I.

Introduction
Bacardi Limited is an international firm that is one of the most competitive alcohol

producers in the world. Since its rich history, which originates in the Bahamas during the Rum

trade, Bacardi Limited has expanded its product line to include hip rum drinks for young,

partying teens, and expensive, “premium” liquors for sophisticated drinkers. This variety of

products is the result of a merge between several large liquor companies. Though the company

is held privately, it is the only alcohol producer to own a tanker for oversea transport, just one

indicator of how large and successful the company is.

The purpose of this report is to analyze what makes Bacardi Limited tick. It will include
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the company, the mission statement, the company’s code of
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ethics, and its steps toward social responsibility.

II. Company Overview

The distilled beverage industry is international, because in most non-Muslim countries

enjoy alcoholic beverages. Alcohol companies work very hard to develop brand loyalty in the

costumers, as most people prefer specific brands of beers, wines, and liquors. In America, 26.6

percent of all distilled liquors sold in the US is vodka, popular for its mixability(1). US

companies have been forced to include socially responsible messages about drinking responsibly,

in order to combat underage consumption and alcoholism. In 2004, US alcohol companies

contributed $350 billion to the GDP(2).

A major player in this industry is Bacardi Limited. Since its creation in 1862 in Cuba,

Bacardi has survived the chaos that accompanied the Cuban 10-years war, Castro, and Guvera.

Cuba maintains superior international relationships, which facilitated its combination with other

1
Plotkin, Robert. "Adams Market Research Alcohol Beverage Industry." 2006. Adams Beverage Group. 25 Nov
2007 <http://www.adamsbevgroup.com/sw/2005/0505_stw/0505vdk.asp>.
2
"Economics." Discus.org. 2007. Distilled Spirits Council of the United States . 25 Nov 2007
<http://www.discus.org/economics/>.

1
distilled liquor companies to create a powerhouse merger.

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Figure 1: The Bacardi Bat is a well-known icon. It is derived from the fruit

bats that lived in the rafters of the barn of the original production site in Cuba.

The Board of Directors is chaired by Facundo L. Bacardi, who was first elected a director

in 1993. He is a descendant of the founder of the company. The President and Chief Executive

Officer is Andreas Gembler. He is the former C.E.O. of Philip Morris and is chairman of the

board at a chocolate company in Belgium, Café-Tasse. His BA in Business Administration is

from Bremen, Germany. The other major investors are listed on the Barcardi Limited website

under the Board of Directors tab. They include Guy Peyrelongue- President and C.E.O. of

L’Oreal USA, Robert Corti- Chairman of Avon Products Inc, Philip Sheaer- president of The

Estee Lauder Companies Inc., and Toten Comas, who originally started as a rum blender for the

Bacardi plant in Nassau(3,4).

The C.E.O of Bacardi International Limited and Global Treasurer of Barcardi Limited is

Michael Brennan. His background is in international accounting, and he has been with Bacardi

for seven years(4). The Executive Management Team is comprised of the stereotypical

gentlemen. There is one man who is not white, and there are two women on the team. This team

is where the Presidents of different regions come together, and it reports to the Board of

3
"Guy Peyrelongue, President & CEO of L'Oreal USA Promoted to Rank of 'Officier' by the Prestigious French
Legion of Honor.." Business Line 03/06/2001 25 November 2007 <http://www.encyclopedia.com/doc/1G1-
71260973.html>.
4
"Bacardi Limited Elects New Directors to Board;." Netherlands Corporate News 2006 25
November 2007
<http://www.netherlandscorporatenews.com/archive/en/2006/09/13/l012.htm>.

2
Directors.

III. Code of Ethics

Bacardi lumps together social responsibility and ethics. Its ethics statement can be found

on page 4/6 under the Policies/Corporate and Social Responsibilities page. In seven “principles”

Bacardi pledges to abide by the laws of the places it sells its products, clearly label all of its

products, not to market to underage individuals, to condemn participating in any dangerous

activity while drinking, including driving, and not to market the alcohol as medicinal. This

mission was declared in 2004 and is the result of legislation that is aimed at stopping marketing

toward underage consumers. Bacardi is vehement in its opposition to the illegal purchase or

consumption of alcohol, and does its best to promote moderate consumption. Bacardi provides

online cooking demonstrations to show that alcohol can be used for more functions than getting

drunk. It is clear that drunken behavior is a concern for Bacardi(5).

