Pabst Brewing Company

Pabst Brewing Company

Industry	Alcoholic beverage
Founded	1844 in Milwaukee, WI
Founder	Jacob Best
Headquarters	Los Angeles, California
Key people	Frederick Pabst
Products	Beer
Website	http://www.pabstbrewingco.com

The Pabst Brewing Company (/ˈpæpst/) is an American company that dates its origins to a brewing company founded in 1844 by Jacob Best and by 1889 named after Frederick Pabst. It is currently the holding company contracting for the brewing of over two dozen brands of beer and malt liquor from defunct companies including P. Ballantine and Sons Brewing Company, G. Heileman Brewing Company, Lone Star Brewing Company, Pearl Brewing Company, Piels Bros., National Brewing Company, Olympia Brewing Company, Falstaff Brewing Corporation, Primo Brewing & Malting Company, Rainier Brewing Company, F & M Schaefer Brewing Company, Joseph Schlitz Brewing Company, Jacob Schmidt Brewing Company and Stroh Brewery Company.^[1]

The company is also responsible for the brewing of Ice Man Malt Liquor, St. Ides High Gravity Malt Liquor, and retail versions of beers from McSorley's Old Ale House and Southampton Publick House (of Southampton, New York).^[1]

Pabst is headquartered in Los Angeles, California.^[2][3] On November 13, 2014, Pabst announced that it had completed its sale to Blue Ribbon Intermediate Holdings, LLC. Blue Ribbon is a partnership between American beer entrepreneur Eugene Kashper and TSG Consumer Partners, a San Francisco–based private equity firm.^[4] Prior reports suggested the price agreed upon was around $700 million.^[5]

History

Formation

The original brewery was founded in 1844 as The Empire Brewery, later Best and Company, by brewer Jacob Best. The brewery was run by Jacob, Sr. and his sons Phillip, Charles, Jacob, Jr., and Lorenz; Phillip took control of the company in 1860.^[6] They started the brewery on Chestnut Street Hill in Milwaukee with a capacity of 18 barrels (2.9 m³). Later, in 1863, Frederick Pabst, a steamship captain and son-in-law of Phillip Best, bought a share in Phillip Best Brewing Co., by which time the brewery was already selling a lager that they began bottling in 1875 under the name Best Select. By 1874 Phillip Best Brewing Co. was the nation's largest brewer.^[7] In 1866, Best's other daughter Lisette married Emil Schandein, and Best sold the remaining half of the business to her husband, making Frederick Pabst president, and her husband vice-president.^[8][9] Schandein unexpectedly died in Germany and Lisette Schandein took over as vice-president of the company which she remained until 1894.

During Prohibition, Pabst stopped making beer and switched to cheese production, selling more than 8 million pounds of Pabst-ett cheese. When Prohibition ended, the company went back to selling beer, and the cheese line was sold to Kraft.^[10]

Pabst was renowned in Milwaukee for its brewery tours. Visitors to Pabst's tour were rewarded with sometimes bottomless glasses of beer at its end-of-tour Sternewirt Pub. Complete with a statue of Captain Frederick Pabst and waitresses pouring from pitchers of Pabst Blue Ribbon, Pabst Bock, and Andeker, the pub was popular with both tourists and locals, especially students from nearby Marquette University and the University of Wisconsin–Milwaukee.^[11][12] Pabst's sales reached a peak of 15.6 million barrels in 1978 and then went into steep decline.^[7]

Kalmanovitz era

The former Pabst Brewery in Milwaukee, Wisconsin

Paul Kalmanovitz, a "self-made beer and real-estate baron," purchased the Pabst Brewing company in 1985 for $63 million in a hostile takeover through the auspices of his holding company S&P Co.;^[13][14] S&P's first brewery was Maier Brewing Company, purchased in 1958.^[13] When Kalmanovitz died in 1987 S&P Co. became legally inseparable from the Kalmanovitz Charitable Trust.^[13] S&P Company was ordered by the IRS to sell the Pabst Brewing Company by 2005 or lose its not-for-profit, tax-free status. After a while, PBC claimed that they were unable to find a buyer at market value and requested an extension until 2010 that the IRS granted.

