Melchers Distilleries Limited

Melchers Distilleries Limited, along with its predecessor, The Melchers Gin and Spirits Distillery Company, operated a distillery just north of Montreal, in Berthierville, Quebec, Canada, from 1898 to 1977.

The business grew out of a relationship between a Dutch distiller named Theodore Melchers and a Canadian businessman and later politician named Joseph Marcelin Wilson. According to Theodore Melchers’ obituary, found in the January 9, 1922 edition of the “Montreal Star,” in the late 1800’s he was the senior partner of the firm of  J. J. Melchers of Schiedham, Holland. Gin distillers and exporters, the firm was founded by his grandfather in the early 1800’s.

In the meantime, as early as 1889, J. M. Wilson was partnered with B. J. Boivin in the Montreal based wholesale grocery business of Boivin, Wilson & Co.

In 1898 Wilson, Boivin and Melchers got together and established the Canadian business of the “Melchers’ Gin and Spirits Distilling Company Limited.” Wilson, Boivin, and Theodore’s son Jean (also called J. J.) were named as “First or Provincial Directors” in the company’s August 6, 1898 incorporation notice.

The incorporation notice went on to describe the company’s objectives.

(a.)  To carry on business as distillers, malters, etc., in and to extend the same to any and all of the provinces of the Dominion of Canada, the manufacturing, distilling, rectifying, aging, buying, selling and dealing in all kinds of spiritous and alcoholic liquors, and malting; (b.) So far as necessary for the purpose of carrying on to advantage and without waste the business described in clause (a.), to carry on the business of stock raisers and cattle feeders, the operations of the company to be carried on at Berthier, in the province of Quebec, and elsewhere throughout the Dominion of Canada.

The company immediately went about establishing their Berthierville distillery with much of the distilling equipment being brought over from Holland, and within a year the distillery was up and running under the Melchers name, as evidenced by this February 21, 1899 “Montreal Star” item advertising “A COMPRESSED YEAST” to local bakers.

This early 20th Century depiction of the distillery appeared in an October 13, 1911 advertisement published in Toronto’s “Globe and Mail.”

According to Theodore Melchers’ obituary, his son Jean would go on to serve as the distillery’s managing director for over 20 years.

In the Spring of 1900, the first shipment of Melchers Canadian made gin called “Red Cross” hit the market. Flavored with juniper berries it was sometimes referred to as a  “Holland” or “Geneva” gin.  The “roll-out” was described in the June 18, 1901 edition of the “Montreal Star.”

Another Big Shipment of Melchers Canadian Geneva

On June 10th last, the Melchers Gin Distillery, of Berthierville, has once more supplied the liquor trade with several thousand cases and hundreds of casks of the now celebrated “Red Cross” Canadian Geneva.

The first shipment that was made last April was met with unprecedented enthusiasm by the trade. In fact, the wholesale dealer did not even have time to warehouse the Gin as it was all sold in advance to retailers who had great trouble to find enough “Red Cross” Geneva to supply the always increasing demand for that superior liquor.

Now, the same rush, the same boom, was repeated with last week’s shipment and it seems as it will keep up until the Berthierville’s Distillery’s capacity has been increased, which of course, must be done in the near future…

That summer advertisements specifically touting the company’s “Red Cross” Geneva began appearing in Canadian newspapers. One of the earliest appeared in the July 17, 1901 edition of the “Montreal Gazette.” The advertisement clearly identifies Boivin Wilson & Co. as their distributing agent.

The following year another series of newspaper advertisements featured their Berthierville Distillery, an image that soon began appearing on their label.

The hype described in the June 18, 1901 “Montreal Star” item certainly had a lot of  truth to it as evidenced by the fact that in 1903 the company increased its capital ten fold, from $100,000 to $1,000,000. The announcement appeared in the July 25th edition of Toronto’s “Globe and Mail.”

Over the next ten years, the name  “Red Cross” became intimately associated with their gin due in no small part to the $500,000 the company invested in promoting and maintaining the brand. In spite of that fact, in November, 1914 the company announced it was changing the gin’s name to “Gold Cross.”

