The petroleum industry had the Rockefeller dynasty, the steel industry had the Carnegie dynasty, and the American breweries had their barons. The growing popularity of Golden Lager gave us three big names that became legendary: Busch, Pabst, and Schlitz. In less than a generation, these industry giants amassed colossal fortunes while competing for brewing supremacy.
The Ascent of American Lager
At the beginning of the 19th century in America, beer wasn’t popular in the United States. Rum and whiskey were heavily consumed, but beer was not. Produced on a small scale, the available beer was heavy, sedimentary, and bitter-tasting. It was top-fermented, dark, and robust. Americans were familiar with Stouts, Porters, and Strong Ales.
Despite having plenty of good land for growing hops and grains, the colony lacked many necessities, and a respectable brewery remained a luxury. Moreover, thanks to the triangular trade, the United States was flooded with cheap rum and whiskey. New England also overflowed with apples, which were used to produce industrial quantities of cider. As a result, Americans had a sweet tooth. When winter came, a second fermentation produced a very strong drink called applejack, a true gut-wrencher capable of killing a man on the spot.
While rum was excessively popular across all classes at the beginning of the century, the Napoleonic wars severed ties with the Caribbean, whose precious sugar was the base for American rum. Thus, American whiskey became America’s #1 drink. Of course, wine graced the tables of the wealthy, and it was still preferred over other beverages by beer drinkers. Beer constituted a limited, uninteresting market, with no great future ahead. But all of that was about to change with the Napoleonic wars, the German industry, and the opening of the American West.
The German Triangle: St. Louis, Milwaukee, and Cincinnati
Across the Atlantic, the numerous German states were bleeding white, and the perpetual conflicts between German dukes and barons took a desperate turn around 1830 when the prices of all basic goods led to famine. Thus, within a generation, over three million Germans set out for America in search of a better life. Unlike many other immigrants of the time, a good number of them arrived in America with their savings. Several even came from families wealthy enough for their era.
It was in this context that Adolphus Busch arrived, the second to last of a family of 22 children whose parents were wealthy wine merchants. Busch was short, stocky, and stout, with a gleaming eye that smelled a good deal. Arriving in Louisiana, he traveled up the Mississippi to reach St. Louis, which was then a haven for any German immigrant. Following the German immigration, a quarter of the city spoke German. There were German churches, German schools, and even a newspaper in the language of Goethe.
After a few jobs as a boat inspector, Busch opened a business selling brewing equipment. He saw that the Germans were thirsty, and the Americans were ill-equipped to supply them. Having already worked in a brewery, he knew what a brewer needed. One of his clients was a peculiar gentleman who knew nothing about beer and ended up with a brewery somewhat by accident. Mr. Anheuser, another successful German immigrant, was a soap manufacturer. One of his clients went bankrupt and gave him his brewery to settle his debts.
However, it wasn’t exactly this that marked Adolphus; it was rather his pretty, single daughter. Quickly, the two married, and Adolphus thus became a member of the Anheuser family.
As Anheuser’s troubles increased, the question of a partnership with Adolphus was quickly settled. In less than a year, the young Busch tripled production, and Anheuser went from a low reputation to one of the most prominent breweries in St. Louis. Adolphus worked tirelessly. Every day, every hour, he watched, measured, and learned. His effort was matched only by his ambition: to become number one.
The American Civil War: Beer for the Soldiers
The celebrations were short-lived. Barely a few years after joining his father-in-law, Busch faced a serious problem. The Civil War had just broken out. It was time for rationing. Labor was conscripted. Many breweries feared they would not survive. Others fell victim to bombardments. For Busch, the Civil War proved to be an incredible opportunity.
Missouri was very close to the action. The city of St. Louis was one of the main transport routes for Union soldiers. Since the Union high command banned the use of rum and whiskey, the low-alcohol beer of German brewers immediately became a solution. Beer was officially approved by the high command because of its “non-intoxicating” nature.
Soon, Busch began supplying troops with cheap, well-preserved beer. Not only did these soldiers get used to the taste, but they also demanded more. The Civil War would thus contribute to the spread of German lager, which until then had been mainly a northern trend.
