Business of Alcohol: Gin and Rum History

A period of high gin consumption in England during the 1700s, leading to social problems and government intervention.

Dutch created Genever (gin) in the 17th century, a potent spirit flavored with juniper berries and other herbs.

British law that regulated gin production and sales, making it more difficult and costly to produce gin.

Gin's popularity affected trade policies as tariffs were placed on French wine and brandy, to reduce spending and protect/enable domestic gin production and reduce revenue leakage to France.

Rum's development has influenced politics, reflecting its importance in trade, consumption, and potentially colonial power dynamics.

Gin, initially inexpensive, was frequently abused in England due to its easy accessibility, low cost, easy consumption, and lack of sophistication/familiarity in proper drinking techniques/habits.

Gin mixed with quinine water; a drink that became popular in the 1800s.

Social movements that advocated for reducing or eliminating alcohol consumption.

The demand by US-based Bacardi for compensation from Cuba for rum seized during the embargo.

The act of forbidding by law the production, sale, transportation, possession, and consumption of alcoholic beverages.

The belief that alcohol causes societal problems, often tied to economic and moral concerns.

Many prohibition movements were largely inspired by Protestant moral beliefs.

A movement in Canada influenced by British and American examples, often linked to the Protestant movement in Quebec.

A referendum in Canada in 1896 on the issue of prohibition, which resulted in a close but non-conclusive outcome.

A negative economic impact, impacting communities connected to the liquor trade.

Most Canadian provinces supported prohibition in the referendum but Quebec strongly opposed it, resulting in a very close vote.

Rum production, particularly in Caribbean colonies, was driven by sugar plantations, which relied on enslaved labor.

British sailors received a daily rum ration, which persisted into the 1970s

Rum's production and consumption were tied to political and economic conflicts, especially between Britain and its colonies.

Cuban rum, in particular Bacardi, was a major supplier to the Spanish royalty and became a big business through the 20th century. Its operations were affected after the Cuban Revolution.

The cocktail Cuba Libre, a mix of rum and cola, was popular but its political significance also increased following the 1950s Cuban revolution

Post-1950s Cuban Revolution, Bacardi's operations in Cuba ended and they relocated to Puerto Rico and elsewhere.

Colonists in tropical areas frequently suffered from malaria and relied on quinine, often mixed with gin, to combat it.

The closure of breweries and saloons during Prohibition resulted in widespread job losses, affecting not just brewers, but also related industries such as barrel makers, truckers, and waiters.

The prohibition of alcohol led to a thriving black market where illegal production and sale of alcohol flourished, fueling crime and organized crime.

In 1927, Ontario replaced Prohibition with government control of alcohol sales through the Liquor Control Board of Ontario (LCBO), aiming to promote temperance and restore respect for the law.

The LCBO, initially focused on strict control, gradually relaxed its regulations over time, allowing for the introduction of cocktail bars, ending passport requirements for alcohol purchases, and eventually allowing wine displays.

The global alcohol market is dominated by a small number of multinational enterprises, with the largest, AB InBev, controlling a significant portion of the market.

While alcohol sales are legal, overconsumption can lead to serious health and social problems.

AB InBev, the world's largest brewer, resulted from a merger of AMbev (Latin America) and Interbrew (Europe), combining brewing interests from different continents.

Large multinational enterprises like AB InBev, Seagram, and others hold significant power in global markets and influence the production, distribution, and marketing of alcohol.

The merger of Anheuser-Busch InBev and SABMiller in 2016, creating the world's largest beer company. This merger gave AB InBev control over an estimated one-third of the global beer market.

The strategy of major alcohol companies to expand their brands and sales globally. This often involves acquisitions of local breweries and adapting marketing strategies to local tastes.

The importance of well-established and familiar brands in the alcohol industry. These brands often have a long history and strong consumer loyalty, which contributes to their success.

The conflict between the alcohol industry's need to increase sales and the negative health implications of excessive alcohol consumption. Governments try to regulate consumption, while companies face pressure to boost profits.

The limitations placed on alcohol advertising in most countries to reduce its influence on consumption, particularly among vulnerable groups.

Countries use two methods to limit alcohol advertising: voluntary codes of conduct by producers and legal restrictions.

Producers agree to follow guidelines on alcohol advertising, often focusing on responsible drinking messages.

Governments set rules about what can and cannot be advertised for alcohol.

French law from the early 1990s that strictly limits alcohol advertising, aiming to control smoking and alcohol consumption.

This law banned alcohol advertising on television, in cinemas, and sponsorship of events, aiming to protect public health.

Large companies operating in many countries, sometimes facing tensions between health regulations and profit goals.

Regulations can be harder to impose in smaller countries due to the power of large international companies.

Producers often try to influence regulations to keep selling their products, sometimes putting health concerns second.