|Country :||USA / Canada|
|Type :||Varies / Blended and Bourbon|
Seagram Company Limited, The
Seagram Company Limited, The
Seagrams is now Pernod-Richard
Seagrams :Seagram's is a large company producing a lot of different whiskies. Further more they own a lot of distilleries etc.
The Seagram Company Ltd. was a large corporation headquartered in Montreal, Quebec, Canada that was the largest distiller of alcoholic beverages in the world. Toward the end of its independent existence it also controlled various entertainment and other business ventures. The Seagram assets have since been acquired by other companies, notably PepsiCo, Diageo, and Pernod Ricard.
The Seagram Building, the company's American headquarters office tower at 375 Park Avenue in New York City, was designed by architect Ludwig Mies van der Rohe with Philip Johnson. The former Seagram headquarters in Montreal now belongs to McGill University, under the name Martlet House.
In 1857, a distillery was founded in Waterloo, Ontario. Joseph E. Seagram became a partner in 1869 and sole owner in 1883, and the company became known as Joseph E. Seagram & Sons. Many decades later, Samuel Bronfman founded Distillers Corporation Limited, in Montreal, which enjoyed substantial growth in the 1920s, in part due to Prohibition in the United States.
In 1928, a few years after the death of Joseph E. Seagram (1919), the Distillers Corporation acquired Joseph E. Seagram & Sons, and took over 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. Thus despite its earlier Waterloo history, the Seagram name is most closely associated with the Bronfman family. However, it is not correct to say, as is often done, that Samuel Bronfman founded Seagram, since the Seagram name itself pre-dated the company he founded.
It has been alleged that Seagrams had dealings with American bootleggers during Prohibition.
Original Seagram Distillery buildings in Waterloo, now converted to residential condominiums
After the death of Samuel Bronfman in 1971, Edgar M. Bronfman was Chairman and Chief Executive Officer (CEO) until June 1994 when his son, Edgar Bronfman, Jr., was appointed CEO.
In 1981, cash rich and wanting to diversify, 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. But 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 Cooler products. With rising star Bruce Willis as pitchman, Seagram rose from fifth place among distillers to first in just two years.
In 1987, Seagrams engineered a $1.2 billion takeover of important French cognac maker Martell & Cie.
On April 6, 1995, after being approached by Edgar Bronfman, Jr., DuPont announced a deal whereby the company would buy back its shares from the Seagram company for the amount of $9 billion. Seagram's 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.
The rationale for this divestiture was that Edgar Bronfman, Jr., grandson of Samuel Bronfman, wanted Seagram to branch out into the entertainment business. Bronfman, Jr., used the proceeds of the sale to help acquire Universal Studios, MCA, PolyGram, and Deutsche Grammophon. Seagram also gained control of a number of Universal theme parks.
In 1997, the Seagram Museum, formerly the original Seagram distillery in Waterloo, was forced to close due to lack of funds. The building is now the home of the Centre for International Governance Innovation. The two original barrel houses are now the Seagrams Lofts condominiums. There are also almost 5 acres (2.0 ha) of land that will be the home of the future Balsillie School of International Affairs.
In 2000, controlling interest in Seagram's entertainment division was acquired by the Vivendi Group, and the beverage division by Pernod Ricard. By the time Vivendi auctioned off Seagram's drink business, beyond its original high-profile brand names the once renowned operation consisted of around two hundred and fifty drinks brands and brand extensions.
In 2001, 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's name from Pernod Ricard. Seagram's Ginger Ale was named the winner at the 2009 World Cup of Ginger Ale in Chicago.
On April 19, 2006, Pernod Ricard announced that they would be closing the Seagram Lawrenceburg Distillery located in Lawrenceburg, Indiana.
|to official Seagrams or related web pages.|
The Seagram Company Limited.
