Today’s Chapter is based on the book “Samuel Bronfman: The Life and Times of Seagram’s Mr. Sam” by Michael R. Marrus.
Samuel Bronfman was a Canadian wealthy businessman, best known for founding the Distillers Corporation Limited and for acquiring the Seagram Company, which became the world's largest liquor distilling firm.
Here’s what I learned:
Obsession on Quality
“I want to repeat that it is our goal to be the best, but not necessarily the biggest, contracting organization on earth.”
— Peter Kiewit
Quality is deeply woven into the fabric of Samuel Bronfman’s business philosophy. His insistence on excellence not only defined Seagram’s products but also differentiated the brand in a crowded marketplace. In fact, in an industry often characterized by shortcuts and compromises, Samuel Bronfman stood out for his unwavering commitment to quality. As Michael Marrus explains, "In a business environment where critics suggested that corners were always being cut, Sam was a fanatic for quality and took the most extraordinary care to see that his products were always 'the best.'"
For Bronfman, quality was not just a feature of his products but a core principle that guided every aspect of his business. He believed that excellence was the key to building a lasting legacy and earning the trust of consumers. This commitment to quality became a hallmark of Seagram's reputation, enabling the brand to withstand the test of time. As Bronfman once said, “Distilling is a science; blending is an art.”
To make sure that every bottle of whisky produced met his standards, he personally oversaw the production process, paying attention to every detail, from the selection of grains to the bottling techniques. This is especially fascinating considering the fact that Bronfman started in the whisky industry without any expertise in making whisky. As Bronfman once said when asked what he knew about the whisky industry, “I don’t know the first goddamn thing about how to make whisky, but I’ll be goddamned if I’m not going to learn.”
As a matter of fact, Bronfman believed it was probably even better for him that he started from scratch in this industry as he could now learn everything from the best in the industry with little to unlearn. As he explains, “It was probably the best thing for me that I didn’t know anything about [distilling]. I lived at the distillery for two years. The same as you hire a cook for a hotel, you hire a man to run a distillery. I learnt that way. I learnt everything I could to make sure we made good whisky.”
“I paid personal attention to every aspect of the production process, to grains, water and yeasts, to milling, to cooking procedures and temperatures, to fermenters, to stills and distilling techniques, to barrels used for maturing whisky, to packaging and bottling.”
— Sam Bronfman
Bronfman’s ethos was rooted in the belief that quality was not just a business strategy, but a fundamental principle that underpinned the success of any venture. He was well-known for urging his team to strive for constant improvement by mentioning that “The best whisky has yet to be made.” In fact, he believed that by prioritizing quality, he could cultivate a brand that became synonymous with excellence in the liquor industry. His focus on creating premium products established a loyal customer base and enhanced the overall reputation of Seagram. As he once said, “You need courage, brains and you need to work very, very hard – and you need to make your product better than anyone else – to succeed.”
"Quality in the bottle, and our reputation for quality, were much more important to me than immediate profits."
— Sam Bronfman
This obsession over quality in order to be the best reminds me of how Peter Kiewit built the Kiewit Corporation into one of the best construction company in the world. While he didn’t care if Kiewit was the biggest company, he made sure to build it into the best contractor company. In fact, If given the choice, he would rather be the best rather than the biggest. In order to do so, Kiewit was continuously seeking in building work at the lowest cost by continually improving the company’s operation.
“I want to repeat that it is our goal to be the best, but not necessarily the biggest, contracting organization on earth. The dinosaur that roamed this Great Plains area some 160 million years ago is the biggest land animal that ever lived. Dinosaurs were 90 feet long and weighed over 40 tons. But being the biggest animal didn't do much for the dinosaur. They became extinct long before their smaller and more efficient competitors.”
— Peter Kiewit
Similarly to Samuel Bronfman, Kiewit was also very hands-on in order to assure the quality of his company’s services. In Peter Kiewit’s case, he was actively involved in the operations to make sure that the company was completing projects at a low cost and in a efficient manner. This was the path in becoming the best contractor company.
