Taxes and Inflation

Two things I read recently reminded me of the central argument of my dissertation and Brewing Battles. At the beginning of the month, I read a review of Roger Lowenstein’s new book Ways and Means: Lincoln and His Cabinet and the Financing of the Civil War. Eric Foner wrote the review. Eric is a very prominent historian and was my dissertation sponsor.

The other thing I read was from a newsletter I get from the New York Times DealBook. DealBook which is about business and economic news had a post that Roger Lowenstein wrote discussing inflation and how war can affect the economic climate of the country.

Both Eric’s review and Lowenstein post talked about the need of the north to finance the war which resulted in a myriad of taxes being a placed on a variety of objects and activities. Many years ago, I discovered that Salmon P. Chase, Treasury Secretary, and the Lincoln administration established taxes on alcohol and tobacco as well as creating an income tax. Although Congress repealed almost all the other taxes from following the end of the war, the Internal Revenue taxes on liquor and tobacco remained. These taxes provided over 50% of the federal government’s revenue until the enactment of the Internal Revenue tax in 1913.

What follows is an excerpt from Chapter Two of Brewing Battles that describe the efforts by Chase and the Lincoln administration to finance the war.

“From the moment Southern troops fired on Fort Sumter the Federal government required large sums of money to finance the Civil War. A Special Session of the Thirty-Seventh Congress (July­–August 1861) attempted to meet this need by increasing certain customs duties, imposing a direct tax of $20 million on the States, and instituting an income tax.[1]

It soon became clear that these measures alone could not relieve the country’s financial burdens. Secretary of the Treasury Salmon P. Chase was hoping to raise $85 million and sent a bill to the Thirty-Seventh Congress. Congress, which reconvened on December 2, 1861, reviewed his request for a small increase in the income tax and excise taxes on manufactured goods. Distilled spirits, malt liquors, cotton, tobacco, carriages, yachts, billiard tables, gross receipts of railroads, steam boats and ferries, and playing cards all became taxable items. Signed by President Lincoln July 1, 1862, the measure became effective the following month.[2] By the 1870s Congress had repealed most of the excise taxes; the liquor tax, however, has remained in effect until today. The Internal Revenue Act of 1862 marked the entrance of the federal government into the affairs of the liquor industry; it has never left.

The federal government did not regard the liquor industry as an ordinary business. Alcohol was more than a manufactured item — officials saw drinking as a luxurious, even evil, habit that deserved a heavy tax. Ignoring the mixed history of ante-bellum attempts at taxation, collection, and sumptuary legislation, Civil War legislators assumed that an excise on distilled and fermented beverages would raise a large amount of much needed revenue.

Civil War legislation of 1862 established the federal system of taxation of alcoholic beverages. At that time, the government instituted excise taxes on liquor, tobacco, and other items as well as imposing an income tax. Most of these Civil War taxes were short lived; the liquor and tobacco taxes were permanent. Until the imposition of the federal income tax in 1913, liquor taxes generated a significant portion of the nation’s internal revenue and played an important part in maintaining the economic health of the country.

Taxation provided the context for an explicit relationship between the state and industry, a pattern that would become more common later in the century. For the liquor industry as a whole the relationship did not develop smoothly. Throughout the nineteenth century, mismanagement and politicization of the Bureau of Internal Revenue led to fraud and corruption. The government did not seek and could not maintain regulatory power over the liquor industry. Although several individuals devoted themselves to reform efforts, officials failed to develop or maintain long range plans for efficient tax collection. Within this context, the brewing industry developed a good working relationship with the Bureau of Internal Revenue and was able to hold the line on tax increases”

[1] U.S. Department, Internal Revenue Service, History of the Internal Revenue Service 1791-1929, prepared under the direction of the Commissioner of Internal Revenue, (Washington, D.C.: U. S. Government Printing Office, 1930), 2.