The reasoning behind the change was directly related to the humanitarian role of the “Red Cross Society” during World War I. A November 2, 1914 announcement in the “St. John Standard” spelled it out like this:

The ambulance systems of the world met at Geneva, in Switzerland, in 1864 – exactly 50 years ago – and adopted a flag with a Red Cross on a White Ground as the neutral flag of all nations, a protection to the sick and wounded from harm and a protection also to all persons engaged in the work of caring for those sufferers.

In this present European conflict it has gained greater importance than ever since men knew war. It has become so important that we are compelled to realize that only nations themselves should be allowed to use the RED CROSS emblem.

At the insistence of the Imperial and Canadian Governments, who like all other nations, have concluded to keep the name “RED CROSS” for national use, we have decided to relinquish “RED CROSS” as the name of our GIN.

We feel, in giving up the name “RED CROSS” to the use of the British Government, and to all humanity, that we are only following a patriotic course. The great and noble work of the Red Cross Society shall not suffer if we can help it.

True to their word, January advertisements began using the “GOLD CROSS” name as evidenced by this January 26, 1915 “Toronto Star” advertisement.

It was around this time that, according to a story in the December 17, 1928 edition of the “Montreal Star,” ownership of the business began transitioning to the Fleischmann Company; a transition that would be complete by 1920.

About 1913 The Fleischmann Co., following certain agreements with reference to the production of yeast, purchased an interest in Melchers Distillery Ltd. and in 1920 they acquired Senator Wilson’s interest and assumed control…

Between 1920 and 1928, the Melchers Gin & Spirits Distillery Company operated as a wholly owned subsidiary of the Fleischmann Company, with the Berthierville distillery facilitating Fleischmann’s Canadian production of yeast. At the same time the distillery also continued to produce their “Gold Cross” gin, as evidenced by this 1926 newspaper advertisement that was published in both English and French speaking newspapers.

In 1928, the Fleischmann Company decided to focus entirely on yeast production in Canada and consequently sold their Canadian liquor business to a newly formed corporation called Melchers Distilleries Limited. The Fleischmann Company’s entry in the 1929 “Moody’s Manual of Investments” provided some details.

Site has been acquired at La Salle (near Montreal), Quebec, on which a modern yeast plant will be constructed in 1929. With the sale of Melchers Distillery Co., Ltd. stock in Dec., 1928 to Melchers Distilleries, Ltd. (effective as of Oct. 31, 1928), Fleischmann Co. (Ohio) ceased to carry on any business in gin and spirits in the Dominion of Canada, which business was formerly handled by this subsidiary. However, contract was entered into with the Melchers Distilleries Ltd. under which they will continue to manufacture yeast at the Berthierville plant, until completion of yeast plant for that purpose.

The newly incorporated Melchers Distilleries Ltd. was also listed that year in “Moody’s.”

MELCHERS DISTILLERIES, LTD.: Incorporated in Dec. 10, 1928, under the laws of the Province of  Quebec to acquire the plants and properties (except certain machinery now used in the manufacture of molasses yeast) the stocks of matured and maturing spirits, good will and trademarks of the Melchers Distillery Co., Ltd., at Berthierville, Que.

The listing went on to describe the Berthierville facilities at the time..

The properties acquired comprise 82 acres of land at Berthierville, Que., and facilities for water shipments via the St. Lawrence River. The distilling plant has a production capacity of approximately 2,000,ooo gallons per annum…

The president of the new company was a long-time employee named Joseph Victor Marchand.

According to a December 17, 1928 story found in the “Montreal Star:”

Victor Marchand, M.L.A., president of the new company, has been associated with the Melchers organization since its inception, first as an accountant and later as secretary and general manager.

The story went on to say that as the 1920’s were coming to an end the company’s product line was expanding beyond just “Gold Cross” gin.

… The company has shown a steady expansion since its foundation, and, in addition to its Holland gin which has been by way of becoming the national drink of the French-Canadian people, has recently been producing also American Rye and Bourbon and industrial and grain alcohols. Mr. Marchand expects to commence in the near future the distilling of Dry and Old Tom gins, etc. At the present time the company its the only manufacturer in Canada of Holland Gin.

One of the first in Melchers expanded menu was called “London Club” dry gin whose appearance on the market was announced in a July 26, 1929 item published in Toronto’s “National Post.”