First, Kiewit created a cost-monitoring system that allowed him to evaluate the company’s weekly performance on each job. He would also require his foremen to submit a record of costs so that he could compare with its original estimates.
Second, Kiewit kept close eye in the progress of the company’s projects. While he was demanding to his employees, he was never afraid to roll up his sleeves and to help out personally. For example, he once spent two hours working with a young engineer trying every possible combination of laborers and equipment to see if the unloading of boxes could be done in a more efficient manner. At the end, they were able to find a way to perform the operation with 10 workers instead of 11.
In another example, he spent two hours with a young engineer in a not very important operation. However, for Kiewit, he was always looking for a way to improve the company’s operation no matter how small and minimal the impact was.
"If we do the 'big' job well, and at the same time keep our other work running efficiently, we will be one step nearer our goal, which is and always has been, to be the best contracting organization on earth.”
— Peter Kiewit
Take Advantage of Opportunities
“In business, you must grasp opportunities.”
— Lui Che-woo
Samuel Bronfman’s success as a businessman is a testament to his power of entrepreneurship and innovation. From his early days, he demonstrated a keen eye for opportunity. As a matter of fact, his entrepreneurial journey began not in the glamorous world of distilleries and boardrooms, but in the small towns of Manitoba, where necessity and ingenuity were the driving forces. From selling discarded wood and braving harsh winters to trade frozen fish, young Bronfman displayed a remarkable knack for identifying opportunities and capitalizing on them. This early exposure to the challenges and rewards of entrepreneurship laid the foundation of his future endeavours.
One pivotal moment in Bronfman’s entrepreneurial career occurred during the Prohibition era in the United States. He recognized an opportunity in the medicinal loopholes of liquor sales, enabling him to pivot from hotel management to liquor distribution. Marrus explains, "Undaunted by Dominion-wide prohibition, Sam discovered a loophole in the legislation. According to what he learned at Boivin, Wilson, it was perfectly legal in Saskatchewan for druggists to import large quantities of liquor to sell 'for medicinal purposes.' Sam immediately picked up the phone and called Harry."
Bronfman, due to his keen eye for opportunity, quickly recognized the vulnerability of his family’s hotel businesses that relied on alcohol sales and decided to shift his focus entirely to liquor. As he explained, “Winnipeg was about to become bone dry. I’ve got to earn a living. The hotel’s not worth a damn.”
Furthermore, Bronfman’s entrepreneurial spirit was characterized by a relentless drive to seize opportunities, often in unconventional ways. For instance, he adapted a marketing strategy akin to mail-order houses, which was a revolutionary concept at the time.
"Many years later, when running a giant corporation, Sam liked to stress two key dimensions of his business that were an echo of his time as a mail-order salesman. The first was packaging—a critical concern at the Bonaventure Liquor Store, to ensure that bottles of Dewar's, Black and White or local rye would reach their customers without breaking. The second was consumer trust—an element essential to mailorder houses, where customers sent money with their orders, confident that the goods would arrive by return post."
— Michael R. Marrus
Through calculated risks and a keen understanding of market dynamics, Bronfman not only built a successful business but also transformed the perception of liquor sales in Canada. As a matter of fact, one of Bronfman’s key strategies was to elevate the image of whisky as a luxury product. He sought to distance Seagram from the rough-and-tumble reputation of the liquor industry, instead positioning it as a symbol of refinement and sophistication. Marrus explains, “Unhappy with the image of whisky being gulped by poor people in grimy bars, Sam wanted to portray it ‘being sipped in the quiet dignity of a London men’s club by cultured gentlemen.’”
This is the main reason why he believed in providing quality products to his customers as it would increase the business’ prestige. As Marrus explains, “Quality, in Sam’s mind, was intertwined with prestige” and as Sam Bronfman once wrote to the company’s shareholders in 1938, “The selling power of prestige has always been and continues to be the basic idea behind all of your Company’s advertising.” His ventures laid the groundwork for what would become Seagram's, one of the most recognized names in the beverage world. Not bad for someone that entered the liquor industry without any expertise!
