich, a lobbyist in Washington on behalf of Bacardi Rum, drafted section 211 of the

1999 Omnibus appropriations act, a bill that became known as the Bacardi Act. Section 211

denied trademark protection to Cuban businesses products expropriated after the Cuban

revolution, a provision keenly sought by the Bacardi family. The act was aimed primarily at

Havana Club brand in the US, which had been registered by the Cuban government.[11]

Section 211 has been challenged unsuccessfully by the Cuban government and the European

Union in US courts; however, the act has been ruled illegal by the WTO (August 2001). The

US Congress has yet to re-examine the matter.

Bacardi and Cuba today

Bacardi drinks are not found in Cuba today. The main brand of rum in Cuba is called

 Havana Club, a formerly private company nationalised by the government. Drinks now

 made in the former Bacardi distillery are sold in Cuba under the name Caney.

Bacardi, despite having no business tie (in terms of production) to Cuba today, have

decided to re-emphasise their Cuban heritage in recent years. This is mainly due to

commercial reasons: facing increased competition in the Rum market from the now international

brand Havana Club, the company concluded that it was important for sales to associate their

rum with Cuba. TV adverts with slogans of 'Welcome to the Latin Quarter' are but one

example of this. In 1998, under the distinctive bat logo, the phrase "company founded

in Santiago de Cuba in 1862" was added.

Bacardi has faced criticism and legal problems for supposedly attempting to falsely

convince consumers they were purchasing rum made in Cuba rather than just marking

 its heritage. Bacardi adverts in Spain, since 1966, had described a popular combination

of rum and coke as "rum and coke". However, after 1998, it began to describe the drink

as Cuba Libre - literally translated as "free Cuba" which is the original name of the drink

 and how it's mostly called in Latin America. In this instance, Bacardi faced a legal ruling

from the Spanish Association of Advertising Users which forced the company to stop the

advert. They concluded that it could "mislead the viewer as to the true nature of the product"

as the advert contained so many pieces of Caribbean imagery, one might conclude it

came from Cuba (Ospina p79). Bacardi continues to fight a war in the courts with the

Cuban government of the rights to trademarks around the world.

The Bacardi legacy lives on in Santiago and Havana through their grand buildings and

historic significance. The Bacardi Building (Edificio Bacardi) in Old Havana is regarded as

one of the finest art deco buildings in Latin America.[citation needed]

Brands

Bacardi has made several acquisitions to diversify away from the eponymous Bacardi rum

brand. In 1992 Bacardi acquired Martini & Rossi, the famous Italian producer of Martini vermouth

and sparkling wines.[citation needed] In 1998 the company acquired Dewar's scotch and

 Bombay Sapphire gin from Diageo for $2 billion.[citation needed] Bacardi acquired the

Cazadores tequila brand in 2001[citation needed] and in 2004 purchased Grey Goose, a French

made vodka, from Sidney Frank for $2 billion.[citation needed] In 2006 Bacardi purchased

 New Zealand vodka brand 42 Below.[citation needed] Other associated brands include the

 US version of Havana Club, Drambuie Scotch whisky liqueur, Disaronno Amaretto, Eristoff

vodka, B&B and Bénédictine liqueurs, and the Canadian alcopop Rev.[citation needed]

Despite focusing on the middle and lower end of the price spectrum, some Bacardi rum

offerings have achieved a modicum of success at international spirit ratings competitions.

 For example, their eight-year añejo rum earned gold medals at the 2008 and 2009 San

Francisco World Spirits Competition.[12]

Hemingway connection

Ernest Hemingway ordered his daiquiris with Bacardi White Label rum[13] and mentions

Hatuey beer in two of his works: To Have and Have Not and The Old Man and the Sea.

Chalk's Ocean Airways Flight 101

On 19 December 2005 Chalk's Ocean Airways Flight 101 from Fort Lauderdale, Florida to

Bimini, Bahamas, with an unscheduled stop at Watson Island, Miami, Florida, crashed off

Miami Beach, Florida. Sergio Danguillecourt, a member of the board of directors of Bacardi

Ltd and a great-great-grandson of the rum company's founder Don Facundo Bacardi Masso,

 and his wife Jacqueline Kriz Danguillecourt were on board. There were no survivors.

