Seagram’s History

THE UNKNOWN SEAGRAM’S HISTORY

© History Oasis

Joseph paused to take in the bustling scene before him—his newly built whiskey distillery was humming with activity as workers hauled barrels of grain and stoked the fires under copper stills.

After years of planning and saving, they were finally ready to begin distilling!

As he watched the first bushels being loaded into the masher, Joseph couldn't help but feel a wave of pride...and nerves.

He'd risked everything on this venture—his reputation, his life savings. Folks had called him crazy when he started buying up this land on the outskirts of Waterloo.

"There's already too many distilleries these days," they scoffed. "You're a fool if you think you can compete with the big players in Ontario!"

Joseph believed otherwise—he had a vision for creating something unique. Walking the distillery floor, he inspected each step with a meticulous eye, demanding utmost care and precision at every stage.

The heavy sweet smell of corn mash filled the air as Joseph gave the signal to his master distiller. Heart pounding, he watched the clear spirit begin trickling from the copper pot still into the receiving barrel.

"We'll age this one twice as long as the other local brands, in charred oak barrels" Joseph decreed, grinning in anticipation. He was certain the extra years would smooth and mellow the whiskey into something special.

As he filled a tin cup with the very first sample off the still, Joseph's mind raced with ideas and optimism.

Raising it in salute, he made a silent toast—to pursuing his passions against the odds. He took a sip and smiled.

It was just as he'd imagined. Now the real work for Seagram’s history would begin!

THE RISE OF SEAGRAM'S DISTILLERY

Portrait of Joseph E. Seagram
© History Oasis

In 1846, a young entrepreneur named Joseph E. Seagram made the bold decision to open a small whiskey distillery in Waterloo, Ontario amidst difficult economic times in Canada.

Seagram risked everything on this endeavor despite naysayers claiming that the whiskey business was dying.

Starting with just a few employees and second-hand equipment in a small stone building, Seagram focused intensely on honing his craft and producing high quality whiskey.

He experimented extensively with new distilling methods and by 1852 had developed a smooth, mellow tasting Canadian whiskey that began winning awards.  

Word of Seagram’s exceptional whiskey spread rapidly.

By 1857, demand was so high that he upgraded to a larger distillery made of brick and invested in modern steam-powered equipment, increasing capacity 10 fold. This willingness to embrace innovation characterized Joseph Seagram’s leadership.

Over the decades Seagram never rested on his laurels, continuing to expand production in Waterloo and worldwide.

By 1919 when Joseph Seagram passed away, his once humble distillery had grown into one of the largest whiskey producers globally, shipping over 1 million barrels annually.

His whiskey was considered a benchmark for quality and smoothness that competitors strived to imitate.  

The small distillery that Joseph Seagram started with his own grit and vision in Waterloo went on to become a Canadian business icon.

His relentless focus on excellence laid the foundations for Seagram Distillery’s rise to international dominance in the spirits industry. Even over a century later, Seagram’s remains an iconic name in whiskey.

SEAGRAM’S ENDURING SLOGAN

a vintage Seagram's ad "The Seven Sour"
Source: Seagram's

When Prohibition ended in 1919, Seagram’s was swift in positioning its marquee whiskey, Seagram’s Seven Crown, to capture public attention in the United States.

At a time when the whiskey drinking public had to identify quality new brands, Seagram’s seized upon emphasizing Seven Crown’s trademark velvety smoothness.

Marketing it with the catchy slogan “It’s the whiskey that’s smooth and mellow” helped make Seagram’s Seven Crown an instant success and one of the most widely embraced and highest-selling whiskies in North America.  

This memorable and meaningful slogan not only helped drive rapid popularity of Seagram’s Seven Crown, but also established smoothness and mellowness as defining characteristics of the Seagram’s brand.

Almost a century later, “smooth” and “mellow” remain qualities that whiskey connoisseurs associate positively with the Seagram’s name and as enduring parts of its identity within popular culture.

Seagram’s pioneering slogan remains an early and shining example of savvy marketing that resonates through generations.

PIONEERING COLUMN STILL INNOVATION

© History Oasis

Never one to rest on convention, in 1924 Seagram’s became the first North American distillery to adopt an innovative new whiskey production technology: the Coffey column still.

Invented in Scotland but slow to catch on, column stills allowed for higher proof alcohol distillation on an ongoing continual basis, unlike traditional pot stills.

