Seagram Company

Seagram maintained research departments at their Louisville, Kentucky and LaSalle, Quebec plants. At LaSalle, subjects of research included topics regarding distilling, production, packaging, distilling by-products and alternative uses for alcohol.

Charles Bronfman (1931- ) is the second son and forth child of Seagram Company founder Samuel Bronfman. Appointed director and Vice President of the House of Seagram in 1958, he oversaw Canadian operations. He was named Executive Vice President in 1971, and rose to President on 1975. Bronfman was appointed Deputy Chairman of the Board in 1979, as Co-Chair in 1986. He presided over the Executive Committee beginning in 1975. Charles Bronfman has actively supported Canadian Jewish and Israeli charities and founded Montreal Expos baseball franchise, where he served as Chairman and principal owner from 1968 to 1990.

Designed and commissioned in 1955 and completed in 1958, the Seagram Building is the modernist masterpiece of architect Ludwig Meis van der Rohe. The building's innovations include its unified exterior formed by bronze framing and amber-tinted floor-to-ceiling windows; and its open plaza and setback. The project was shepherded by Phyllis Lambert, daughter of Seagram Company founder Samuel Bronfman. Architect Philip Johnson collaborated on the building and designed its Four Seasons restaurant. In 1979, the building was sold to Teacher's Insurance and Annuity Association of America, but it still houses the Seagram Company headquarters.

Paul Masson was born in 1859 in Burgundy, France and moved to Santa Clara County, California in 1896. Masson established an association with Charles LeFranc, founder of new Almaden winery and purchased his own winery in Saratoga known as the Mountain Winery. Three years after Masson's 1940 death, Distillers Corporation-Seagram Ltd. bought the company. In 1993, Seagram sold the company to Celliers du Monde.

Both plants were purchased by Seagram as part of it's massive expansion into the U.S. after the repeal of Prohibition. The Lawrenceburg plant, which manufactured Kessler brands, was purchased in 1933. The Calvert Distillery in Relay was acquired the next year.

Seagram treasurer, James E. Friel served as on the board from 1938 and as a Vice President from 1940 until his death c. 1955.

This series contains the records of Russell W. McLauchlan, Director of Quality Control. McLauchlan served as Director of U.S. Quality Control since 1960, and added international duties in 1971.

Frederick J. Lind served as Vice President, General Counsel, Secretary, Director at Seagram. He sat on the Board of Directors from 1959-1970.

The scientific department operated a laboratory in Cranbury, New Jersey. Research seems to have been focused on pharmaceutical, cosmetic, and food and drug studies for Seagram subsidiaries Joseph E. Seagram & Sons, Inc., Pharma-Craft Corporation, and OccuMed Corporation.

Prior to operating out of the company's New York headquarters, Seagram's personnel matters were handled from the head office in Louisville, Kentucky.

Seagram's post-prohibition success has been attributed to a number of factors. In part it was due to the company's marketing. Advertising for Seagram's high-quality, lighter "blended" whiskies was directed to an upper class drinker including the "Moderation" campaign begun in 1934. Samuel Bronfman closely oversaw all of the company's marketing efforts ensuring that everything associated with Seagram products was to project quality a from brand names, to bottles, labels, advertisements and the corporate offices.

In 1957, Samuel's eldest son Edgar assumed the presidency of Joseph E. Seagram & Sons and control of U.S. operations. The change in leadership marked a shift in the company's management style, from Sam's hands-on administration typical of entrepreneurs, to Edgar's use of modern management principles. This trend was paralleled in the company's marketing which was to rely more heavily on prominent advertising firms and professional marketing and consumer studies.

Records in Series D. Accounting date back to prohibition. At that time, the Bronfman's business was operating in a constantly evolving web of legislation. The law permitted off-shore consignment of liquor in locales such as Saint Pierre and Miquelon, Belize, the Bahamas, and Bermuda.

