Rum, Business and Society in Cuba, 1832-1965

Abstract

This article maintains the hypothesis that Cuba was able to become one of the world’s biggest rum producers thanks to the external economics provided by its social capital. In fact, Cuban rum producers had to face Spanish commercial tariffs first, and then those of the US. It was only thanks to the social and economic networks built by Catalonian producers in the industrial districts that they created that rum firms could reduce their costs and become competitive. Additionally, both commercial restrictions and high internal transaction costs pushed these firms toward greater horizontal and vertical integration. As a result of this process, in 1959 Havana Club and Bacardí were two of the most powerful beverage firms in the world. This study tries to identify the founders, origin, organization and strategies of great non-sug-ar Cuban companies which are not very well known in historiography.