A Hungarian Unicum

Today, many new companies come into existence through mergers or fusions. Often, competitors join forces in order to reduce costs and to create synergy effects. Against the common habit of creating companies exclusively for profit reasons those businesses driven by entrepreneurial enthusiasm and a strong belief in tradition deserve even more respect. Zwack Unicum Plc., based in Budapest, is one of these names. The history of the traditional family business is inseparably linked to the history of Hungary. Started off in the emperor’s times, the company survived two world wars and communism and is now a leading player in the global spirits industry. In the hands of the sixth family generation, the company sells more than 18 million litres of spirits every year to customers from across the globe. Still, the original product, the famous Zwack Unicum liqueur, is a bestseller of the portfolio and no one, apart from the family members, has ever managed to find out the traditional recipe.

Zwack Unicum is distilled from over 40 different herbs and spices from all over the world. It is, as the name promises, “unique” in taste. “Zwack Unicum is still distilled and fermented according to the traditional recipe which the Zwack family managed to keep secret,” says CEO Frank Odzuck. “The communists tried hard to find out the recipe but could not succeed. We are proud to share our history and memories but we do not share our recipes.”

In 2004, Unicum Next, a drink of the next generation, was launched. With respect to the original, Unicum Next is a variation of Zwack Unicum, targeting younger people. The herbs are mellowed by overtones of citrus fruit and the drink has already become a trend beverage among young Hungarians and young people from other countries, too. At present, Unicum Next one of the fastest growing brands in Hungary. Here, it is called Next, while abroad it is marketed under the name Zwack.

Quite recently, the Hungarian distillation expert launched Zwack Maximilian, a distillate of the finest Tokaj wines, originally created by Maximilian Zwack in 1912. This new highlight unites tradition and respect for quality with modern taste.

Vilmos is another unforgettable Hungarian experience from the house of Zwack Unicum. Tasting of ripe pears, it is ideal for mixing and a popular long drink with tonic and apple juice.

Fütyülős is a legendary eau de vie made of apricots. Among young trend setters, the drink is widely recognised as one of the most popular party drinks.

St. Hubertus, a delicious bittersweet liqueur made from herbs and orange, is another bestseller of the tasty product program.

Zwack Noble Palinkas encompasses a premium line of pure fruit eaux de vie and is distilled from sixteen different fruit, including mulberry, quince, blackberry, spicy pear, plum, raspberry, cherry, sour cherry, Tokaj rape marc and single strains of apricot. This drink has already won several prices at international competitions and fairs.

Last but not least, Zwack Kosher Palinkas is the leading brand in the Hungarian premium palinka market. Consisting of 100% pure fruit, the product family comprises plums, apricots, pears and wild cherries.

Needless to say, that all drinks are distilled and fermented at the company’s own facilities in Budapest and Kecskemet, Hungary.

In Tokaj, Hungary, the company also has its own winery producing award winning wines presenting the best Hungarian and international wines.

Zwack Unicum also distributes premium products of the DIAGEO concern, such as Johnnie Walker, Smirnoff, Baileys and Captain Morgan to name but a few. Today, DIAGEO is the world-leading distributor of spirits and liqueurs.

Following the socially responsible business approach of its ancestors, the Zwack company actively supports culture and sports. The Unicum concerts which are performed by the Budapest Festival Orchestra are a highlight of the national cultural year. Furthermore, Zwack Unicum sponsors the Opera Ball and the Hungarian water polo team which won three Olympic gold medals already.

