Bacardi: The Story Behind Cuba’s Legendary Liquor Brand

If you like rum, you’re going to love this
video because today, we’ll be covering the history of one of the greatest rum distilleries
in the world, Bacardi. Our story begins way back in the early 19th
century in Cuba. Now, back then Cuba was still a Spanish colony,
and so emigration from Spain was happening all the time. That is exactly what Facundo Bacardi did in
1830, when he was just 16 years old. He was originally from Sitges, a port city
in Northeastern Spain, but the bad economic situation forced him to try his luck in Cuba. He landed in Santiago de Cuba, the island’s
second largest city, and found work at a local distillery. It was owned by a man called John Nunes, and
it was actually one of the city’s first rum distilleries. You see, the Spanish Crown had originally
banned the production of rum in its colonies in order to protect its expensive wine industry. The ban had only been reversed in 1796, and
John Nunes was one of the first rum producers to get back in on the action. Of course, the rum back then didn’t have
a lot in common with the rum we know today. It had been produced the same way since the
16th century, and the people of Cuba called it aguardiente, which literally means fiery
water. It was made by mixing water with molasses,
the byproduct of refining sugarcane. The resulting mixture would be left to ferment,
and it would later be boiled off into an alembic and condensed, producing a dark liquid that
was 85% alcohol. Aguardiente was so harsh that most Cubans
didn’t use it as a drink, but as medicine, soaking it in towels to alleviate headaches
and to treat wounds. Essentially, it was a drink for buccaneers,
and what it lacked in reputation, it more than made up for in throat-burning capacity. Facundo spent many years producing aguardiente
in John’s distillery, but he dreamed of creating a more refined beverage. His first step to realizing his dream came
in 1843, when he married Amalia Moreau, the daughter of a wealthy plantation owner who
had served in Napoleon’s army. Using his wife’s capital, Facundo was eventually
able to buy John Nunes’ distillery for $3,500 in 1862, thus giving birth to the Bacardi
distillery. The property Facundo bought came along with
a colony of fruit bats, which are symbols of good fortune in Cuba and would later come
to symbolize the Bacardi brand. With the distillery in his control, Facundo
spent months perfecting his production method. He tried various strains of yeast, different
concentrations of molasses and water, and adjusting the distillation procedure itself. You see, the fermentation of molasses produces
several different alcohols, each with its own unique chemical composition, taste and
boiling point. The lighter alcohols are the first ones to
evaporate during the boiling process, and they’re mostly a mixed bag:
Esters give off a fruity aroma and were nice to have, but methanol is toxic and not fit
for human consumption. The heavier alcohols, called fusel oils, are
a similar story: They’re responsible for the distinctive
taste of aguardiente, but are also to blame for the nasty headaches that follow. Although Facundo probably had no idea about
the chemistry behind the whole thing, after months of experimentation he finally figured
out which alcohols he wanted to keep. The end result was rum of exceptionally high
quality: the liquid was very light, almost transparent, and was free from the foul odors
of aguardiente. At first people would come to his distillery
to fill up their jugs and barrels, but once Facundo saw just how much demand there was
for his drink, he started selling it in bottles instead. Marked with the lucky fruit bat, the Bacardi
rum spread like wildfire, and by 1868 it was sold across all of Cuba. Facundo was a humble man and had no plans
for international expansion, but after he died in 1886, his son Emilio took over and
he had much greater ambitions. Emilio was a fiercely nationalistic man, and
in fact he had used Bacardi’s resources to support Cuban revolutionaries in all three
wars for Cuban independence. This got him exiled to Morocco twice, but
after Cuba became independent in 1902, Emilio returned and became the mayor of Santiago,
eventually getting elected to the Cuban Senate. During these years he transformed Bacardi
into one of Cuba’s biggest companies, which now owned plantations and distilleries across
the island. The Bacardi brand wouldn’t spread its wings
internationally until 1910, when Emilio opened a bottling facility in Barcelona, near his
father’s birthplace. Bacardi’s obvious international target was
the US, but in 1919 the States ratified the Prohibition amendment. Surprisingly, Prohibition actually wasn’t
as bad for Bacardi as you may think. Although the company couldn’t export its
drinks to the US, nothing stopped Americans from flying to Cuba to buy them. In the first year after the 18th Amendment
got repealed, Bacardi sold over 80,000 cases of booze in the US. They got around America’s expensive import
duty by opening a facility in Puerto Rico. The reasons behind Bacardi’s success in
the States are two: the Daiquiri and the Cuba Libre. These two cocktails were among the first to
showcase Bacardi’s excellent use as a mixer, and they are still exceedingly popular to
this day. The end of the 1950s, however, would be a
disastrous time for Bacardi. In 1959 the Batista regime crumbled under
the socialist revolution of Fidel Castro and Che Guevara. Facundo’s descendants were actually avid
supporters of the revolution and had donated thousands of dollars to the cause. This made it all the more shocking when Castro’s
new government turned around and seized all of Bacardi’s assets, which were valued at
$76 million. This betrayal left the company in chaos, and
it eventually reincorporated in the Bahamas one year later, where it remains to this day. Despite losing their Cuban assets, Bacardi
was propelled to record heights by demand from the US. In 1964 Bacardi sold 1 million cases of liquor,
and double the amount in 1968. By 1980 it had replaced Smirnoff as the number-one
liquor brand in the US with annual sales approaching 8 million cases. Bacardi kicked off the 1990s with the wildly
successful Bacardi Breezer, released in 1993. A few months later, Bacardi spent $1.4 billion
to acquire Martini & Rossi, the company behind the Martini brand of vermouth, which is also
the namesake of the popular Martini cocktail. Heading into the 21st century, Bacardi had
bottling facilities across Western Europe and North America, while keeping its manufacturing
sites firmly in the Spanish-speaking world. Now this is where we should talk about Havana
Club, one of the best-selling brands of rum in the world. It was created by the Arechabala family in
Cuba, and they competed with Bacardi up until 1959, when Fidel Castro seized all of their
assets as well. Under Castro’s regime, the Cuban government
started exporting Havana Club across the globe, earning a ton of money in the process. They couldn’t sell it in the States, of
course, because of the Cuban embargo, which led Bacardi to buy the US rights to Havana
Club from the now-exiled Arechabala family. Bacardi started selling Havana Club in the
US in 1996, and was immediately slapped by a lawsuit from the Cuban government. The litigation sat at a stalemate until 2002,
when the European Union vouched for Bacardi in front of the World Trade Organization. In 2006 Bacardi finally won the lawsuit, and
to this day they are the ones selling Havana Club in the US, with the Cuban government
selling it everywhere else. There was some panic about what would happen
if Barack Obama was to lift the embargo, but with Donald Trump at the wheel, that’s probably
not gonna happen. Nevertheless, Bacardi remains dominant, and
today it is one of the largest distilleries in the world and one of the few ones that
remain private. It is still run by Facundo’s descendants,
who have grown the company’s portfolio to over 200 different labels. Whether Bacardi will continue thriving in
the cutthroat liquor business is hard to say, but considering what they’ve survived over
the years, it’s a safe bet that they’ll be around for a long time. Thanks for watching! If you enjoyed this video, please consider
supporting us on Patreon; that will help us cover the interesting stories of other big
companies. You can watch our previous videos in the Behind
the Business playlist, and you should subscribe in case you haven’t already. Once again, thanks a lot for watching, and
as always: stay smart.

