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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 Rumtrade, 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 companyis held privately, it is the only alcohol producer to own a tanker for oversea transport, just oneindicator of how large and successful the company is.The purpose of this report is to analyze what makes Bacardi Limited tick. It will includea description of the structure of the company, the mission statement, the company’s code of ethics, and its steps toward social responsibility.

II.

Company Overview

The distilled beverage industry is international, because in most non-Muslim countriesenjoy alcoholic beverages. Alcohol companies work very hard to develop brand loyalty in thecostumers, 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(

). UScompanies have been forced to include socially responsible messages about drinking responsibly,in order to combat underage consumption and alcoholism. In 2004, US alcohol companiescontributed $350 billion to the GDP(

).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

lotkin, Robert. "Adams Market Research Alcohol Beverage Industry." 2006. Adams Beverage Group. 25 Nov2007 <http://www.adamsbevgroup.com/sw/2005/0505_stw/0505vdk.asp>.

"Economics." Discus.org. 2007. Distilled Spirits Council of the United States . 25 Nov 2007<http://www.discus.org/economics/>.

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 ExecutiveOfficer 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 isfrom Bremen, Germany. The other major investors are listed on the Barcardi Limited websiteunder 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 TheEstee Lauder Companies Inc., and Toten Comas, who originally started as a rum blender for theBacardi plant in Nassau(

).The C.E.O of Bacardi International Limited and Global Treasurer of Barcardi Limited isMichael Brennan. His background is in international accounting, and he has been with Bacardifor seven years(4). The Executive Management Team is comprised of the stereotypicalgentlemen. There is one man who is not white, and there are two women on the team. This teamis where the Presidents of different regions come together, and it reports to the Board of

"Guy Peyrelongue, President & CEO of L'Oreal USA Promoted to Rank of 'Officier' by the Prestigious FrenchLegion of Honor.." Business Line 03/06/2001 25 November 2007 <http://www.encyclopedia.com/doc/1G1-71260973.html>.

"Bacardi Limited Elects New Directors to Board;." Netherlands Corporate News 2006 25November 2007<http://www.netherlandscorporatenews.com/archive/en/2006/09/13/l012.htm>.

Directors.

III. Code of Ethics

Bacardi lumps together social responsibility and ethics. Its ethics statement can be foundon 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 dangerousactivity while drinking, including driving, and not to market the alcohol as medicinal. Thismission was declared in 2004 and is the result of legislation that is aimed at stopping marketingtoward 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 providesonline cooking demonstrations to show that alcohol can be used for more functions than gettingdrunk. It is clear that drunken behavior is a concern for Bacardi(

IV.Mission Statement

Bacardi’s Mission is to “distribute its expanding portfolio of international brands to tradeclients and consumers around the world”, to “discourage abusive consumption of our brands andto urge consumers who choose to drink to do so responsibly”. This mission statement isavailable at the Bacardi Limited website(5). As it is a major producer of distilled liquors, thegoals of the company seem logical: to expand the sales of the products internationally is the goalof 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 spendstime and money on programs to restrict itself and other liquor companies in marketing tounderage buyers and in combating dangerous drunken behaviors.

V. Social Responsibility

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

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