In 1857, a
distillery was founded in
Waterloo,
Ontario.
Joseph E. Seagrambecame a partner 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 Kingdomcompany called
Distillers CompanyLimited, 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.
[1] The Bronfmans shipped liquor from Canada to the French-controlled
overseas collectivity Saint 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.
[2][3]
In 1928, a few years after the death of Joseph E. Seagram (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 well prepared for the end of Prohibition in 1933 with an ample stock of aged whiskeys ready to sell to the newly opened American market, and it prospered accordingly. Although the Seagram brand is most closely associated with the
Bronfman family the Seagram name itself pre-dated the company Bronfman founded.
Although he was never convicted of criminal activity, Samuel Bronfman's dealings with bootleggers during the Prohibition-era in the US have been researched by various historians and are documented in various peer-vetted chronicles.
[4][5]
In the 1930s, when Seagram set up business in the United States, they 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.)
[6]
Original Seagram Distillery buildings in Waterloo, now converted to residential condominiums
After the death of Samuel Bronfman in 1971,
Edgar M. Bronfman was named Chairman and Chief Executive Officer (CEO) until June 1994 when his son,
Edgar Bronfman Jr., was appointed CEO.
[7]
From the 1950s, most of the family holdings of Distillers-Seagram was held through holding company
Cemp Investments, which was owned by the four children of Samuel Bronfman. The three most popular Seagram distilled products in the 60's-90's were Seven Crown, VO, and Crown Royal.
In 1981, cash-rich and wanting to diversify, the U.S.-based subsidiary Seagram Company Ltd. engineered 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. In the end, Seagram lost out in the Conoco bidding war, though in exchange for its stake in Conoco Inc., it became a 24.3% owner of DuPont. By 1995, Seagram was DuPont's largest single shareholder with four seats on the board of directors.
In 1986, the company started a memorable TV commercial campaign advertising its Golden
wine coolerproducts. With rising star
Bruce Willisas pitchman, Seagram rose from fifth place among distillers to first in just two years.[
citation needed]
In 1987, Seagram engineered a $1.2 billion takeover of French cognac maker
Martell & Cie.
In 1995, Edgar Bronfman Jr. was eager to get into the film and electronic media business. On April 6, 1995, after being approached by Bronfman, Jr., DuPont announced a deal whereby the company would buy back its shares from the Seagram company 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, Jr., used the proceeds of the sale to acquire
controlling interest in
MCA, whose assets included
Universal Pictures and its
theme parks. Later, Seagram purchased
PolyGram and
Deutsche Grammophon.
In 2000, Edgar Bronfman Jr. sold controlling interest in Seagram's entertainment division to
Vivendi, and the beverage division to
Pernod Ricardand
Diageo. By the time Vivendi began auctioning off Seagram's beverages business, the once-renowned operation consisted of around two hundred and fifty drink brands and brand extensions, in addition to its original high-profile brand names.
In 2002,
The Coca-Cola Companyacquired 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.
[8]
On April 19, 2006, Pernod Ricard announced that they would be closing the former Seagram distillery in
Lawrenceburg, Indiana. However, 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.
[9] 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 Bronfman Jr.) stated that the decisions leading to the demise of Seagram “was a disaster, it is a disaster, it will be a disaster...It was a family tragedy.”
[10]
Or something like that!