Anticipating the end of Canadian and eventually American prohibition, Samuel Bronfman began to establish himself as a distiller and opened a plant at Ville LaSalle outside Montreal, Quebec. The business was incorporated in May, 1924 as Distillers Corporation, Ltd., named in honor of the venerable Scottish liquor giant Distillers Company, Ltd. In 1926, Samuel Bronfman and his brother Allan proposed a cooperative venture to Distillers Company Ltd. The arrangement was an enormous victory for the young Distillers Corporation Ltd. and the beginning of an ambitious expansion effort.

In 1927, the Bronfman's acquired the Joseph E. Seagram & Sons Co. of Waterloo, Ontario and established the holding company Distillers Corporation - Seagram Ltd. (D. C. - S. L.) which was held 75% by the Bronfmans and Distillers Co. Ltd. and 25% by Seagram stock holders.

After World War II, Seagram began to expand its business beyong North America. International efforts were consolidated into Seagram Overseas Corporation in 1956, but real expansion did not occur until the next decade. In 1968, international sales divisions were unified with the development of SOSCO, the Seagram Overseas Sales Company. The primary goal of SOSCO was to expand sales beyond the U.S. military (their main customer) by establishing distributers in civilian markets throughout the world and by developing name recognition for Seagram products. Geographically, SOSCO focused its initial efforts on Europe and Latin America. Increased efforts in Asia, the South Pacific and Africa began in 1970 and 1971.

Contemporaneously, Seagram began to establish or purchase wine and spirits companies in major international markets. In 1972, Seagram Vintners International was formed as the international wine marketing division of SOSCO. Later wine efforts include The Seagram Company, Ltd. Wine Division, created in 1982; The Seagram Wine Companies, established in 1984 as a division of Joseph E. Seagram ? The Seagram Classics Wine Company, established in 1984 as a sales and marketing division of The Seagram Wine Company; and Seagram Vintners, created in 1985 and consisting of the Seagram Chateau & Estates Wine Company and The Seagram Classics Wine Company.

The Seagram post-prohibition success has been attributed to a number of factors. In part it was due to the company's marketing. Advertising for Seagram's high-quality, lighter "blended" whiskies was directed to an upper class drinker including the "Moderation" campaign begun in 1934. Samuel Bronfman closely oversaw all of the company's marketing efforts ensuring that everything associated with Seagram products was to project quality a from brand names, to bottles, labels, advertisements and the corporate offices.

In 1957, Samuel's eldest son Edgar assumed the presidency of Joseph E. Seagram & Sons and control of U.S. operations. The change in leadership marked a shift in the company's management style, from Sam's hands-on administration typical of entrepreneurs, to Edgar's use of modern management principles. This trend was paralleled in the company's marketing which was to rely more heavily on prominent advertising firms and professional marketing and consumer studies.

Edgar Bronfman assumed the presidency of Joseph E. Seagram & Sons and control of U.S. operations in 1957. While his father Samuel continued his involvement in the daily management of the company, he gradually decreased his control. At the same time, many of Sam's most trusted lieutenants were retiring, leaving room for Edgar to reorganize the company. The changes marked a shift in the company's management style, from Sam's hands-on administration typical of entrepreneurs, to Edgar's use of modern management principles. After his father's death in 1971, Edgar assumed the presidency of D. C.-S. L. In 1975, he became board chairman and changed the company name to The Seagram Company, Ltd. Edgar is also active in community affairs and is president of the World Jewish Congress. Recently he has been working to gain restitution for Jews whose property was stolen by Nazis.

In 1994, management of The Seagram Company was turned over to Edgar's son, Edgar, Jr., who took control at a time when liquor tastes were changing and worldwide sales were decreasing. He continued his father's efforts to de-emphasize the sale of whisky and secured the rights to distribute the popular Absolut Vodka. Edgar, Jr.'s tenure has been characterized by his moves outside of the liquor business and into the entertainment industry.

Harold Fieldsteel served as Assistant Controller, Controller, Treasurer, Executive Vice President, Administration and Finance at Seagram. He sat on the Board of Directors from 1975 to 1983 and as an honorary director from 1984-1994.