While met with initial skepticism by traditionalists, Seagram’s founder Joseph E. Seagram saw the promise in this disruptive technology early on.

By being the first distillery on the continent to take a chance implementing column stills, Seagram’s whiskey production efficiency improved vastly—output increased substantially while lowering costs.

In one decisive move, Seagram’s had gained an immense competitive advantage.

Competitors scrambled to upgrade their equipment to column stills or risk going out of business.

Here Seagram’s had once again exhibited business foresight and a willingness to departure from age-old distilling techniques in favor of a promising process innovation that would transform the industry.

Column still whiskey quickly became the North American norm, with Seagram’s having led the way.

CREATING SEAGRAM’S SEVEN CROWN WHISKEY

Vintage Seagram's vintage Seven Crown ad
Source: Seagram's

Just as Prohibition was coming to an end in 1933, Seagram’s master blender Lewis H. Wattle created a phenomenally successful new blended whiskey—Seagram’s Seven Crown.

It contained a precise, proprietary blend of seven different aged whiskies that produced an exceptionally smooth, rich and complex flavor profile that proved irresistible to discerning drinkers.

Thanks to a massive marketing push as the drinking public returned, smart branding emphasizing taste and quality, as well as contemporarily-designed packaging, Seagram’s Seven Crown quickly rose meteorically in popularity to become the highest selling whiskey in North America within its first year.

Over time, as Seagram’s expanded distribution internationally, Seagram’s Seven Crown became not only the best selling Canadian whiskey globally but also the overall top selling spirit worldwide—a position it still proudly holds today.

Almost a century later, drinkers worldwide continue to value Seagram’s Seven Crown as an iconic blended whiskey, and emblematic of Seagram’s legacy of quality and taste innovation within the spirits industry.

INVENTING THE BLENDED WHISKEY

Vintage Seagram's V.O. Ad
Source: Seagram's

Never resting on their laurels, just one year after debuting the extraordinarily successful Seagram’s Seven Crown whiskey, Seagram’s once again showcased pioneering innovation by introducing the world’s first blended whiskey in 1934.

Named Seagram’s V.O., it consisted of a blend of neutral grain spirit and aged whiskey.

This new blended whiskey category that Seagram’s initiated caught on quickly with the public. By using grain spirits to soften whiskey’s harshness and create lighter, smoother flavors, Seagram’s V.O. appealed to vodka and gin drinkers in a way that traditional whiskey had not.

It brought an entirely new audience into enjoying whiskey cocktails and established the popularity of blended whiskey.

The name V.O. was short for Very Original, and embodied Seagram’s pride in again bringing true innovativeness to the spirits market. As both the original blended whiskey and the one that set the standard for all others to come, Seagram’s V.O. maintained immense prestige for decades as one of the top selling whiskies globally.

Here the blend masters at Seagram’s once more proved their knack for meeting evolving consumer tastes and creating an entirely new spirits category that would reshape the industry.

CHIVAS BROTHERS ACQUISITION

Vintage Chivas Regal ad
Source: Chivas Brothers

Seeking to grow its global footprint in the mid 20th century, in 1957 Seagram Distillers made a strategically significant acquisition—purchasing the centuries-old Scotch whisky producer Chivas Brothers, owners of Chivas Regal blended Scotch whisky.

Though little known in North America at the time, Chivas Regal already enjoyed prestigious status as a leading premium Scotch brand in Europe and Asia.

Under Seagram’s ownership, Chivas Regal expanded distribution substantially throughout the 1950s and 60s across North America and emerging markets, fueled by growing post-war prosperity driving demand for premium imported Scotch whisky.

With access to Seagram’s marketing muscle and global distribution network, Chivas Regal cemented its place as one of the world’s top selling blended Scotch whisky brands—second only to market leader Johnnie Walker.

By dominating the value blended Scotch segment, Chivas became an important international growth vehicle and profit center that contributed greatly to Seagram's rise into a global spirits conglomerate.

The prescient acquisition of Chivas Brothers to capture growing appetites for blended Scotch represented astute leadership by Seagram’s executive team to compete and win on the worldwide spirits stage.

PURCHASING ABSOLUT VODKA

Absolut vodka ad
Source: Absolut

In 1976, Seagram’s made another high-impact acquisition, purchasing the Absolut vodka brand from Sweden for $36 million dollars along with its distillery Lången Husby.

Absolut was an emerging premium vodka in the US market that was gaining traction with its single-estate wheat vodka and iconic bottle packaging, but struggling financially and limited by production constraints.

