G. Heileman Brewing Company
| Industry | Alcoholic Beverage |
|---|---|
| Founded | November 13, 1858 as The City Brewery in La Crosse, Wisconsin |
| Founders | Gottlieb Heileman and John Gund |
| Defunct | 1996 after Stroh's acquisition |
| Fate | Acquired by Stroh Brewing Company Primary brewery in La Crosse now owned by City Brewing Company |
Key people | Gottlieb Heileman, Johanna Heileman, E.T. Mueller, Roy Kumm, and Russell G. Cleary |
The G. Heileman Brewing Company, based in La Crosse, Wisconsin, operated from its inception in 1858 until it was acquired by Stroh's in 1996. The brewery carried the name of its co-founder Gottlieb Heileman from 1872 until the acquisition.
Background
In 1858, two immigrants—Gottlieb Heileman from Württemberg and John Gund from Baden—established The City Brewery in La Crosse, Wisconsin. Initially, their focus was on serving local and regional clientele, primarily supplying beer to hotels and bars. To enhance their distribution capabilities, they jointly purchased and reconstructed the International Hotel after it was destroyed by fire in 1862.
By 1872, divergent visions for the brewery's future caused a split: Gund sought to broaden the brewery’s reach beyond local markets, whereas Heileman preferred to concentrate on regional operations. This disagreement led to the dissolution of their partnership; Gund took ownership of Heileman's stake in the International Hotel while Heileman assumed full control of The City Brewery. Subsequently, Gund founded the Gund Brewing Company, and Heileman rebranded his enterprise as G. Heileman's City Brewery.
1872–1920
Following the end of the Gund-Heileman partnership in 1872, the G. Heileman Brewery was established under Gottlieb Heileman's leadership. Initially producing around 3,000 barrels annually, it served La Crosse and its surrounding areas. Upon Gottlieb’s death in 1878, his widow, Johanna Heileman, took over management until their son Henry reached adulthood. With assistance from her brother-in-law as foreman and later her son-in-law Emil T. Mueller joining the team, the company incorporated in 1890 as the G. Heileman Brewing Company.
After Henry's passing in 1895, Emil T. Mueller became vice president under Johanna’s leadership—making her one of the earliest female CEOs in America. Around this period, the company launched its signature Old Style Brand and by 1902 was producing 160,000 barrels of Old Style Lager annually. That same year, Heileman became the final brewery in La Crosse to unionize, which supported further expansion efforts. By 1915, distribution extended to over 30 states and had grown to 34 states at Johanna’s death in 1917, just prior to Prohibition.
1920–1933
With Prohibition beginning in 1920, Heileman shifted production away from alcoholic beer toward low-alcohol New Style Lager as well as non-alcoholic sodas and malt tonics; however, sales remained modest at approximately 20,000 barrels by 1926. The company’s continued operation relied heavily on manufacturing barley malt syrup—a legal sweetener promoted for home brewing—which proved critical for survival during this era.
Despite challenges such as a significant fire in 1931 causing $50,000 worth of damage, Heileman persisted while competitors like Gund Brewery ceased operations. Following federal regulatory changes under President Roosevelt that reclassified beer and light wines as non-alcoholic beverages, the company resumed full-scale beer production and experienced renewed growth after Prohibition ended.
1933–1971
Following the repeal of Prohibition, the Heileman family divested their ownership to the Paul Davis Company from Chicago in 1933, which officially incorporated the enterprise as The G. Heileman Brewing Company Incorporated. Throughout the 1930s, the company expanded its production facilities to accommodate increasing demand. A notable enhancement in their product line occurred mid-decade with the introduction of Special Export, a higher-alcohol beer (exceeding 6%) designed to complement the original Old Style Lager, which contained approximately 4% alcohol.
World War II imposed significant obstacles on production due to rationing and labor unrest, including a three-month closure of the La Crosse Brewery in 1948. During this time, Heileman shifted its marketing strategy away from emphasizing product quality toward competitive pricing and consumer appeal by launching several new labels; however, this approach adversely affected sales.
In 1957, Roy E. Kumm assumed the presidency, bringing a strategic vision focused on reclaiming the company’s pre-war market standing. His approach prioritized entering new markets, boosting production capabilities, and broadening the brand portfolio to attract a wider audience. Despite suffering a destructive fire in 1959, Heileman continued pursuing expansion through acquisitions and brand innovation.