In 1996, Pabst's entire beer production was contracted out to the Stroh Brewery Company, which utilized excess capacity at the former flaship brewery of the G. Heileman Brewing Company of La Crosse, Wisconsin it had absorbed earlier that year. In turn, the historic Pabst brewery in Milwaukee was closed,^[7] ending a 152-year association with the city and turning that company into a virtual brewer.^[7] In 1999, Pabst purchased the Stroh label,^[15] and the brewery in La Crosse was sold to City Brewing Company.^[16] In 2001, production was contracted to Miller Brewing Company, and by then what remained of the Pabst company operated out of San Antonio.^[14]

In 2006, CEO Brian Kovalchuk resigned and the board replaced him with Kevin Kotecki. Kotecki swiftly moved the Pabst Brewing Company and its roughly 100 headquarters personnel to Woodridge, Illinois, a Chicago suburb. The offices in Woodridge were located on historic US Route 66.

Between 2005 and 2010, "PBR brand volume increased 69 percent [and Pabst's] gross margins increased 48 percent, operating profit rose 81 percent, and net revenue per barrel increased 28 percent."^[17]

Metropoulos era

On May 26, 2010, investor C. Dean Metropoulos reached a deal to purchase Pabst for about $250 million.^[18] On May 14, 2011, it was announced that Pabst would be relocating to Los Angeles, California.^[2]

Pabst retains a data center in San Antonio, Texas, the previous location of its headquarters. Pabst's long obsolete brewery complex in Milwaukee has been targeted to be developed into restaurants, entertainment venues, stores, housing and offices. The $317 million project is the subject of much debate in Milwaukee.^[19] On May 28, 2008 a former Pabst Brewery in Newark, New Jersey, which was in the process of being demolished, caught fire and was seriously damaged.^[20]

Pabst Brewing Company won "Large Brewing Company of the Year" at the Great American Beer Festival in 2011 and 2012.^[21]

Kashper era

Pabst Brewing Company announced November 13, 2014 that it had completed its sale to Blue Ribbon Intermediate Holdings, LLC. Blue Ribbon is a partnership between American beer entrepreneur Eugene Kashper and TSG Consumer Partners, a San Francisco–based private equity firm.^[4] Prior reports suggested the price agreed upon was around $700 million.^[5]

In July 2015, Pabst announced plans to return to Milwaukee and build a small brewery on the site of the original Pabst Brewing "complex." ^[22] The company plans to spend between $3 million - $4 million to redevelop an old German Methodist church, turning it into an "innovation brewery." The new location will craft small-batch brews and focus on the production of new craft beers.

Outside of the United States

Pabst Blue Ribbon America has a licensing agreement and joint venture arrangement with China Pabst Blue Ribbon. It is produced, marketed and distributed by CBR Brewing Company, which jointly owns the company along with Guangdong Blue Ribbon Group under a sub-licensing agreement with the Pabst Brewing Company. CBR is a British Virgin Islands owned company but it is based in China.^[23][24][25] China Pabst recently released a new beer called Pabst Blue Ribbon 1844 for consumption in the domestic market; it sells for 44 U.S. dollars a bottle.^[26]

Product lines

Pabst Blue Ribbon

• Pabst Blue Ribbon, also known as "PBR", is the namesake of the Pabst Brewing Company products. Originally called Best Select, and then Pabst Select, the current name came from the blue ribbons that were tied around the bottle neck, a practice that ran from 1882 until 1916 due to a silk shortage during WWI. It was once again tied around the bottles after prohibition from 1933 until 1950.

Jacob Best

• Jacob Best Pilsner is a pale lager named after Pabst's founder, Jacob Best.

Ballantine

• Ballantine IPA relaunched in August 2014 after nearly 20 years off the market. This is Pabst's foray into the craft beer scene.^[27] Ballantine's flagship beer, Ballantine XXX Ale, has remained on the market since the prohibition ended. Ballantine Brewery was acquired by Pabst in 1985 when it bought Falstaff.

Schlitz

• Schlitz was first brewed by the Joseph Schlitz Brewing Company in Milwaukee, Wisconsin. Schlitz was one of the world's top-selling beers during the first half of the 20th Century.^[28] Pabst Brewing Company also produces four Schlitz malt liquors—Schlitz Red Bull, Schlitz Bull Ice, Schlitz High Gravity, and Schlitz Malt Liquor.^[1]

Old Milwaukee

• Old Milwaukee is a pale lager. It was first brewed in 1890 by the Joseph Schlitz Brewing Company in Milwaukee, Wisconsin and was later reintroduced in 1955 as a value priced beer.

Colt 45

• Colt 45 is a brand of malt liquor first produced in 1963 by the National Brewing Company in Baltimore, Maryland. Colt 45 was named after running back #45 Jerry Hill of the 1963 Baltimore Colts.

St. Ides

• St. Ides is a brand of malt liquor first launched by the McKenzie River Corporation in 1987. St. Ides gained prominence during the late 1980s and early 1990s through the use of celebrity endorsements by rap artists. Ice Cube, 2Pac, Dr. Dre, Snoop Dogg, Scarface, The Notorious B.I.G., and Method Man & Redman were a few of the rappers who endorsed the brand.

Stroh's

• The Stroh Brewery Company in Detroit, Michigan first brewed Stroh's beer in 1850. Stroh's is an American-style lager.

Old Style

• Old Style was first brewed in 1902 by the G. Heileman Brewing Company in La Crosse, Wisconsin under the name Old Style Lager; it was popular in Wisconsin, the Chicago metro area, Minnesota, eastern Iowa, Lincoln, Nebraska, southwestern Michigan, Upper Michigan, and Fargo and Grand Forks, North Dakota. The original Heileman's Old Style brewery in La Crosse is now owned by the City Brewing Company. It brews La Crosse Lager, which is based upon the original Old Style recipe and is kräusened for 30 days. This beer may also be the basis for the brewery's nationally-distributed DB Hobbs brand.^[29]
• In the early 1990s, Chicago-born actor Dennis Farina made a series of commercials for Old Style beer, mentioning that it was "our great beer... and they can't have it."^[30] Old Style is prominently featured on the Showtime Original series Shameless, the AMC Original Series Better Call Saul, as well as referenced in the song "End of the Night" by ska-swing band the Cherry Poppin' Daddies and drunk by Peggy and Don in Mad Men S7/E7, "Waterloo", as they watch the July 20, 1969 lunar landing.

Lone Star

• Lone Star was first brewed by Lone Star Brewing Company in San Antonio, Texas. It was Lone Star Brewing Company's main brand and marketed as "The National Beer of Texas."

Olympia

• The Olympia Brewing Company in Tumwater, Washington first brewed Olympia beer. Olympia is an American-style pale lager.

Rainier Beer

• Rainier Beer was first brewed in Seattle, Washington by the Rainier Brewing Company. It is popular in the Pacific Northwest of the United States.

Schmidt Beer

• Schmidt Beer was first brewed by the Jacob Schmidt Brewing Company in St. Paul, Minnesota in 1855. It is popular throughout the Upper Midwest.

National Bohemian

• National Bohemian, also known as "Natty Boh" or simply "Boh" was the flagship beer of the National Brewing Company in Baltimore, Maryland. It is a Bohemian-style American beer. Ninety percent of National Bohemian sales are in the Baltimore area.^[31]

Former brands

Andeker

Pabst introduced a premium brewed European style lager called Andeker in 1939.^[32][33] After dying out in the 1960s it was brought back from 1972 to 1986, brewed from extra-rich malt, specially selected grain, and select hops, then given extra ageing - lagering in German - to develop a full, rich, smooth "continental" taste, according to its promotions.

It has been described as "The most European of the Americans, with full body and well-modulated flavor. Creamy rather than violently carbonated, sharp but not bitter."^[34]

Red, White and Blue

Red White & Blue was a brand of beer produced and sold by Pabst from before Prohibition until the mid-1980s. Pre-Prohibition advertisements lauded its "mellow" taste and drinkability. After years of average sales, the brand saw significant growth in the early 1980s due to creative marketing campaigns. However, Pabst reformulated it to reduce costs and by the mid-1980s it was known as a "cheap beer". Sales steeply declined and the brand was discontinued.

Awards

Awards at the Great American Beer Festival:

Awards at the World Beer Cup:

Golden Icon Awards by Travolta Family Entertainment:

Advertisements

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  Pabst Malt Extract 1896

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  Pabst Malt Extract 1897

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  Pabst Malt Extract - Advertisement - 1897

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  Pabst New Amsterdam - Advertisement - 1897

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  Pabst Extract 1917

Footnotes

Further reading

• Thomas C. Cochran, The Pabst Brewing Company: The History of An American Business. New York: New York University Press, 1948.

External links

• Pabst Brewing Company
• Paul Bialas Photography & Brewery Books, modern images of the dilapidated Schlitz and Pabts breweries.
• Olympia Beer: The Death of a Brand
• Old Style Beer: History
• Illustrated History of the Olympia Brewing Company
• Pabst Brewing Company and the 1893 World’s Columbian Exposition Urban Myth Debunked., Neil Gale, PhD - Historian