[2] Ibid., 3; Charles A. Jellison, Fessenden of Maine: Civil War Senator (Syracuse, N.Y: Syracuse University Press, 1962), 149; Leonard P. Curry, Blueprint for Modern America: Non-Military Legislation of the First Civil War Congress (Nashville: Vanderbilt University Press, 1968), 149–181; Bray Hammond, Sovereignty and an Empty Purse: Banks and Politics in the Civil War (Princeton: Princeton University Press, 1970), 52; Charles Estee, The Excise Tax Law (New York: Fitch, Estee, 1863), passim.

©All Rights Reserved. Do not reproduce without the permission of the author. Amy Mittelman, 2022.

 

Peoria Beer

When we were dealing with the flood in our basement because of tropical storm Ida, many of my files were damaged. We were able to save the files that pertain to my current book on faculty wives. Two other file drawers were also wet. Most of those files were either materials from nursing school or from Brewing Battles. Nothing smells worse than wet paper so we threw most of it out.

One thing we saved was a Works Progress Administration (WPA) catalog about breweries in Peoria, Illinois. This was very interesting to me because I think of that area of the country as being a distilling center. Whenever I have a question about brewing or distilling that I can’t answer from my own knowledge base or from Brewing Battles, I turn to the indispensable Dictionary of the History of the American Brewing and Distilling Industry, by William Downard. This is a phenomenal source but since Downard compiled it in 1980, it needs to be updated with new entries for craft beer and micro distilling.

Downard has an entry about Peoria distilling but nothing about Peoria brewing. Chicago, the largest city in Illinois, did have a substantial brewing industry but was never a center of brewing like Milwaukee or New York.

One of the breweries described in the WPA document is Gibbs which existed in Peoria from 1881 to 1954. John M. Gipps, Willis H. Ballance and Leslie Robinson were the incorporators. Each owned one-third of the corporation amount of $150,000. Eventually Ballance owned the brewery. He died in 1913. His son, Willis H Balance, Junior ran the brewery from 1912 to Prohibition. The company’s most well-known beer was Amberlin.

During prohibition, the company manufactured, among other things, non-alcoholic beverages, chemicals, and Illuminating gas. After Repeal, the company re-incorporated. In 1954, Canadian Ace Brewing of Chicago purchased Gibbs and moved the brewing of Amberlin to Chicago. You can read more about Gibbs here. It was fun to learn about Gibbs and in the future, I may write more posts about Peoria breweries.

Information for this post came from  the Peoria Historical Society as did the photograph. You can find out more about them here.

Michigan Beer

I recently finished reading a book about sex discrimination at the University of Michigan in the 1970s. The same day, a news item about craft brewing in Michigan appeared in my Google alerts. You can read that here.

Stroh’s was Michigan’s largest brewer. Here are some excerpt’s from Brewing Battles about that brewery.

Detroit had thirty-three breweries in 1890. Stroh’s was the most famous and long lived; the owners were descendants of Germans who had been brewing since 1775. By selling ice cream as well as beer it existed as an independent brewery until 1999.[1]

One of the most significant transactions which indicated that brewing was moving firmly away from its nineteenth century heritage occurred on June 10 1982, when the Stroh Brewing Company of Detroit purchased Schlitz. Stroh’s, a long established regional brewery based in Detroit vaulted itself into the first tier of the industry by acquiring Schlitz, one of the country’s largest brewers. Donald Shea, a vice-president of the USBA at the time of this acquisition, assessed the deal and its implication for the industry as “constant concentration within the industry, and as that happened, more and more larger breweries were building up their own shops.”[2]

Competition in the industry continued unabated even while brewing organizations sought reductions in taxes and campaigned against various neo-temperance initiatives. In 1996, Stroh’s continued its ascent into the top tier by purchasing Heileman Brewing. Heileman had made a run at achieving top tier status in the 1980s, but the Justice Department had halted its program of aggressive acquisitions. Russell Cleary, the son-in-law of Ray Kumm and his successor, spearheaded the expansion of the company. Stalled, the company became vulnerable; 1987 Alan Bond, an Australian investor, purchased the nation’s fourth largest brewer. In 1992, Bond went to jail for fraud in connection with a deal to save an Australian bank.[3]