Kumm also established the La Crosse Oktoberfest in 1961, inspired by Munich's renowned festival, which enhanced regional brand recognition and boosted sales. By 1971, under Kumm’s leadership, Heileman had climbed from 39th to 15th place among U.S. brewers, demonstrating substantial growth and competitive strength.
1971–1987
During the 1960s, Heileman brought on board Russell G. Cleary, son-in-law of Kumm, who succeeded him as president following Kumm’s passing in 1971. Cleary accelerated an aggressive acquisition and consolidation campaign throughout the 1970s and early 1980s, culminating in Heileman’s public listing on the New York Stock Exchange in 1973. This era saw Heileman expand its holdings by acquiring several historic American breweries such as Blatz, Blitz-Weinhard, Falls City, Grain Belt, National Bohemian, Olympia, among others.
Although facing certain legal scrutiny under the Sherman Antitrust Act aimed at curbing monopolistic practices, industry experts generally regarded Heileman’s acquisitions as enhancing competition rather than restricting it. Encountering barriers in further brewery takeovers, Heileman diversified into baking, snack foods, and mineral water sectors, launching products like La Croix. By 1982, brewing capacity at La Crosse had reached an annual output of 10 million barrels.
Heileman’s total brewing capacity ranked fourth nationally by 1983, trailing only Anheuser-Busch, Miller, and Stroh Brewery Company. The company produced more than 17 million barrels annually with revenues totaling $1.3 billion. Nonetheless, sales growth stagnated through the mid-1980s amid fierce marketing competition.
In 1987, Australian corporate raider Alan Bond initiated a hostile leveraged buyout of Heileman. Despite opposition from management, Cleary ultimately consented to the acquisition to ensure favorable outcomes for employees, shareholders, and stakeholders in La Crosse.
1987–1996
Alan Bond, who controlled the Tooheys brand and nearly half of Australia’s brewing sector, sought to build an international brewing conglomerate. He funded the purchase of G. Heileman through high-risk junk bonds, but his heavily indebted empire eventually collapsed, resulting in G. Heileman losing its autonomy. Cleary stayed on as director until his retirement in 1989. After Bond’s downfall, G. Heileman filed for bankruptcy in January 1991 and redirected its efforts primarily toward the malt liquor segment.
In a contentious strategy, Heileman introduced "Power Master," a malt liquor with an alcohol content of 7.4% ABV—exceeding that of rival products. The company faced accusations of deliberately marketing to urban African-American communities, especially within Chicago, a major market. Opposition spearheaded by Father Michael Pfleger led to a boycott against Colt 45, Heileman’s established malt liquor brand with 5.6% ABV. This boycott concluded in July 1991 after the Bureau of Alcohol, Tobacco, Firearms, and Explosives persuaded Heileman to discontinue Power Master.
Financial difficulties persisted for Heileman. Although initially agreeing to a $390 million sale in 1993, private equity firm Hicks, Muse ultimately acquired the company in 1994 for $300 million. Two years later, Stroh Brewery Company from Detroit purchased Heileman and took on its liabilities. However, Stroh’s own debt from prior acquisitions caused its collapse; it was divested in 1999 and split between Pabst and Miller. By 2000, the G. Heileman brand ceased to exist as an independent entity, with Pabst obtaining its brewery facilities, trademarks, and intellectual property—including Old Style and Special Export—which continue to be produced under the G. Heileman label.
Breweries
During the leadership of presidents Kumm and Cleary, G. Heileman aggressively expanded through acquisitions, buying sixteen breweries from the 1960s through the 1980s—including five breweries acquired through Carling Brewery purchases. At its height in 1983, Heileman operated thirteen breweries concurrently.
Brands
Heileman introduced a wide array of beer labels catering to both yearly and seasonal demands. Among its distinguished offerings were Old Style (established in 1902) and Special Export (introduced in 1934). Additionally, the company ventured into the non-alcoholic beverage sector by launching the sparkling water brand La Croix in 1981.
Old Style
Serving as Heileman’s premier brand, Old Style has a rich history. After securing the Golden Leaf trademarks in 1899, the firm debuted The Old Times Lager in 1900, which was renamed Old Style Lager in 1902 following legal challenges. Starting in 1905, the brand adopted a grenadier emblem, and by 1914, a red triangle was incorporated into its marketing to differentiate it from competitors.