IV. Mission Statement

Bacardi’s Mission is to “distribute its expanding portfolio of international brands to trade

clients and consumers around the world”, to “discourage abusive consumption of our brands and

to urge consumers who choose to drink to do so responsibly”. This mission statement is

available at the Bacardi Limited website(5). As it is a major producer of distilled liquors, the

goals of the company seem logical: to expand the sales of the products internationally is the goal

of most mainstream companies, and to expand the product line successfully is to expand the

profit. The company seems to be sincere in its message to discourage drunkenness. It spends

time and money on programs to restrict itself and other liquor companies in marketing to

underage buyers and in combating dangerous drunken behaviors.

V. Social Responsibility
Bacardi has a “long history in the corporate responsibility arena, focusing on programs to

5
"Bacardi Limited: About Us." Bacardi Limited. 2007. Bacardi Limited. 25 Nov 2007
<http://www.bacardilimited.com/?#page=home>.

3
promote responsible drinking and responsible marketing of [its] products, and to combat the

misuse and abuse of [its] products”. Bacardi uses self-regulation and responsibility codes to

guarantee progress is being made in the social responsibility aspect.

The company goes above and beyond government regulations by placing moderation

statements in consumer advertising. In fact, Bacardi USA was a founding member of the

Distilled Spirits Council of the United States, which has set the standards for alcohol advertising

in the US. Bacardi also aims to be the industry leader in all respects tied to the environment and

worldwide production.

Regarding the “pyramid of social responsibility”, Bacardi has a strong base. That is,

Bacardi is very profitable and strives to provide premium products to a global market. The

company is very responsible in a legal sense. It goes above and beyond government regulation

and even helps to produce new legislature, as discussed earlier. The company appears to operate

ethically. It has a strong sense of values that it tries to convey to its consumers. Even in its

founding days, Bacardi opposed Castro on the grounds that he was acting unethically. Barcardi

Limited is not a very philanthropic company. It does not set up scholarship programs or give

away cruises. But, the Bacardi family does donate millions of dollars to help build houses for

homeless Cuban families. This project is called Casa Bacardi(6).

VI. Summary
Bacardi is a very powerful distilled beverage firm, and it takes its leadership

responsibilities seriously. It is a very profitable organization with a very broad product line, and

its investors are very successful business people. It works to promote the safe enjoyment of its

product and uses appropriate marketing schemes to contribute to alcohol abuse prevention. The

firm also is an active participant in the legislative process and helps to author and enact law

6
"Bacardi Limited: About Us." Bacardi Limited. 2007. Bacardi Limited. 25 Nov 2007
<http://www.bacardilimited.com/?#page=home>.

4
regarding the production, marketing, and sales of alcohol. Bacardi is not a philanthropic

organization, though it does its part in contributing to communities, especially in Cuba where it

was founded. Bacardi would be an excellent firm for an international business student to work

for, as it has branches for nearly all extensions of the globe. Since Bacardi Limited appears to

always be expanding its product line and marketing technology, it would also be a wise choice to

invest in. Over the years, Bacardi has lived up to the name of its original brand of rum

“Superior”.

Bibliography

"Bacardi Limited: About Us." Bacardi Limited. 2007. Bacardi Limited. 25 Nov 2007

<http://www.bacardilimited.com/?#page=home>.

5
"Bacardi Limited Elects New Directors to Board;." Netherlands Corporate News 2006 25

November 2007

<http://www.netherlandscorporatenews.com/archive/en/2006/09/13/l012.htm>.

"Economics." Discus.org. 2007. Distilled Spirits Council of the United States . 25 Nov 2007

<http://www.discus.org/economics/>.

"Guy Peyrelongue, President & CEO of L'Oreal USA Promoted to Rank of 'Officier' by the Prestigious French

Legion of Honor." Business Line 03/06/2001 25 November 2007 <http://www.encyclopedia.com/doc/1G1-

71260973.html>.

Plotkin, Robert. "Adams Market Research Alcohol Beverage Industry." 2006. Adams Beverage Group. 25 Nov 2007

<http://www.adamsbevgroup.com/sw/2005/0505_stw/0505vdk.asp>.