In the 1980s Heileman brewed many different brands of beer including Old Style, its original product, Lone Star, Schmidt, and Carling Black Label. The company was responsible for forty percent of all the new brands in the decade.[4]

In 1991, Heileman developed yet another new product, Power Master, which was a malt liquor with 5.9 percent alcohol; most malt liquors contained 5.5 percent, regular beer 3.5 percent. African-Americans and Hispanics were the core market for malt liquors. Heileman’s marketing featured a young black man. The tagline was “bold, not harsh.” African-American political and community leaders objected to the beer and its marketing. Eventually BATF intervened and prohibited the company from marketing Power Master. The agency felt the name was a subtle attempt to convey the strength of the beer to the public.[5] Heileman’s marketing struggles indicated how far the brewing industry had come from the self-regulation policies that they had pursued from the 1930s on.

The USBA had always stressed restraint in marketing. The Nebraska plan that brewers developed during Repeal was the cornerstone of their approach. Increased competition in the industry and the diminished influence of the USBA led individual brewers to be bolder in their advertising. The specter of Prohibition had diminished.

In 1996, Stroh’s, planning to buy Heileman, was the country’s fourth largest brewer. Coors, in third place, had 10.1 percent of the market. Stroh’s and Heileman’s combined market share would be a little over nine percent. Stroh Brewing Company had been in existence for 149 years; in 1999 the company sold its brands to Miller and Pabst. Pabst got Schlitz. This sale marked the completion of forty years of consolidation of the brewing industry. The dismantling of Stroh, which employed 2,800 people, gave Miller and Anheuser–Busch seventy per cent of the market.[6]

 

[1] William H. Mulligan, “Stroh Brewing Company,” in Blocker et al., Encyclopedia, 598-600; Downard, Dictionary, 56-57, 185-186.

[2] “Shakeout in the Brewing Industry”; Shea interview, 2005.

[3] “Heileman’s Aggressive Style,” New York Times, August 15, 1979, D1; “Alan Bond Gets Jail in Australia,” New York Times, May 30, 1992, 35; Bob Skilnick, “Heileman, G., Brewing Company,” in Blocker et. al, Encyclopedia, 292-293.

[4] Philip E. Ross, “Bid for Heileman Spurs Stock,” New York Times, September 5, 1987, 31.

[5] Anthony Ramirez, “U.S. Is Challenging New Heileman Label,” New York Times, June 21, 1991, D15; “The Threat of Power Master,” New York Times, July 1, 1991, A12; “Heileman Told It Can’t Use the Power Master Name,” New York Times, July 2, 1991, D6; Kurt Eichenwald, “U.S. Rescinds Approval of A Malt Liquor,” New York Times, July 4, 1991, D3.

[6] Robyn Meredith, “Stroh to Buy Heileman in Big Brewery Deal,” New York Times, Match 1, 1996, D2; “Last call: Detroit-based Stroh Brewery will sell beer brands to Pabst, Miller,” Minneapolis Star Tribune, February 9, 1999, 3D http://www.elibrary.com/education (accessed January 23, 2001).

© Copyright, Amy Mittelman 2021

 

Workers and Unions

Union House and Union Bar Cards used in earlier years. Courtesy of UniteHere.

Workers at the Bessemer, Alabama, Amazon warehouse are trying to form a union. The story has gone national with both President Biden and Senator Marco Rubio weighing in on the side of the workers. Amazon has engaged in hard-ball anti-labor tactics in the past and we can assume they will pursue that course in Alabama.

Union membership and ensuing political power has been declining for years. Labor law most often favors the employer rather than the employee. The Bessemer workers hope that if they succeed this will prompt other Amazon workers in different parts of the country to attempt unionization as well.

Here is an excerpt from Brewing Battles about the brewery workers union in the late 19th century.