During the Prohibition era, Heileman substituted Old Style Lager with New Style Lager—a near-beer alternative—and also produced malt syrups to maintain business operations. Once Prohibition ended, Old Style Lager was reintroduced and later simplified to Old Style in 1957 under the guidance of Kumm.
The brand achieved significant market penetration mainly across Wisconsin, the Chicago metropolitan region, Minnesota, Iowa, Nebraska, Michigan, and North Dakota. Its regional prominence was further highlighted through sponsorship of the Chicago Cubs.
On the Cold Cans podcast’s top 100 beers list, Old Style secured the #71 position, emphasizing its lasting appeal.
Acquisitions
Over its timeline, especially during Kumm’s and Cleary’s leadership, Heileman broadened its brand collection via numerous acquisitions, amassing roughly 400 labels spanning more than 50 distinct brands.
Key acquisitions include:
| Brand | Original Company | Year Acquired by Heileman |
|---|---|---|
| Braumeister | Independent Milwaukee Brewery | 1962 |
| Weidemann | George Wiedemann Brewery | 1967 |
| Blatz | Blatz Brewing Company | 1969 |
| Drewrys | Associated Brewing Company | 1972 |
| Schmidt | Jacob Schmidt Brewing Company | 1972 |
| Sterling | Sterling Brewery | 1972 |
| Rainier | Rainier Brewing Company | 1976 |
| Beck's | German Import | 1979 |
| Carling Black Label | Carling brewery | 1979 |
| Colt 45 | Carling brewery | 1979 |
| Tuborg | Carling brewery | 1979 |
| Henry Weinhard | Blitz-Weinhard Brewery | 1982 |
| Lone Star | Lone Star Brewing Company | 1982 |
| Champale | Champale Incorporated | 1986 |
| Hacker-Pschorr | German Import | 1986 |
King Gambrinus
King Gambrinus stands as an iconic emblem within brewing culture and has played a pivotal role as a mascot for Heileman, symbolizing the company’s legacy and market identity. In 1939, Heileman purchased a notable fifteen-foot statue of King Gambrinus for $100 from a shuttered New Orleans brewery and displayed it outside their plant—a landmark that remains today.
In the late 1970s, Heileman engaged local sculptor Elmer Petersen to craft an eight-foot bronze statue titled "King Gambrinus: Patron Saint and Guardian of Beer," which was installed at their La Crosse headquarters in 1980. This figure, fondly nicknamed "Gammy" by staff members, strengthens the company’s ties to brewing traditions.
Following vandalism to the original statue in 2015, City Brewery commissioned an identical replacement in 2016. Meanwhile, "Gammy" was taken into storage due to weather-related deterioration and is presently undergoing re-bronzing to improve its resilience. These statues endure as lasting representations of Heileman’s heritage and industry stature.
Today
As of 2024, G. Heileman Brewing Company no longer operates. Its original brewery in La Crosse is currently owned and managed by City Brewing Company, which purchased the facility from Pabst in 1999. While City Brewing utilizes the Heileman name dating from 1858 to 1872, it does not possess rights to G. Heileman's trademarks or beer brands. The plant produces beer—including Old Style under contract—and also handles bottling for tea, soft drinks, and energy beverages. Among City Brewing’s proprietary brands are La Crosse Lager and Kul Light.
World's Largest Six Pack
In 1969, designer Roy Wilson collaborated with G. Heileman Brewing Company to construct metal tanks adjacent to the La Crosse brewery that hold 22,220 barrels of beer. These tanks were painted to resemble a six-pack of Old Style beer, earning the nickname "World's Largest Six-Pack." By 2021, City Brewing continued to maintain these tanks, replacing the original Old Style paint with vinyl wraps featuring branding for La Crosse Lager.
In August 2023, Pabst announced plans to resume brewing Old Style at City Brewing’s La Crosse facility starting in November. In line with this, the World's Largest Six Pack was updated with a new vinyl covering depicting a contemporary retail version of an Old Style aluminum "tall boy" can.
See also
External links
- 1858 establishments in Wisconsin
- 1996 disestablishments in Wisconsin
- American companies established in 1858
- Food and drink companies disestablished in 1996
- Food and drink companies established in 1858
- Beer brewing companies based in Wisconsin
- Defunct brewery companies of the United States
- History of Wisconsin
- La Crosse, Wisconsin
- Pabst Brewing Company
- Companies of the United States by year of establishment
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