Joseph Schlitz Brewing Company

Joseph Schlitz Brewing Company

Company type	Private (historical)
Industry	Brewing
Predecessor	August Krug Brewery
Founded	1849 in Milwaukee, Wisconsin, United States
Founder	August Krug
Defunct	1999 (acquired by Pabst Brewing Company)
Fate	Acquired by Stroh Brewery Company in 1982; sold to Pabst Brewing Company in 1999
Successor	Pabst Brewing Company (brand owner since 1999)
Headquarters	Milwaukee , United States
Area served	United States
Key people	Joseph Schlitz, August Uihlein, Robert Uihlein Jr., Eugene Kashper (current brand owner)
Products	Schlitz beer, Old Milwaukee, Primo, Schlitz Light, Schlitz Dark, Schlitz Malt Liquor, Schlitz Red Bull, Schlitz Ice
Owner	Blue Ribbon Partners (brand owner)
Parent	Stroh Brewery Company (1982–1999), Pabst Brewing Company (1999–present)

Joseph Schlitz Brewing Company was a prominent American brewery headquartered in Milwaukee, Wisconsin. Established in 1849, it grew to become one of the leading beer producers in the United States. Its signature beer, Schlitz (), has been brewed by Pabst Brewing Company since 1999. Currently, the Schlitz brand is owned by Blue Ribbon Partners, based in San Antonio, and led by beer industry figure Eugene Kashper.

The company originated with August Krug in 1849, but ownership transferred to Joseph Schlitz in 1858 following his marriage to Krug’s widow. By 1902, Schlitz had risen to become the largest beer producer in America, a status it maintained intermittently through the mid-20th century while competing with Anheuser-Busch during the 1950s. In 1982, the firm was acquired by Stroh Brewery Company, and later sold to Pabst Brewing Company in 1999.

Early Years

Joseph Schlitz initially worked as a bookkeeper for August Krug’s brewery in Milwaukee and assumed control after Krug’s passing in 1856. Two years later, Schlitz married Krug’s widow and rebranded the enterprise as Jos. Schlitz Brewing Co. The company expanded its leadership team when August Uihlein, Krug’s nephew, joined in 1861 and eventually played a pivotal role in its management.

Contrary to widespread belief, Schlitz did not donate thousands of barrels of beer following the Great Chicago Fire of 1871; rather, its nationwide growth was driven by establishing distribution centers and utilizing rail transport networks efficiently. By the late 1880s, Schlitz had constructed numerous tied houses throughout Chicago, many of which still display their unique branding.

In 1873, Schlitz rejected an acquisition proposal from Tennessee-based Bratton and Sons. Two years later, Joseph Schlitz tragically died in a shipwreck while returning from Germany. Following his will and honoring Krug’s intentions, control passed to the Uihlein brothers—August, Henry, Alfred, and Edward—who secured full ownership after Anna Maria Krug Schlitz passed away in 1887. The Uihlein family managed the brewery for over a hundred years but retained the Schlitz name due to its strong brand recognition within the United States.

Prohibition Era and Growth

The company experienced significant growth during the early 20th century, achieving a production milestone of one million barrels by 1902 and surpassing Pabst as America’s largest brewery. Schlitz introduced several industry advancements, most notably pioneering brown glass bottles in 1912 to shield beer from sunlight exposure—a practice that became an industry standard. This innovation also inspired Milwaukee’s Schlitz Brown Bottle Restaurant, which opened its doors in 1938.

The advent of Prohibition in 1920, fueled by the temperance movement, presented substantial obstacles for Schlitz. To maintain business operations and preserve jobs, Joseph E. Uihlein Sr. initiated a chocolate manufacturing division under the Eline brand in 1919, capitalizing on Wisconsin’s dairy resources. Despite expanding into hard candies and gumballs with considerable investment, Eline struggled due to inferior quality and stiff competition from The Hershey Company, ultimately ceasing operations by 1928.

During Prohibition, the company rebranded as Schlitz Beverage Company and shifted its focus toward producing malt extracts and non-alcoholic beverages such as Schlitz Famo, while keeping brewing equipment ready for future use. This strategic adaptation enabled Schlitz to rapidly regain its standing as the world’s best-selling brewery by 1934 following Prohibition’s repeal.

Initial union strike and subsequent decline

In 1953, brewery workers in Milwaukee initiated a strike lasting 76 days, which significantly disrupted Schlitz's production capabilities and enabled Anheuser-Busch to overtake Schlitz in the American beer market. Schlitz reclaimed its leading status by capitalizing on the success of its flagship beer and introducing the budget-friendly Old Milwaukee brand. The rivalry for market dominance persisted, with Schlitz holding the second position as late as 1976.

By 1967, Robert Uihlein Jr., the grandson of August Uihlein, held the roles of president and chairman. To satisfy growing demand while cutting expenses, Schlitz modified its brewing method for the flagship beer in the early 1970s. These adjustments involved substituting some malted barley with corn syrup, incorporating silica gel to prevent haziness, adopting high-temperature fermentation techniques, and utilizing cheaper extracts. Additionally, Schlitz explored continuous fermentation by constructing a new brewery in Baldwinsville, New York. These process changes negatively affected flavor consistency, accelerated spoilage, and diminished consumer satisfaction.