Lawrenceburg, Indiana, USA
|Crown Royal||Crown Royal|
|Seagrams V.O.||Seagrams V.O.|
Pernod Ricard to acquire Seagram Spirits & Wine jointly with Diageo
Paris - 2000 Pernod Ricard announces that it has, jointly with Diageo, signed an agreement to purchase the Seagram Spirits and Wine business from Vivendi Universal for US$ 8.15 billion dollars in cash, on a debt free basis. Pernod Ricard will contribute approximately US$ 3.15 billion dollars (Euro 3.7 billion) or 38.6% of the total purchase price.
Pernod Ricard and Diageo will split the Seagram business based on the Framework Agreement signed between the two companies as previously announced.
The joint acquisition is subject to the consent of the relevant competition authorities. The necessary filings have been prepared and will be submitted shortly.
Patrick Ricard, Chairman and CEO of Pernod Ricard, declared, "I would like to say how excited we are by this acquisition which represents a unique opportunity to redefine the industry world-wide. I believe that Seagram's magnificent portfolio of brands has a distinguished heritage and a great future within our Group. Together with Diageo, we at Pernod Ricard look forward to working with the employees of Seagram to realise the strong potential that exists to grow our enlarged business."
Brands to be acquired by Pernod Ricard
The main brands to be acquired by Pernod Ricard include Chivas Regal, Glen Grant, Royal Salute and Glenlivet whiskies as well as Martell Cognac and Seagram's Extra Dry gin. Pernod Ricard will acquire several leading national brands in Latin America, Asia and Europe. In addition Pernod Ricard will own Seagram's Scotch whisky manufacturing and bottling facilities in Scotland.
The brands acquired by Pernod Ricard reported volumes of approximately 14 million cases and sales of approximately US$ 1.2 billion for the fiscal year 2000.
The price excludes any value for the distribution of Absolut vodka and Mumm champagne.
Enhanced global reach
Historically, Pernod Ricard has built a world class portfolio through the acquisition and development of international brands (Jameson, Havana Club and Jacob's Creek) and regional brands (Larios, Clan Campbell, Wild Turkey and Ramazzotti).
Prior to this transaction, Pernod Ricard was already the fifth largest distilled spirits company world-wide with distilled spirits and wine being at the core of the Pernod Ricard business.
The purchase of Seagram adds a number of well known brands to Pernod Ricard's portfolio, considerably improving the Group's existing presence in North America, Latin America and Asia and gives Pernod Ricard, as a major industry player, critical mass on a world-wide scale.
Pernod Ricard's enlarged Scotch whisky portfolio means that the Group will become the number 2 player world-wide in a key category for the spirits industry. Chivas Regal is the world-wide leader in the deluxe category and one of the few truly global brands in the spirits industry; its acquisition brings Pernod Ricard a unique opportunity to develop the brand's full potential. The addition of Chivas Regal to Pernod Ricard's distribution network will give added leverage to the whole portfolio.
With the acquisition of Martell and its existing Bisquit and Renault brands, Pernod Ricard becomes the number 2 player in the cognac market. Martell is an exceptionally prestigious brand with major strengths in the U.K and South-East Asia. Furthermore Martell complements Chivas Regal in the de luxe category of spirits. In Portugal, the addition of Macieira brandy and other local brands will create the number 2 of the spirits market.
The acquisition of Seagram's Extra Dry gin strengthens significantly Pernod Ricard's presence in the USA. Likewise the acquisition of Natu Nobilis, Orloff and Montilla in Brazil will considerably boost Pernod Ricard's presence in Latin America. In India, Royal Stag is the leading premium whisky in the market.
Overall, Pernod Ricard will emerge from the transaction as the third largest global distilled spirits company in the world with an impressive brand portfolio including 11 brands featured in the Impact International (February 2000) list of top 100 global brands.
Non strategic brands
Pernod Ricard and Diageo will jointly supervise the disposal of Seagram's non strategic brands.
Pernod Ricard will finance this acquisition through committed borrowing facilities. A refinancing programme has been arranged, including the sale of financial assets and non-core business and the issue of a convertible bond.
Pernod Ricard management expects the transaction to be earnings enhancing in year one.
Pernod Ricard was advised on this acquisition by J.P. Morgan and Societe Generale. The legal advisors were Macfarlanes, Debevoise & Plimpton and Arthur Andersen advised on tax matters.