The Seagram post-prohibition success has been attributed to a number of factors. In part it was due to the company's marketing. Advertising for Seagram's high-quality, lighter "blended" whiskies was directed to an upper class drinker including the "Moderation" campaign begun in 1934. Samuel Bronfman closely oversaw all of the company's marketing efforts ensuring that everything associated with Seagram products was to project quality a from brand names, to bottles, labels, advertisements and the corporate offices.

In 1957, Samuel's eldest son Edgar assumed the presidency of Joseph E. Seagram & Sons and control of U.S. operations. The change in leadership marked a shift in the company's management style, from Sam's hands-on administration typical of entrepreneurs, to Edgar's use of modern management principles. This trend was paralleled in the company's marketing which was to rely more heavily on prominent advertising firms and professional marketing and consumer studies.

Samuel Bronfman, founder of the Seagram Company, Ltd., and his family immigrated from the Jewish settlement of Bessarabia, Russia to Manitoba, Canada in 1889. In 1903, after initial struggles, the industrious family entered the hotel business and quickly succeeded, with a large part of the profits generated by the hotel's bars. But the rising tide of temperance in the 1910s put a damper on the family's hotel enterprise. In response, Samuel Bronfman moved to Montreal and set up a mail order liquor business to capitalize on federal laws that still permitted interprovincial spirits trade. The Bronfmans established distribution points in the west and Sam marketed their products through the mail. Later, the Bronfmans expanded their efforts and established a series of "export houses" along the U.S. border.

Anticipating the end of Canadian and eventually American prohibition, Samuel Bronfman began to establish himself as a distiller. In 1923, he purchased the Louisville, Kentucky Greenbriar Distillery, which he had dismantled and rebuilt at Ville LaSalle outside Montreal. The business was incorporated in May, 1924 as Distillers Corporation, Ltd. In 1926, the Bronfmans began a cooperative venture with its namesake Distillers Company Ltd. of Scotland. DCL financed the Bronfmans who in turn acted as their sales agents in Canada. In exchange, the Scots received half interest in the Canadian company. The arrangement was an enormous victory for the young Distillers Corporation Ltd. which began an ambitious expansion effort.

First, the Bronfmans acquired the Joseph E. Seagram & Sons Co. of Waterloo, Ontario in 1927. The Seagram plant needed modernization, but the company had a respected name, recognized brands, and a huge stock of aging whiskey. With this purchase, the Bronfman's established the holding company Distillers Corporation - Seagram Ltd. (DC-SL) which was held 75% by the Bronfmans and Distillers Co. Ltd. and 25% by Seagram stockholders.

A year after the 1932 repeal of prohibition, DC-SL entered the U.S. market late in 1933 with a line of blended liquors and began a series of U.S. distillery acquisitions including the Calvert Distillery in Relay, Maryland; established the American subsidiary Joseph E. Seagram & Sons Inc.; and constructed a new plant in Louisville, Kentucky.

Seagram's success in the U.S. could be attributed to two things - quality products and savvy advertising. In June of 1934, the company introduced Seagram Five and Seven Crowns. The products became volume leaders almost overnight. Advertising for the "crowns" and other Seagram products were directed to an upper class drinker. The company furthered its image of excellence and restraint with its famous "Moderation" campaign begun in 1934.

During World War II, Seagram limited its consumer production and lent its facilities to the war effort. At the same time, Samuel Bronfman focused his attentions on expansion purchasing more distilleries in the U.S. and Canada and entering new sectors of liquor business including rum and wine. Post-war growth included acquisition of the Chivas Brothers Company, Myers' Rum, and the Puerto Rico Rum Company; founding of Captain Morgan Distillers in Jamaica; purchase of 51% of the Puerto Rico Distillers Group and augmentation of its wine business with the purchases of the Jordan Wine Co. of Ontario; Danforth Wines; and G. H. Mumm and Co. and large investment in Barton & Guestier, which they later augmented. In the early 1950s, Seagram entered the oil business. Their investments would eventually include establishment of Frankfort Oil Company and acquisition of Texas Pacific Coal and Oil Company and others.