Seagram’s investment took Absolut mainstream, rapidly scaling up promotion, distribution and manufacturing capacity many times over.

With Seagram’s mighty marketing engine now propelling it, Absolut became the fastest growing spirit brand in America for over a decade. Its smart “Absolut Perfection” campaign hyped its Swedish heritage and pure taste.

By the mid 1980s, fueled by surging consumer demand for premium vodkas, Absolut had remarkably overtaken well-established brands to become the top selling import vodka in the lucrative US market.

And by the early 1990s it ascended to best-selling premium vodka globally —a position it maintains today under Pernod Ricard ownership. Yet again Seagram’s had identified a promising brand in an up-and-coming spirits category to purchase and then catapulted to new heights through its commercial prowess.  

CROWN ROYAL ACQUISITION

Vintage Crown Royal ad
Source: Crown Royal

As Seagram neared the pinnacle of its power in the late 1990s, it sought to more decisively dominate the growing Canadian whisky segment.

The opportunity arose in 2000 to acquire Crown Royal, an iconic Canadian whisky brand with deep roots going back to the 1930s that had built tremendous loyalty and cachet both in Canada and globally.  

Owning the Crown Royal powerhouse brand along with Canadian Club and Seagram’s VO Canadian whiskies gave Seagram an unassailable competitive position controlling over 75% of the entire Canadian whisky market.

It effectively consolidated Seagram’s leadership position and market share within the high growth Canadian whisky category to complement its diverse portfolio of vodkas, Scotch and American whiskeys.  

The addition of Crown Royal also added substantial premium branding, profit pools and global distribution reach to the Seagram’s arsenal as demand for high-end and flavors-infused Canadian whiskies accelerated.

Both a strategic coup and cultural win for its Canadian heritage, Seagram’s acquisition of Crown Royal exemplified its maturation into a Canadian business icon with dominance across multiple spirits categories.

SELLING SEAGRAM’S NON-ALCOHOLIC DIVISION TO COCA-COLA

Seagrams ginger ale ad
Source: The Coca-Cola Company

By the early 2000s, Seagram maintained a thriving line of non-alcohol mixer brands like Seagram’s Ginger Ale, Seagram’s Tonic Water and Seagram’s Seltzers that were often used to complement its spirits in cocktails.

Seeking increased strategic focus on its core whiskey and vodka labels, in 2002 Seagram made the decision to sell off its non-alcoholic mixer drink division to Coca-Cola for a reported $1.2 billion.

Divesting popular mixer trademarks like Seagram’s Ginger Ale enabled Seagram to streamline around higher profit hard liquor offerings to leverage its distilling heritage.

Meanwhile it gave distribution scale and retail access for Seagram's trusted non-alcoholic brands to tap growth under Coca-Cola's masterful marketing umbrella.

Offloading the mixer lines catalyzed Seagram’s efforts to channel investment into accelerating Crown Royal, Chivas Regal and other spirits franchises.

The play exemplified Seagram's financial acumen and understanding of brand strengths in shifting non-essential mixer brands to a strategic acquirer in Coke.

This concentrating of focus helped fuel headway for both corporations in an era of game-changing marketplace innovations reshaping consumer preferences within the total beverage sector.

PERNOD RICARD TAKES CONTROL

Penod Ricard ad
Source: Pernod Ricard

After over 150 years of proud history and groundbreaking innovations that led to Seagram claiming status as one of the most prominent distillers worldwide, in 2004 longtime rival Pernod Ricard orchestrated a major takeover.

The French spirits conglomerate purchased Seagram for $8.15 billion, drawn to acquiring its diverse whiskey and vodka brands and global distribution network.

The takeover marked the end of Seagram operating as the iconic Canadian spirits innovator that had reshaped drinking culture for generations.

However Pernod Ricard opted to preserve the Seagram’s name and nurture the growth of its timeless liquor brands like Seagram’s V.O., Seagram’s Seven Crown, Chivas Regal and Absolut Vodka that retain tremendous consumer loyalty today.  

While no longer independent, under Pernod Ricard’s wing Seagram’s greatest spirit brands continue to thrive.

Through prescient acquisitions, constant innovation and supreme quality, Seagram secured its place as a trailblazing drinks pioneer whose products left an indelible mark on the industry and continue delighting consumers worldwide.

The Seagram legacy persists thanks to respectful stewardship by a new caretaker.

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