The roots of the famous Zwack Unicum bitter date back to 1790. “Das ist ein Unicum” (“This is a unicum”), shouted Joseph II, Emperor of the German confederation, when his personal physician Dr. Zwack sedated him a self-developed medicinal herb liqueur against stomach pain. From then on, Unicum became a household name all over the Empire. Due to the increasing demand, the son of Dr. Zwack, Jozsef Zwack, established the first company in 1840. Ever since its beginnings, Unicum was sold in the original dark round bottle with a red cross in the middle. In the course of the decades, the colour of the cross was changed to golden. In 1886, Lajos Zwack, son of Jozsef Zwack, entered the family business and the company name was changed into J. Zwack and Partners. Paying tribute to the growing business, the company moved from its original production premises to its current facilities right on the banks of the beautiful Danube river in 1892. It was a great honour to the Zwack family when in 1895, the company was appointed “Sole Purveyors” to the Imperial and Royal Court of Emperor Frances Joseph and his wife, Empress Sissi. By this time, the Zwack enterprise had already become one of the leading distilleries in Central Europe, producing over 200 liqueurs and spirits which were exported all over the world. Under the management of Jozsef Zwack, a far-sighted and socially responsible entrepreneur who used to be called “The General” because of his dedication to work, the company already engaged in the use of natural fruit and spices. When Jozsef Zwack died at the age of 94 during World War I, his two sons Janos and Bela took on the business. Even during the years of the two World Wars the business flourished. Yet, when Budapest was bombed during World War II the factory was completely destroyed. By the time of restoration in 1948, the Zwack enterprise was confiscated by the State without compensation. Janos Zwack was expelled from the country. As the communists wanted to find out the recipe for the famous Unicum bitter, Bela Zwack was kept as pro-forma director. Yet, in 1955, he and his wife immigrated to Italy where they started to produce Unicum again. Peter Zwack, son of Janos Zwack, who spent his childhood in the USA, finally initiated legal action against the communists’ regime, so that they would not be allowed to use the name Unicum.

In the course of the political Wend in 1989/ 1990, the Zwack family redeemed its own company, together with the Underberg family. Peter Zwack returned home to continue the family tradition. In 1990, he was nominated Hungarian Ambassador to the United States by the first democratically elected Hungarian government since 1948. In 1994, he was elected member of the Hungarian Parliament. As the only independent M.P. he served for four years and spear-headed the anti-corruption crusade against black economy. He received many awards and decorations amongst which are the Hungarian Republic’s Cross of Merit, the Cross of Distinction for Loyalty to the Motherland by the World Federation of Hungarian Freedom Fighters, and he was made Cavaliere dell’ Ordine al Merito della Repubblica Italiana.

When Hungary joined the European Union in 2004, the complete facilities underwent renovation. Behind the historic façade which still reminds of the old times the herbs are now distilled and fermented using state-of-the-art technologies and machines.

Until 1993, Peter Zwack and the Underberg family each held 50% of the Zwack Unicum Plc. Peter Zwack, who still is chairman of the board, has seven children and two of them are active in the family business. His daughter Izabella, is head of the company’s wine division in Tokaj, named Dobogo. When in 1993, the second privatisation boom swept the country, the global leader in spirits, the DIAGEO concern, acquired 26% of the shares. The same year, the company was listed on the Budapest Stock Exchange.

Today, Zwack Unicum achieves revenues of around 120 million EUR with the company’s own products accounting for 80% of the turnover.

Targeting the catering business as well as department stores and food chains, Mr. Odzuck is positive about the company’s future. “In the next years, we are going to consolidate the market position of our existing brands, but we will also support our innovations such as the Tokaj brandy or the Tokaji Parlat,” he says. “We will also try to move into neighbouring segments, for example the distribution of stilled water and, of course, we are going to enhance our export activities. Yet, despite all growth plans it is most important to us to preserve the excellent reputation of Zwack Unicum and to continue our uncompromising quality strategy. Our labels enjoy a high recognition value and our packaging is as “unique” as is the taste of our drinks. Our employees identify with our philosophy and our products. These are important preconditions for the future.”

In order to enhance the popularity of its brands abroad, Zwack Unicum has already started set off several marketing projects.

So, next time, you stroll along the spirits shelves keep your eyes open for a dark round bottle with a golden cross in front. For sure, you will find it. Yet, the world will probably never find out about the recipe for Zwack Unicum.