When the Barons Arrive: Busch, Pabst, and Schlitz
A bit further north, in Milwaukee, the Pabst Brewery also expanded. “Captain Pabst” was a tall, commanding figure. Originally from Nicholausreith, Saxony, he also came from a wealthy family looking for better horizons. Arriving in the United States in 1848, he worked on the Great Lake boats from the age of 14. Becoming a captain at 21, he met a certain Marie Best, daughter of an influential brewer. Just like for Busch, love and business were never far away. Within a few years, he joined the brewery and would contribute significantly to its growth.
It was a major disaster that helped Pabst carve his mark on the national scale. In 1871, a violent fire ravaged the city of Chicago, destroying more than half of its buildings. Breweries soon couldn’t keep up with demand; Pabst’s brewery would secure lucrative contracts for Chicago consumers.
Just like Busch and Schlitz, Pabst expanded its breweries, ventured out of its hometown, purchased warehouses, invested in development, and significantly increased its production. Busch bought a glass company for its bottles, established a railroad company to deliver to the city, and acquired a company specializing in refrigerated vans for long-distance delivery.
Schlitz, another brewery from Milwaukee, rose to the top ranks with no less determination and audacity. Joseph Schlitz, a brewer from Rhineland-Palatinate, also sought fortune in young America. In 1858, he joined August Krug’s brewery and inherited the company after his death.
It was Schlitz who invented the brown bottle, which protected beer from light and thus delayed its spoilage. Schlitz also invented the “Tall Boy” 16-ounce can. In the 1890s, Schlitz joined the Union Refrigerator Transit Company to develop and operate a more profitable refrigerated freight line for the brewery.
The rise of these three companies in the early twentieth century was unique in beer’s history. Beyond the long list of technical innovations, these fierce, opportunistic, and savvy giants transformed breweries into true production factories. They did not hesitate to take what was rightfully theirs, did not ask for permission from anyone, and all aimed to supply the world.
Powerful and wealthy dynasties
The wealth accumulated by these barons was immense. Nothing better epitomizes the frugal exuberance of these industry titans than the personality of Augustus Busch. Busch bought the former estate of a Civil War general and built real castles.
Soon, he became the richest man in the city and did not hesitate to flaunt his money for all to see. His extravagance even earned him the adjective “Buschy,” meaning “show off.” In addition to his numerous homes across the country, Busch had his train converted into a veritable palace. When Augustus moved, it was an empire that followed.
The parties Busch hosted on his estate made headlines across America. Dukes, stars, actors, musicians, and senators were regular guests. Augustus then had the largest personal park in the United States, maintained by hundreds and hundreds of gardeners. Exotic animals could be found there. Moreover, he was familiar with the German Kaiser, from whom he received medals. He dealt directly with American presidents, who in turn visited his prestigious estate.
The 1893 Great Universal Exhibition of Chicago
In 1873, the stakes had never been higher for Augustus Busch and “Captain” Pabst. The city of Chicago hosted the Colombian Exposition, a world fair celebrating the 400th anniversary of Christopher Columbus’ “discovery.” For entrepreneurs, it was also about showcasing the best American products to the world. Of course, Augustus and Frederick were there. Nobody was mistaken; it was the war for American lager.
For the occasion, Augustus Busch had a huge pavilion built, reproducing every detail of his brewery in a sumptuous steel dome inside which there was a huge detailed model of his brewery. The small castle of nearly nine square meters took three months to build and cost over $15,000, a real fortune. Yet Augustus was not the only one trying to impress the crowd.
His rival, Captain “Pabst,” buoyed by his judicious expansion in Chicago and very profitable investments in real estate, had a pavilion built for $20,000, adorned with rich Greco-Roman architecture. On the arches, small cherubs proudly announced the joy of his beer. Under this impressive dome, a replica of his brewery, but plated in gold and silver. Augustus Busch was breathless: this small model had cost over $100,000.
On the other hand, the worst was yet to come. The World’s Fair awarded prizes for all categories of products sold, according to a universal standard of quality. Busch was certain to win the top prize. His Budweiser beer was of exceptional quality, based on a Bohemian recipe developed by his partner for the United States.
His fury knew no bounds when he heard that it was Pabst who scored the most points. Pabst made cheap beer, he kept repeating. Incensed, he demanded a recount, which reluctant judges accepted, but only to repeat the initial verdict.
