International conflict: Havana Club rum tears 3 countries apart
In the world of spirits, few names stir up as much passion and controversy as Havana Club . This iconic rum, born under the Cuban sun, is now at the heart of an international legal imbroglio involving three nations: Cuba, the United States and France. As spirits lovers and keen observers of the market, we are following with interest this saga that goes far beyond a simple trade dispute.
The Cuban Roots of an International Conflict
The history of Havana Club dates back to 1934, when the Arechabala family created this legendary brand. However, the Cuban Revolution of 1959 changed its destiny. The nationalizations that followed placed Havana Club under the control of the Cuban state, causing the exile of its founders. This is when a battle began that has lasted for more than six decades.
Today, two versions of Havana Club coexist on the world market:
- The rum produced in Cuba is the result of a joint venture between Cuba Ron and the French giant Pernod Ricard.
- The version marketed in the United States by Bacardi, heir to the Arechabala family
This duality perfectly illustrates the complexity of international relations and their impact on the spirits trade. As we observed in our analyses of trade tensions between France and the United States , the issues often go beyond the simple economic framework.
New US law rekindles tensions
On December 1, 2024, U.S. President Joe Biden signed into law the "Unrecognized Stolen Trademarks Act." The legislation, supported by lawmakers from both political parties, directly targets trademarks deemed "illegally confiscated" by the Cuban government after 1959.
For Havana Club, the implications are considerable. This law could jeopardize CubaExport’s renewal of its trademark registration in the United States in 2026. Bacardi, which already markets its own Havana Club on American soil, is pleased with this development. On the other hand, Pernod Ricard is expressing disappointment, fearing for its future rights on the American market if the embargo were to be lifted.
This situation is reminiscent of the challenges faced by other players in the wine world when trying to establish themselves in complex markets. The example of Penfolds' expansion in China illustrates well the risks and opportunities inherent in these international strategies.
A booming market
Despite these legal turbulences, the rum market is experiencing remarkable growth. According to a recent report from Research and Markets, the sector is expected to experience:
| Period | Average annual growth rate | Market value |
|---|---|---|
| 2024 | 7.7% | $19.1 billion |
| 2031 | $32.2 billion |
These impressive figures explain the fierceness of the fight around Havana Club. For the players involved, the stakes are high: ensuring a dominant position in a booming market. This dynamic is reminiscent of the consolidation movements that we observe in other segments of the alcoholic beverage sector, such as the recent acquisition of Duckhorn by Butterfly .
Future prospects for Havana Club
The future of Havana Club remains uncertain. On the one hand, Cuba and Pernod Ricard are defending their rights to the brand, with their presence in 125 countries. On the other, Bacardi, relying on the Arechabala family legacy, is consolidating its position in the United States.
As sommeliers passionate about the history and culture of spirits, we can only see the profound impact of this dispute on the very identity of Havana Club rum. Beyond the legal and commercial aspects, it is the very essence of an iconic product that is at stake.
Whatever the outcome of this conflict, one thing is certain: Havana Club will remain a symbol of the complexity of international relations in the world of spirits. For us, amateurs and professionals of the sector, this saga reminds us that behind each bottle sometimes hides a story full of twists and turns, worthy of the best adventure novels.
