Business Wars

In 1931, the massive Hoover Dam project brings thousands of workers to Nevada. They have paychecks and nowhere to spend them. The state legalizes gambling, setting a small, dusty town called Las Vegas on its way to becoming an unsurpassed phenomenon.

The mob realizes there are untold riches to be made in gaming, and by the late 1940s, gangsters Meyer Lansky and Benjamin Siegel are opening casinos on the fledgling Strip.

For the mob, the situation is a dream come true. Gambling is legal, prostitution is ignored, and local politicians are either for sale or agreeable. And best of all, there’s virtually no competition.

But that won’t last.

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It's the '70s and best buddies Ben Cohen and Jerry Greenfield are about to open an ice cream parlor. These hungry hippies only want to have fun making ice cream. But as their business grows, they're going to find themselves on a collision course with the heavyweight champ of gourmet ice cream: Häagen-Dazs.

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For Cubans, rum is more than just a drink. It's become a symbol of identity, culture and politics, and each bottle has a lot to say — especially when it's labeled "Havana Club." 

As Bacardi and Pernod Ricard battle it out in court to determine the true owner of this traditional Cuban liquor brand, there is a larger cultural and geopolitical conversation unfolding. 

To dive into this discussion, we spoke to Professor Lillian Guerra, a Cuban-American historian and Director of the Cuba Program at the University of Florida. She talks about Cuban economics, culture and policy as they relate to Bacardi, Pernod Ricard and Havana Club — and she's revealing her take on who has the real stuff.

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Pernod Ricard believes it’s just a matter of time before Cuba’s embargo is dropped. It dramatically expands its distilleries in Cuba for the moment when it can delug the US market with its Havanista rum. But politics will make this anything but a straight shot.

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Bacardi manages to best Pernod Ricard by using both the courts and Capitol Hill to keep the embargo in place against Pernod Ricard’s rum of the same name, Havana Club. But as relations between the U.S. and Cuba warm, negotiations between Havana and Washington begin. On Castro’s wish list: the right to sell its Havana Club in the U.S.

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Bacardi has one-upped Pernod Ricard by deploying a U.S. trade embargo to block imports of Pernod Ricard and Cuba’s rum. So Castro announces that Cuba will make copycat products of American companies, ignoring their U.S. trademarks.

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Bacardi is now America’s favorite rum, but two former French spirits rivals -- Ricard and Pernod -- have joined forces to challenge Bacardi. And to gain the upper hand in security rights to Havana Club, the French company turns to Bacardi’s arch enemy for help: Fidel Castro.

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Before they were billion-dollar behemoths owning many of today’s biggest booze brands, Bacardi and Pernod Ricard were three tiny, family-run companies. Pernod makes absinthe so well it became synonymous with the substance that causes a frenzy in Europe before being banned. Ricard steps in with an absinthe substitute and causes its own craze before merging with Pernod. Meanwhile, Bacardi gets enormously rich and fantastically famous at an odd time for a distiller — Prohibition. All that success, though, puts both companies on a collision course over a Cuban-made rum called Havana Club. 

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When family-run rum maker Bacardi was kicked out of Cuba in 1960, it vowed to go to extremes to get revenge on Fidel Castro. So when French spirits conglomerate Pernod Ricard cuts a deal with Castro’s government to share in the fortunes of Cuban-made Havana Club rum, Bacardi declares war on Pernod Ricard, too.

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Thanks to deregulation, no-frills knock offs of Southwest take to the skies like crows. About 120 airlines have gone out of business or filed for bankruptcy since the industry was deregulated in 1978.

American’s SABRE system optimizes...everything. It manages ticket pricing so flights are always full, and American is building new hubs and terminals. Meanwhile, Southwest company culture is shifting from sex appeal to backyard barbecue vibe. Is it enough to attract families to fly?

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