Busch, who believed he had bought off all the judges, had not yet had his final say. When he learned that the ultimate decision rested with a single chemistry expert, he spent the next six months tracking him down to Germany. It was all in vain. For the first time, Busch had to admit defeat. Pabst, buoyed by his official recognition, invested his Pabst beer with the blue ribbon, which would become emblematic of his brewery.
Surviving Prohibition
Not everything was rosy in the land of ambition. While golden lager, manufactured in industrial quantities, was undoubtedly preferred by Americans, not all of them viewed this beverage, reputedly foreign, favorably.
The United States was still recovering from its excessive reliance on cheap whiskey, reaching a record consumption of 7 liters of pure alcohol per capita in 1830. Under the influence of the American spiritual revival and religious congregations, societies formed to denounce saloons, these new taverns with a bad reputation where heads of households would squander their savings. Under pressure from temperance groups, several saloons were forced to close their doors. Worse, entire states began to ban the sale of alcohol, starting with Maine in 1846.
German breweries had always had their critics, but things suddenly became very serious when nearly a third of American states joined the “Drys,” meaning alcohol prohibitionists. The stakes were so high that the giants would then commit the unthinkable: to ally against temperance.
The fight was merciless. In the war of ideas amidst religious and social fervor, the struggle for sobriety mixed with the fight for women’s emancipation and abolitionism. Added to this was the powerful xenophobic sentiment of the well-meaning elites. A crisis that had been brewing for a long time began to boil over.
Women, the clergy, and the employers, each for very different reasons, would have the final say. For 13 years, starting in 1920, the United States lived under prohibition, leading to the closure of thousands of breweries. Even after the end of this period in 1933, the few breweries that survived struggled to find viable profit margins. In this difficult economic context, only the beer barons seemed to come out on top. Busch sold engines to the army, malt extract, and soda. Others ventured into soap. Pabst made profitable investments in real estate.
The economic recovery was swift. Thanks to World War II, the major breweries had a guaranteed customer: the American Army. The sudden post-war prosperity created a massive, unprecedented market, and the opening of borders during the Cold War increased exports. By the 1960s, American breweries moved to the next stage: they became international conglomerates.
Brewing for Posterity
In conclusion, the story of Busch, Schlitz, and Pabst encapsulates the vibrant history of American brewing, marked by innovation, competition, and resilience. These brewing titans navigated through tumultuous times, from intense rivalry and fierce battles for market supremacy to the challenges of Prohibition.
Their relentless pursuit of excellence and adaptation to changing circumstances propelled them forward, enabling survival and eventual triumph in the face of adversity. Through strategic investments, technological advancements, and sheer determination, they not only weathered the storms of prohibition but emerged stronger and more resilient than ever.
The legacy of Busch, Schlitz, and Pabst extends far beyond brewing; it embodies the spirit of American entrepreneurship and ingenuity. Their stories serve as a testament to the power of innovation, determination, and strategic vision in shaping industries and leaving a lasting impact on society.
As we reflect on their journey, we are reminded of the enduring legacy of those who dare to dream big, challenge the status quo, and redefine the boundaries of possibility. The legacy of Busch, Schlitz, and Pabst lives on, inspiring generations of entrepreneurs and brewers to push the boundaries of excellence and leave their mark on the world.
Sources: American Beer Barons
- Blue Ribbon Brouhaha?: Beer Battles at the 1893 World’s Columbian Exposition, Paul Durica
- Ambitious Brew, a History of American Beer, Maureen Ogle
- Selected as America’s Best in 1893, Pabst Mansion
- Adolphus Busch, Immigrant Entrepreneurship
- Bitter Brew: The Rise and Fall of Anheuser-Busch and America’s Kings of Beer, William Knoedelseder
- Pabst Brewing Company: History of an American Business, Thomas C. Cochran
- Brewed in America: A History of Beer and Ale in the United States, Stanley Baron
- Brewing Battles: A History of American Beer, by Amy Mittelman
Pierre-Olivier Bussieres is the author of the podcast Le Temps d’une Bière, producer of Hoppy History, and editor-in-chief of Le Temps d’une Bière media. He holds a graduate degree in political science from Carleton University.
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