100 Replies to “Bacardi: The Story Behind Cuba’s Legendary Liquor Brand

  1. The liquor business is pretty cutthroat…but as long as you can produce either a high quality product, or a low-cost product, you are probably fine. If you can manage to produce a product of reasonable quality at a very fair price, like Bacardi, your legacy is practically assured.

  2. "Betrayal"

    Oh, please. They were socialists. The whole point is to seize the means of production so they can be owned collectively by the people rather than any private companies. What did they expect was going to happen?

  3. Took the Barcardi tour. Found out a woman by the name of Georgina saved barcardi’s recipes and paperwork during a raid on that estate. Theirs a restaurant named in her honor there. PR overall is a interesting place! Also didn’t grasp how intwined “BLACK” history is in PR.

  4. You missed the bit where Bacardi's production of Havana Club was condemned by the World Trade Organisation but has allowed Bacardi to sell a fake ‘Havana Club’ made in Puerto Rico in the United States only. Their friendly ties in Washington have helped them pull off a section 211 since they both have a grudge against Cuba.

    Also, there was a bit about when Baracrdi moved to Bermuda shortly after the revolution. The company failed in moving any of the talents that produced Bacardi de Cuba and was forced to start new. The islands may be close, but climates are still different enough to produce a different rum from the original. Left without work. The real producers of Bacardi de Cuba found work with Arrechabala who later formed a partnership with the French company, Pernod Ricard. Havana Club was performing better than Bacardi due to this partnership.

  5. Bacardi and their fruit bat. The bat that eats the fruit of the Holy Spirit if any Christian drinks this poison.

  6. Bacardi own the rights to Havana Club in the US, Pernod Ricard own the rights to Havana Club internationally

  7. 2:00 is that a motherfucking trap? In my fucking rum? I didn't know the gods was so pleased with me as to bless me with the two greatest thing on the planet.

  8. Not a very good quality rum these days. The best is Ron de Barrilito from Puerto Rico, the Tres Estrellas version. They should pronounce the name right, Bacardí is pronounced with an accent on the last "I".

  9. you are mispronouncing everything. the name Bacardí is Catalan and the accent is on the last i. also, you mispronouncing Sitges, its pronounced in Catalan more like Seejus.

  10. Come to Portugal if you want to still taste the Burning Water. Its one of our national drinks. I never drank anything worst than aguardente.

  11. The map of bottling facilities will become out of date because their only German plant in Buxtehude will close this year.

  12. Pronounced: bah-cahrr-DEE. It is annoying to hear a narrator with a Spanish accent mispronounce names. “Noons”?!😖

  13. very important detail is that castro did not say he was socialist till years after he had control of everything. thats why almost all the population helped him and wanted him. he was supposed to be different from batista. he ended up being worse.

  14. Tell the Bacardi business to stop calling my 9 yo friend and asking her if she signed up for a job application. Especially if it sounds like another 9 yo on the other side.

  15. When I hear them discontinued 151 I went out and bought up cases of it. Many memories back in the 70’s . Share your Bacardi moments!

  16. I was a kid when I first saw a bottle of Bacardi what intrigued me the most was the logo. At that time I had no idea what rum was and just thought it was some kind of concoction used by witch doctors.

  17. So Emilio was exiled to my country twice!
    I'm gonna buy a bacardi celebrating a visit that happened more than 100 years ago, twice

  18. Wikipedia says the headquarter is in Hamilton, Bermuda NOT Bahamas , Dump Ass!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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