In 1976, anticipating new FDA requirements for ingredient disclosure, Uihlein replaced silica gel with a substance called "Chill-garde," which was removed during production to avoid listing on labels. Unfortunately, "Chill-garde" reacted adversely with a foam stabilizer, resulting in a costly recall of 10 million bottles that amounted to $1.4 million in losses. Concurrently, Schlitz struggled against the growing popularity of high-volume light beers such as Miller Lite and Bud Light; despite launching the short-lived Schlitz Light in 1976, it failed to compete effectively.

To counteract declining sales, Schlitz introduced a controversial television campaign in 1977 created by Leo Burnett & Co. The ads depicted Schlitz consumers humorously intimidating competitors to maintain loyalty; however, viewers perceived the tone as threatening. Due to poor reception, the campaign was discontinued after just 10 weeks, and Burnett was dismissed.

Second union strike and acquisition by Stroh

During the 1980s, Schlitz fell from being the second-largest to the fourth-largest brewery in the United States, surpassed by Miller and Pabst. A severe setback occurred in 1981 when approximately 700 production workers at the Milwaukee plant went on strike following contract expiration. This nearly four-month labor stoppage severely hindered production and financial stability, compelling Schlitz management to consider selling the company.

Unable to continue operations at its oldest and least efficient Milwaukee facility, Schlitz shut down the plant—ending the strike but signaling a downturn for the brand. During this era, Schlitz launched the "No One Does It Like the Bull" advertising campaign featuring popular musical artists such as Kool and the Gang and Teddy Pendergrass to enhance brand image.

In 1981, Anheuser-Busch purchased Schlitz’s Baldwinsville brewery to aid Bud Light production by utilizing its specialized design suited for complex brewing methods. The following year, Stroh Brewery Company outbid competitors Pabst and Heileman by acquiring a 67% stake in Schlitz before eventually gaining full control, thus becoming the third-largest brewing firm in America. Although Schlitz initially resisted the takeover, it accepted after Stroh raised its offer to $17 per share and agreed to divest either its Memphis or Winston-Salem breweries in compliance with U.S. Justice Department regulations.

After the sale, the Milwaukee Schlitz Brewhouse remained idle until it was demolished in 2013. The remaining brewery complex was transformed into Schlitz Park through tax increment financing combined with government assistance, representing a strategic redevelopment of historic properties.

Pabst acquisition and brand revival

Once a leading name in the beer market, Schlitz had fallen to the level of a budget beer and became increasingly rare in bars. Stroh Brewing, weighed down by debt from its Schlitz acquisition, faced financial difficulties. In 1999, the Pabst Brewing Company purchased Schlitz as part of its acquisition of Stroh.

The original Schlitz brewing recipe was lost during a reformulation in the 1970s and was not included in any later sales. Pabst undertook efforts to recreate the authentic 1960s formula through extensive research and consultations with former brewmasters. The revitalized Schlitz was reintroduced in 2008, accompanied by a fresh marketing campaign, targeting cities such as Chicago, Florida, Boston, Minneapolis-Saint Paul, and Milwaukee. The promotional effort included featuring Cynthia Myers, the 1968 Playboy playmate, as the brand ambassador in 2009.

In 2014, American businessman Eugene Kashper along with TSG Consumer Partners acquired Pabst Brewing Company—including Schlitz, Pabst Blue Ribbon, Old Milwaukee, and Colt 45—in a deal valued around $700 million.

Currently based in San Antonio, Pabst continues producing Schlitz alongside Old Milwaukee and four varieties of Schlitz malt liquors—Schlitz Red Bull, Schlitz Bull Ice, Schlitz High Gravity, and Schlitz Malt Liquor. Although Schlitz no longer ranks among the nation’s top-selling beers, it retains a loyal following particularly throughout the Midwest.

Products

• Schlitz: Lager styled after American tradition
• Schlitz Light: Light lager option
• Schlitz Dark: Darker lager variety
• Schlitz Malt Liquor
• Schlitz Red Bull: Malt liquor variant
• Schlitz Ice: Lager brewed using ice filtration
• Old Milwaukee: Traditional American-style lager
• Primo: Another American-style lager

Slogans

• "The beer that made Milwaukee famous"
• "When you're out of Schlitz, you're out of beer"
• "Real Gusto!"
• "Just the kiss of the hops"
• "Move up to Schlitz"
• "The greatest name in beer"
• "Schlitz Rocks America"
• "Go for the Gusto"
• "When it's right, you know it"
• "There's just one word for beer, and you know it"
• "No One Does It Like the Bull"

See also

• Beer in Milwaukee
• List of defunct breweries in the United States
• Schlitz Playhouse of Stars and Pulitzer Prize Playhouse, television series sponsored by Schlitz
• Union Refrigerator Transit Line, private refrigerated railcar line founded by Schlitz in 1895
• "What's Made Milwaukee Famous (Has Made a Loser Out of Me)", song from 1968

External links

• Vintage Schlitz Beer advertisements from the 1970s
• Official Schlitz Beer website
• Official site for Schlitz Gusto
• Archive of mid-20th century Schlitz beer promotional materials hosted by TJS Labs Graphic Design Gallery
• Historic American Engineering Record files, Milwaukee, Wisconsin: