The Seagram Company Ltd. (which
traded as Seagram's) was a Canadian multinational
conglomerate
Conglomerate or conglomeration may refer to:
* Conglomerate (company)
* Conglomerate (geology)
* Conglomerate (mathematics)
In popular culture:
* The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes
** Co ...
formerly headquartered in
Montreal
Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
,
Quebec
Quebec ( ; )According to the Government of Canada, Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is ...
. Originally a
distiller of
Canadian whisky based in
Waterloo, Ontario
Waterloo is a city in the Canadian province of Ontario. It is one of three cities in the Regional Municipality of Waterloo (formerly Waterloo County). Waterloo is situated about west-southwest of Toronto. Due to the close proximity of the c ...
, it was once (in the 1990s) the largest owner of
alcoholic beverage
An alcoholic beverage (also called an alcoholic drink, adult beverage, or a drink) is a drink that contains ethanol, a type of alcohol that acts as a drug and is produced by fermentation of grains, fruits, or other sources of sugar. The c ...
lines in the world.
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
Universal Pictures (legally Universal City Studios LLC, also known as Universal Studios, or simply Universal; common metonym: Uni, and formerly named Universal Film Manufacturing Company and Universal-International Pictures Inc.) is an Americ ...
and its
theme park
An amusement park is a park that features various attractions, such as rides and games, as well as other events for entertainment purposes. A theme park is a type of amusement park that bases its structures and attractions around a central ...
s, 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
Pernod Ricard () is a French company best known for its anise-flavoured pastis apéritifs Pernod Anise and Ricard Pastis (often referred to simply as ''Pernod'' or '' Ricard''). The world’s second-largest wine and spirits seller, it also pr ...
. 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
Waterloo most commonly refers to:
* Battle of Waterloo, a battle on 18 June 1815 in which Napoleon met his final defeat
* Waterloo, Belgium, where the battle took place.
Waterloo may also refer to:
Other places
Antarctica
*King George Island (S ...
,
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central C ...
,
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tota ...
.
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
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
company called
Distillers Company
The Distillers Company Limited was a leading Scottish drinks and pharmaceutical company and, at one time, a constituent of the FTSE 100 Index. It was taken over by Guinness & Co. (now part of Diageo) in 1986 in a transaction which was later f ...
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. The Bronfmans shipped liquor from Canada to the French-controlled
overseas collectivity
The French overseas collectivities ('' collectivité d'outre-mer'' or ''COM'') are first-order administrative divisions of France, like the French regions, but have a semi-autonomous status. The COMs include some former French overseas colon ...
Saint Pierre and Miquelon off the then-
Dominion of Newfoundland
Newfoundland was a British dominion in eastern North America, today the modern Canadian province of Newfoundland and Labrador. It was established on 26 September 1907, and confirmed by the Balfour Declaration of 1926 and the Statute of Wes ...
, which was then shipped by bootleggers to
rum rows in New York, New Jersey and other states.
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
Edward Frowde Seagram (September 28, 1873 – February 1, 1937) was an entrepreneur, philanthropist and politician in Ontario, Canada. He served as mayor of Waterloo, Ontario, Waterloo from 1906 to 1907.
The son of distiller Joseph E. Seagra ...
; 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 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-vetted chronicles.
In the 1930s, when Seagram set up 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.
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.
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 1978 Seagram's took over the
Stonyfell
Stonyfell is an eastern suburb in the foothills of Adelaide, Australia, within the council area of the City of Burnside. It has parks with walking tracks, and two creeks running through it. St Peter's Collegiate Girls' School is the only school ...
winery in the eastern foothills of
Adelaide
Adelaide ( ) is the list of Australian capital cities, capital city of South Australia, the state's largest city and the list of cities in Australia by population, fifth-most populous city in Australia. "Adelaide" may refer to either Greater A ...
from
Dalgety Australia, around which time the winemaking part of the business at Stonyfell was wound up.
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
A white knight is a mythological figure and literary stock character. They are portrayed alongside a black knight as diametric opposites. A white knight usually represents a heroic warrior fighting against evil, with the role in medieval literatu ...
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 it became a 24.3% owner of DuPont. By 1995, Seagram was DuPont's largest single shareholder with four seats on its board.
In 1986, the company started a memorable 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.
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, 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
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is co ...
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
MCA may refer to:
Astronomy
* Mars-crossing asteroid, an asteroid whose orbit crosses that of Mars
Aviation
* Minimum crossing altitude, a minimum obstacle crossing altitude for fixes on published airways
* Medium Combat Aircraft, a 5th gene ...
from
Matsushita, whose assets included
Universal Pictures
Universal Pictures (legally Universal City Studios LLC, also known as Universal Studios, or simply Universal; common metonym: Uni, and formerly named Universal Film Manufacturing Company and Universal-International Pictures Inc.) is an Americ ...
and its
theme park
An amusement park is a park that features various attractions, such as rides and games, as well as other events for entertainment purposes. A theme park is a type of amusement park that bases its structures and attractions around a central ...
s. Later, Seagram purchased
PolyGram
PolyGram N.V. was a multinational entertainment company and major music record label formerly based in the Netherlands. It was founded in 1962 as the Grammophon-Philips Group by Dutch corporation Philips and German corporation Siemens, to be ...
and
Deutsche Grammophon
Deutsche Grammophon (; DGG) is a German classical music record label that was the precursor of the corporation PolyGram. Headquartered in Berlin Friedrichshain, it is now part of Universal Music Group (UMG) since its merger with the UMG family o ...
.
In 2000, Edgar Bronfman Jr. sold controlling interest in Seagram's entertainment division to
Vivendi, and the beverage division to
Pernod Ricard
Pernod Ricard () is a French company best known for its anise-flavoured pastis apéritifs Pernod Anise and Ricard Pastis (often referred to simply as ''Pernod'' or '' Ricard''). The world’s second-largest wine and spirits seller, it also pr ...
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.
Also, a license from
Pernod Ricard
Pernod Ricard () is a French company best known for its anise-flavoured pastis apéritifs Pernod Anise and Ricard Pastis (often referred to simply as ''Pernod'' or '' Ricard''). The world’s second-largest wine and spirits seller, it also pr ...
to produce Seagram's Cooler Escapes and Seagram's malt-beverage brands has been held by
North American Breweries
FIFCO USA is an American brewing company based in Rochester, New York.
Established as North American Breweries by New York City investment firm KPS Capital Partners to manage its brewery acquisitions ( Genesee Brewing Company, Pyramid, and ...
(formerly KPS) since 2009.
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
Trinidad and Tobago (, ), officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean. Consisting of the main islands Trinidad and Tobago, and numerous much List of islands of Trinidad and Tobago, small ...
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. 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."
In 2018, Diageo sold several Seagram's brands to
Sazerac including Seagram's VO, but retained the Seven Crown brand.
Legacy
The Seagram name survives today in various well-known drinks.
Seagram's Seven Crown, used to make the American cocktail,
7 and 7
A Seven and Seven or 7 and 7 is a highball cocktail, a mixed alcoholic drink containing Seagram's Seven Crown, a blended whiskey, and 7 Up, a lemon-lime soft drink. It is typically served with ice. It was one of the most popular drinks in the ...
, is produced by
Diageo, while Seagram's V.O. is produced by
Sazerac.
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.
Seagram's House, the former company headquarters in Montreal, was donated to
McGill University
McGill University (french: link=no, Université McGill) is an English-language public research university located in Montreal, Quebec, Canada. Founded in 1821 by royal charter granted by King George IV,Frost, Stanley Brice. ''McGill Universit ...
by
Vivendi Universal in 2002, then renamed
Martlet House
Martlet House (formerly Seagram House) is a Scottish baronial style building at 1430 Peel Street in Downtown Montreal, Quebec. The building was completed in 1928 by architect , with additions in 1931, 1947 and 1955.
Previously the Montreal headq ...
. The landmarked
Seagram Building
The Seagram Building is a skyscraper at 375 Park Avenue, between 52nd and 53rd Streets, in the Midtown Manhattan neighborhood of New York City. Designed by Ludwig Mies van der Rohe with minor assistance from Philip Johnson, Ely Jacques Ka ...
, once the company's American headquarters in
New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the U ...
, was commissioned by
Phyllis Lambert, daughter of Seagram CEO
Samuel Bronfman, and designed by architect
Ludwig Mies van der Rohe with
Philip Johnson
Philip Cortelyou Johnson (July 8, 1906 – January 25, 2005) was an American architect best known for his works of modern and postmodern architecture. Among his best-known designs are his modernist Glass House in New Canaan, Connecticut; the p ...
. Regarded as one of the most notable examples of the
functionalist aesthetic and a prominent instance of corporate
modern architecture
Modern architecture, or modernist architecture, was an architectural movement or architectural style based upon new and innovative technologies of construction, particularly the use of glass, steel, and reinforced concrete; the idea that for ...
, 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.
The Bronfman family sold the Seagram building to
TIAA
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF), is a Fortune 100 financial services organization that is the leading provider of financial services in the academic, research, ...
for $70.5 million in 1979.
The
Seagram Museum
The Seagram Museum was a museum in Waterloo, Ontario, Canada, preserving the heritage of the once venerable Canadian distillery Seagram. Located at 57 Erb Street West, the museum operated from May 1984 to March 1997. Designed by architect Barton ...
, formerly the original Seagram distillery in
Waterloo, Ontario
Waterloo is a city in the Canadian province of Ontario. It is one of three cities in the Regional Municipality of Waterloo (formerly Waterloo County). Waterloo is situated about west-southwest of Toronto. Due to the close proximity of the c ...
, was forced to close due to lack of funds in 1997. The building is now the home of the
Centre for International Governance Innovation as well as
Shopify
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. Shopify is the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. The Shopify platform offers online ret ...
. The two original barrel houses are now the Seagram Lofts condominiums. There were almost of open land, upon which the
Balsillie School of International Affairs was subsequently built; construction began in 2009, and was completed in 2010.
"Construction continues on the Balsillie Campus"
July 2, 2010.
See also
*
* Seagram Museum
The Seagram Museum was a museum in Waterloo, Ontario, Canada, preserving the heritage of the once venerable Canadian distillery Seagram. Located at 57 Erb Street West, the museum operated from May 1984 to March 1997. Designed by architect Barton ...
References
* Faith, Nicholas. ''The Bronfmans: The Rise and Fall of the House of Seagram'', 2006. .
External links
Seagram Museum Collection RG 490
– Brock University Library Digital Repository
{{Authority control
Distilleries in Canada
Canadian brands
Coca-Cola brands
Defunct manufacturing companies of Canada
Defunct mass media companies of Canada
Companies based in Montreal
Entertainment companies of the United States
Manufacturing companies established in 1857
Manufacturing companies disestablished in 2000
Bronfman family
Ginger ale
Jewish Canadian history
Pernod Ricard brands
Former Vivendi subsidiaries
Canadian companies established in 1857