This concept of exploiting opportunities reminds me of the story of Lui Che-woo, the self-made billionaire who founded the Galaxy Entertainment Group. Lui Che-woo explains that when doing business, it is essential to not let any opportunity slip, especially when you believe it is profitable and when you have the resources available to make it work. He famously said that “in business, you must grasp opportunities.”
This concept of exploiting opportunities can be better illustrated by Lui’s experience at a car-parts shop. As mentioned above, as a keen observer, he was able to understand the reasons why a product would be in high demand and why another one is not wanted.
His ability to use thought experiments by asking himself “What would I do if I were the boss?”, allowed Lui to be ready when the right opportunity would come to him. As such, when the car-parts shop reached its end, Lui quickly proposed to purchase the company from the owner for a mere sum of HK$80,000. With no other options available, the owner had no choice but to sell it to Lui.
“When opportunities emerge, you must hit the bull’s eye by leaving no stone unturned.”
— Lui Che-woo
Lui Che-woo mentions that the formula for success is that “one must prepare well and pay attention to details. When opportunities arise, one’s preparation will pay off.” As mentioned above, keen observation skills were one of the key to Lui’s success. However, any information you learn through observation is only useful when you act on them. Insights obtained by observation are only considered an advantage if you take action.
As Charlie Munger once said, "One should be ready to pounce when the opportunity presents itself, because in this world opportunities just don’t last very long. You should remember that good ideas are rare— when the odds are greatly in your favor, bet heavily.”
Another example of Lui’s being opportunistic was when he started building hotels in America. While there were some uncertainties, Lui decided to build a hotel in the heart of Silicon Valley due to his forward-thinking. He quickly understood that an opportunity to build a hotel in such a good location does not come often. As he explained to his son later on, “opportunities were hard to come by, so one should grab them even though the conditions may not be perfect.”
Family
“Our credo is that we're not a family business — we're a family in business”
— Leonard Lauder
For Samuel Bronfman, business and family were deeply intertwined. He built his empire with the help of his brothers and later passed on the reins to his children. In fact, Bronfman’s early years in business were marked by close collaboration with his brothers, with whom he shared a strong sense of loyalty and unity. As Marrus mentions, “As the Bronfman sons spread their wings in their hotel operations in southern Manitoba and Saskatchewan, the family nevertheless maintained its unity, with the parental home as headquarters of all family enterprises and a constant source of advice and assistance. Money, so far as one can tell, went into a single pool."
Bronfman’s leadership style was characterized by collaboration and mutual support. He recognized the strengths of his brothers and utilized their talents effectively. He relied heavily on his brothers delegating responsibilities and trusting their judgment. This was especially true when they were expanding their hotel operations all over Canada. As Marrus explained, "As soon as he set himself up in Montreal, Sam activated his family back in Winnipeg and deployed his brothers in a Napoleonic display of leadership and delegation of authority."
Furthermore, Bronfman was deeply committed to his family’s success. He often spoke of the importance of legacy, expressing concern about the future of the company beyond his children’s generation.
“Shirtsleeves to shirtsleeves in three generations. I’m worried about the third generation. Empires have come and gone.”
— Sam Bronfman
This fear of Bronfman to retain the wealth within the family reminds me of the story of Sam Walton, who was inspired by his father-in-law to include of all of his children as partners in Wal-Mart. By having a family partnership in place, his children participated in all the decisions concerning such as how much they paid to each other. More importantly, this family partnership ended up being a great strategy to reduce paying estate taxes as the transfer of ownership was done at an early stage. As Walton once said, “The best way to reduce paying estate taxes is to give your assets away before they appreciate”
Beyond the Book
Listen to "#116 Sam Bronfman (Seagram's and the Bronfman family dynasty)" by Founders Podcast
Read "Explore Or Exploit? How To Choose New Opportunities" by Farnam Street
If you enjoy reading my newsletter, please consider becoming a paid subscriber. You’ll be able to keep this newsletter going! Here’s what you get when you upgrade:
Voting on polls: you’ll get to vote on who I should write about next.
Requesting biographies: you can request a biography for me to read and write about next.
Supporting my next book purchase: all payments received will be used to purchase a new biography.