United States headquarters

The Bacardi building in Midtown Miami on

 Biscayne Boulevard served as the USA headquarters of Bacardi.

By 2006 Burger King, a fast food company, had announced that it planned to move its

headquarters to a proposed office building in Coral Gables.[14] By 2007 Burger King instead

renewed the lease in its existing headquarters for 15 years and canceled plans to move into

the Coral Gables building. Instead Bacardi USA leased the 15-story headquarter complex.

Bacardi had employees in seven buildings across Miami-Dade County at the time.[15]

Bacardi vacated its former headquarter buildings on Biscayne Boulevard in Midtown Miami.

Miami citizens began a campaign to label the buildings as "historic". University of Miami

professor of architecture Allan Schulman said "Miami's brand is it's [sic] identity as a tropical

city. The Bacardi buildings are exactly the sort that resonate with our consciousness of what

Miami is about".[16] In 2007 Chad Oppenheim, the head of Oppenheim Architecture + Design,

described the Bacardi buildings as "elegant, with a Modernist [look combined with] a local

 flavor."[17]

Mexico City buildings

Bacardi had architects Ludwig Mies Van Der Rohe and Felix Candela design office buildings and a bottling plant

 for them in Mexico City during the 1950s. The building complex was added to the tentative

list of UNESCO's World Heritage Site list on 20 November 2001.[18]

References

  1. ^ Fact Sheet
  2. ^ Andrew Ross Sorkin (June 21, 2004). "Bacardi to Buy Grey Goose,Stirring More Talk of
  3. I.P.O.". New York Times. 
  4. ^ Bacardi & Company Limited Company Profile from Yahoo!
  5. ^ Our heritage: the early years from the company's corporate website
  6. ^ Gjelten, Tom (2008). Bacardi and the Long Fight for Cuba. Viking. 
  7. ^ "Daiquiri". http://www.strawberry-daiquiri-recipe.com/strawberry-daiquiri-invention.php
  8. ^ a b Charles A. Coulombe. Rum. Citadel Press. 
  9. ^ a b c Rum and Revolution an August 2008 review of Bacardi and the Long Fight for Cuba
  10. (ISBN 067001978X) from The Washington Post
  11. ^ Hernando Calvo Ospina (2002). Bacardi: The Hidden War. Pluto Press. 
  12. ^ The Helms-Burton Act from thinkquest.org/
  13. ^ Ann Louise Bardach: Cuba Confidential. Penguin books 2002. p131
  14. ^ "Proof66.com Website". http://www.proof66.com/display.asp?t=rum. Retrieved 2009-08-06. 
  15. ^ A. E. Hotchner (1966). Papa Hemingway. Random House. ISBN 0394439902
  16. ^ Beaird, Daniel. "OFFICE MARKET UPDATE Vacancies drop as job growth remains steady."
  17.  Southeast Real Estate Business. August 2006. Retrieved on October 2, 2009.
  18. ^ "Bacardi U.S.A. to take over BK's planned Coral Gables headquarters." South Florida Business Journal.
  19. Tuesday May 8, 2007. Retrieved on October 2, 2009.
  20. ^ "Miami weighs preserving iconic Bacardi buildings." Associated Press at New York Daily News.
  21.  Tuesday April 7, 2009. Retrieved 3 October 2009.
  22. ^ Rousseau, Bryant. "In Conversation: Chad Oppenheim." Businessweek. 27 June 2007. 2.
  23. Retrieved on 3 October 2009.
  24. ^ "Ludwig Mies Van Der Rohe and Felix Candela's Industrial Buildings - UNESCO World Heritage Centre".
  25.  http://whc.unesco.org/en/tentativelists/1596/. Retrieved 2010-04-18. 

Bibliography

  • Gjelten, Tom. Bacardi and the Long Fight for Cuba: The Biography of a Cause (Viking: 2008).

 External links

Retrieved from "http://en.wikipedia.org/wiki/Bacardi" Categories: Companies established in 1862 |

 Companies of Puerto Rico | Distilleries | Privately held companies | Rums