Although still legally a Canadian company, beginning in 1932 much of Seagram's operations were run out of New York. In 1954, the company completed construction of its new headquarters at 375 Park Avenue. The building, designed by Ludwig Meis van der Rohe and commonly known as the Seagram building, has come to be considered a masterpiece of modern architecture.

In addition to founding and running DC-SL, Samuel Bronfman contributed money and leadership to many charitable causes, first in Montreal's large Jewish community and later in National and International efforts. In 1939 he was elected to serve as President of the Canadian Jewish Congress (CJC) and worked on behalf of Jewish war refugees. By the 1950s, much of Bronfman's charitable activities focused on fundraising for Israel.

On July 10, 1970 Samuel Bronfman died. After his death, the company's assets and leadership passed to his sons Edgar and Charles. Charles remained in Montreal operating out of the company's Peel Street offices while Edgar, who operated out of 375 Park Avenue in New York, assumed the presidency of DC-SL. Edgar had served as president of Joseph E. Seagram & Sons and controlled U.S. operations since 1957. During that time many of Sam's most trusted lieutenants retired, leaving room for Edgar to reorganize the company. The changes marked a shift in the company's management style, from Sam's hands-on administration typical of entrepreneurs, to Edgar's use of modern management principles.

Seagram continued to grow under Edgar's leadership. International business was consolidated into SOSCO, the Seagram Overseas Sales Company and Seagram began to establish or purchase wine and spirits companies in major international markets. Changes were also occurring outside of the company's spirits interests. In 1980, Seagram sold the Texas Pacific Oil Company for $2.3 billion. The next year they acquired 27.9 million shares of Conoco for $2.6 billion and sold them to E. I. du Pont de Nemours & Company in exchange for a 20.2% interest in the company. In 1988, they acquired juice maker Tropicana Products, Inc.

In 1994, management of The Seagram Company was turned over to Edgar's son, Edgar, Jr., who took control at a time when liquor tastes were changing and worldwide sales were decreasing. With his father's support, Edgar, Jr., made the critical decision in 1994 to sell the company's share of DuPont, which was generating dividends equal to three-quarters of Seagram's earnings from its own operations, and switch the investment to the more glamorous entertainment industry. Bronfman failed in a bid to take over Time-Warner, Inc. His major acquistion was the purchase of 80% of MCA, Inc., (which combined the MCA record label and the Universal motion picture studio and was later renamed Universal Studios, Inc.) from the Japanese conglomerate Matsushita. In 1998, Seagram acquired another record label, Polygram N.V., from the Dutch multinational Philips Electronics and merged it into the Universal Music Group to form the world's largest music company. By then, revenues from the traditional beverage operations had fallen from 70 per cent of total revenue to less that 33 per cent. Seagram's share of the domestic liquor market fell to 17 per cent.

However, the entertainment business proved much more volatile than expected and a field in which Seagram's traditional organizational capabilites were simply not relevant. Universal Studios lost market share and suffered a run of expensive box-office flops. The Internet threatened the entire foundation of the commercial music business, leading to a new round of mergers creating giant multimedia companies like the 2000 merger of Time-Warner with America Online. Edgar, Jr., found a merger partner in Vivendi, a French multinational that had transformed itself from a provider of water and sewerage into a multimedia empire under the leadership of Jean Marie Messier. The merger was actually a Vivendi takeover, with the Bronfmans holding a 25 per cent stake in the merged Vivendi-Universal. The Seagram liquor properties were soon after disposed of to their major competitor, Diageo. Messier continued to pile up debt on his empire-building spree until he was dismissed in 2001, and Vivendi-Universal shares fell to less than one-sixth of their value at the time of the merger. The Bronfmans are believed to have lost over $3 billion in the collapse, and the Seagram Company, Ltd., was gone. In 2003, Vivendi sold the Seagram Building in New York and the Seagram art collection to help pay its debts.