Melchers  new London Club dry gin will be placed on the market within a few days. This is the latest product of Melchers Distilleries which was publicly financed in December of last year. This new product has been developed over the past few months and will be ready for market this week.

This advertisement for the newly minted brand appeared a month later in the August 22, 1929 edition of the “Montreal Star.”

By 1930, advertisements for an American rye called “Old Keg”also began appearing in the Canadian newspapers.

This in no way implies that their “Gold Cross” gin was in any way  forgotten, as evidenced by this Christmas advertisement published in the  “Montreal Star” on December 13, 1933.

As late as 1941, “Gold Cross” remained prominent in Melchers Distilleries’ advertisements with this December 29th “Montreal Star” ad touting it along with their “London Club” gin and another Melchers product,  “Three Castles” whisky.

The following year World War II changed things when on November 1, 1942 the entire alcohol production of distilleries in Canada was diverted to war purposes. At that time the Berthierville plant engaged in a large war contract for the manufacture of commercial alcohol. The company was still engaged in that effort in 1945 when they ran this advertisement in the January 25th edition of the “Montreal Star.”

It reads:

Tonight, brave men still face death…on the battlefield.

It is unlikely that we in Canada will be called upon to match their sacrifice…but the least we can do is to continue, in every way possible, to keep the supplies and equipment rolling out. We, Melchers Distilleries Limited, manufacture a precious war material of a thousand uses…war alcohol. It is a vital ingredient of the explosives used in the grenades, shells, bombs, depth charges and mines that are thundering and battering the enemy to destruction…an important substance in de-icing fluid for our planes, in medicines for our sick and wounded, in war paints and lacquers, and in many other applications, some of which are still on the secret list.

It is needed in great quantities…and until victory is won, our plant and facilities will remain at the disposal of the Dominion Government in the manufacture of alcohol for war!

After the war Melchers began producing their “Gold Cross” gin again, as evidenced by this October, 1951  advertisement that appeared in several editions of the “Montreal Gazette.”

At the same time they were also advertising a wide array of other brands some of which were pre-war  holdovers while others had been recently introduced. A little of both appear in this March 22, 1951 “Vancouver Sun” advertisement.

As far as I can tell, over the next two decades the company did quite well, issuing stock dividends in most years before peaking in late 1969. That year, according to Toronto’s “Globe and Mail:”

Melchers Distilleries Ltd. of Montreal had record sales of $9,351,500, excluding excise and sales taxes, in the 12 months to August 31. A year earlier sales totaled $6,138,900. Profit increased to $643,644, or 43 cents a share from $514,738 or 38 cents a share in 1968.

The story went on to say:

An additional $6-million investment in the company’s plant at Berthierville, Que., increased its distilling capacity by 90 percent to 7,500,000 gallons annually. Work is advanced on a new automatic filling operation capable of handling increased output at the Berthierville plant.

Around the same time, according to an April 29, 1970 “Globe and Mail” story:

Melchers merged with Manitoba Distillery Ltd. in an agreement ratified on Jan. 17, 1969, and the $2.5-million Manitoba Distillery plant, 25 miles north of Brandon, became a wholly owned subsidiary of Melchers. The expansion program estimated at $1.5-million included a bottling section, warehouse and offices.

 It was these investments, coupled with changing market conditions, that contributed to a subsequent downturn in the company’s profitability. According to a story in Saskatchewan’s “Leader Post:”

…Melcher’s financial problems originated in the early 1970’s. Depending on liquor market forecasts which never materialized, the Montreal-based firm invested heavily to expand its Berthierville, Que. plant and purchased a distillery, near Minnedosa… It also put between five million and six million gallons of spirits into storage for aging.

Particularly harmful to Melchers was a shrinking and depressed market for Canadian whisky in the United States, which absorbs about 75 percent of Canada’s hard liquor production.

The Manitoba plant was ultimately shut down in late 1973 and three years later, the March 19, 1976 edition of  the “Globe and Mail” reported that the company lost $2.8-million in their most recent fiscal year, the third consecutive year the company had reported a loss.

