Bacardi faced challenges when the US enacted Prohibition in the 1920s, banning alcohol. Rather than seeing Prohibition as daunting, Bacardi reacted with an unusual strategy of advertising Cuba as a tourist destination to drink Bacardi rum, and expanded into producing beer and deepening ties in Mexico during this time. They were able to continue courting the US market and expand their business despite Prohibition through creative advertising and diversifying their products and markets.

1. Bacardi History: Opportunity During ProhibitionBacardi History: Opportunity During Prohibition

2. •Over the course of more than 150 years, Bacardi has
overcome challenges to achieve success both inside and
outside of its original home in Cuba. The family business
faced a major hurdle in the 1920s when the United States
enacted the Prohibition that banned the sale, manufacture,
and consumption of alcohol. While Bacardi has built its
reputation on delivering top-notch spirits from Cuba to the
United States, it did not find the situation daunting.

3. •Instead, Bacardi reacted with an unusual strategy. Forced
to shutter its U.S. operations in this challenging business
environment but still interested in courting the U.S. market, it
began advertising Cuba as a tourist destination and its rum
as a prime reason to travel there. A major international
airline began to publicize the availability of Bacardi rum in
Havana. It was also instrumental in opening an elegant,
high-class bar in one of the first skyscrapers in Cuba.
Bacardi even expanded during the Prohibition. It began to
produce Hatuey beer in 1927 and deepened its ties to
Mexico in 1931.