A year later, the March 14, 1977 edition of the “Toronto Star” announced that the company had filed for bankruptcy after a potential sale of the Manitoba plant fell through..

Melchers Distilleries Ltd., a 79 year-old Quebec firm that produces Ron Cabana rum and other brands of liquor, is bankrupt following the collapse of a deal to sell its Manitoba plant for $2.5 million.

Trading of Melchers’ common shares on the Toronto and Montreal exchanges has been halted since last Wednesday night, when the stock closed at $2.66, down from a peak of almost $30 in 1970…

Melchers has about 160 employees, 122 of whom work at the main distillery at Berthierville, Que. The company’s other plant, at Minedosa, Man., has been closed since the end of 1973 and was to have been sold to a group of Manitoba businessman in a deal announced in January.

Melchers disclosed early this month that the sale had fallen through. It said today it had been “negotiating a financial restructuring of the company” when it found it couldn’t pay its bills.

Later that year, the December 15, 1977 edition of the “Montreal Star” announced that a consortium called Melcan Distilleries Ltd. had been formed to acquire the Melchers company assets.

Melcan Distilleries Ltd., a company owned by five distilling companies has succeeded in acquiring the assets of bankrupt Melchers Distilleries…

Melcan was set up specifically to buy the assets of Melchers. Its shareholders are Calvert of Canada, Corby Distillers, John de Kuyper and Son and Meagher’s Distilleries, which own the voting shares. In addition, non-voting shares are owned by the American Distilling Company, of New York…

Melcan will hire most of the workers and executives formerly employed by Melchers and will sell the Melchers line of products, including gins, whiskies, imported wines and spirits…

Seven years later, on December 1, 1984, the “Montreal Gazette” announced that Seagram & Sons, who had apparently bought into the consortium at a later date, was acquiring Melcan Distilleries Ltd.

Seagram & Sons announced Friday that it has reached a “tentative agreement” to buy all the shares of Melcan that it doesn’t already own from its partners in a seven-year-old consortium…

The companies purchased Melchers Distilleries Ltd. out of bankruptcy and renamed it Melcan. Now they seem to have decided that it is too clumsy for a consortium of competitors to continue operating Melcan, said Harold Wolkin, an analyst with Nesbit Thomson Bongard Inc.

Seagrams immediately announced they were closing the Berthierville plant and less than a year later, a November 25, 1985 story in the “Montreal Gazette” made it clear that the plant that had continuously operated as a distillery for 8o+ years had become a pile of rubble.

The brick smokestack will topple soon and the cream-colored portico now welcomes you to the rubble of Melchers Distilleries Inc.

Five months after Berthierville’s main industry closed its doors, throwing 98 people out of work, a bulldozer has smashed down the walls of the century-old factory. Stills and motors are strewn about. A 30-man demolition crew has begun sorting copper, steel and aluminum for resale to scrap dealers…

Robert Lafleur and his crew moved in two weeks ago and began tearing down the main distillery. Most of the work will be completed by mid-December but Lafleur said the ground won’t be cleared and the wreckage removed until May.

Lafleur’s job also includes liquidating most of Melcher’s machinery and office equipment.

Seagram’s kept its bottling machines and scores of barrels used to hold the distilled liquor. But Lafleur is placing ads in newspapers from Ottawa to New York advertising old stills and grain processors

One of Lafleur’s advertisements can be found in the November 9, 1985 edition of the “Montreal Gazette.”

The subject bottle is a 16-ounce, machine-made, slightly curved flask with “Melchers Distilleries Limited” embossed on one side. Recognizing that “Melchers Distilleries Limited” was incorporated in December, 1928, it certainly dates no earlier than that.

The bottle generally  exhibits a rough finish with the unembossed side exhibiting a rectangular area that’s smoothed out to accommodate a paper label.

The bottle matches exactly the “Old Keg” whisky flask pictured in this August 25, 1930 advertisement found in the “Montreal Star,” sans the label and “handy two-ounce “NIP-CUP” that are both long gone.

The bottle does NOT exhibit the embossed phase

Federal Law Forbids  Sale or Reuse of this Bottle

required on all liquor bottles sold in the U. S.between 1935 and 1964. This suggests it likely found its way to the Long Island bays during the latter stages of National Prohibition.