In the 1870s, the number of breweries in America reached a record 4,131 and by 1890, output had risen to over 227 million barrels from 3 million at the end of the war. Although there were breweries throughout the country, the business concentrated in urban areas. Lack of appropriate refrigeration made far flung distribution of beer impossible. Demographics also played an important role. Urban areas, with their large ethnic populations, particularly German, were the perfect marketplace for brewers. As a result, certain cities, such as New York, Milwaukee, and Chicago became brewing centers. In the South beer drinking and brewing did not really take hold perhaps because of the small immigrant population there as well as persistent illegal distilling or moonshine.[1]

Urban areas had the most breweries and also the most workers. Cities became the focal point of emerging labor and union activity. In 1886 the newly founded United Brewery Workers (UBW) engaged in a boycott of Peter Doegler Brewery, Brooklyn, New York. Boycotts, as well as union labels, were major weapons in ongoing union struggles with the brewers. A mass product such as beer befitted the use of both strategies. Working class-drinkers contributed greatly to the sales of malt liquors, which they purchased from local brewers. The boycott had originated in Ireland around issues of land and rent. Irish-American radicals adopted the concept of social ostracism which was the foundation of the tactic. The boycott was one element in the social adaptation of immigrants to their new world. Boycotts, parades, and mass demonstrations “provided opportunities for immigrant workers to participate in familiar patterns of protest and recreation.”[2] Pervasive in labor struggles in the 1880s, boycotts and the practice of social ostracism often went hand-in-hand. Both worked best in neighborhoods and small communities and helped foster consumer consciousness. The UBW strove to increase class consciousness.

The new union successfully negotiated a contract with the Brewers Association in the spring of 1886 which gave workers a weekly wage of $15 to $18 for a six day week, 10 hours a day. The young organization had certainly gained an “extraordinary victory.”[3]

1886 was a good year for brewery workers nationwide as unions developed in Baltimore, Chicago, New Jersey, St. Louis, Philadelphia, Detroit, San Francisco, and Buffalo. Many of the unions operated under the auspices of the Knights of Labor. In California Alfred Fuhrman, a sailor and the Federated Trades Council organized the Brewers’ and Maltsters’ Union of the Pacific Coast. Through a boycott of one San Francisco brewery, Fuhrman organized workers in five companies and achieved support throughout the Coast area.[4]

Brewery workers used tactics like the boycott and the union label to encourage workers from other industries to support their struggles with management. The UBW sought to build a strong union and to fully legitimate organized labor in the brewing industry. Towards that end, in conjunction with boycotts, the brewery workers and other unions promoted the concept of “union labor” which implied cooperation with pro-union management against anti-union owners. The average brewery laborer had a hard and grueling life before the advent of the union movement yet the UBW won changes in working conditions, hours, and wages more easily than they did advancements in recognition and jurisdiction. The early successes of the union in gaining ten hour days and increased wages in various cities served as the prelude to ten years of fighting with the brewers and the Brewers Association for union legitimacy.

Many unions formed in the 1880s evolved from strong craft heritages and traditions. Brewing, in many ways, was a traditional occupation; brewers certainly sought to present their business to the public in this light. Yet, at least since the Civil War, brewing required primarily unskilled and thus replaceable labor. The second convention of the UBW recognized this fact of life. Although the union strongly supported the hiring of experienced brewery workers over inexperienced ones, the convention proposed an inclusive union for all workers and trades in the industry; an industrial union. Organizing all the workers in an industry made it more difficult for management to break strikes. Thus the UBW consisted of beer-drivers, maltsters, firemen, and engineers, and became the first industrial union in the country to survive. This commitment to industrial unionism would lead to chronic jurisdictional difficulties with other unions and the American Federation of Labor (AFL). The union sought to organize all workers in the industry, yet it did not consider distillery workers as part of its jurisdiction. On this point the union agreed with the brewers’ view of division within the liquor industry.[5]

[1] For information about moonshine and illicit distilling in the South after the Civil War, see Wilbur R. Miller, Revenuers & Moonshiners: Enforcing Federal Liquor Law in the Mountain South, 1865-1900 (Chapel Hill: University of North Carolina Press, 1991).

[2] Michael A. Gordon, “The Labor Boycott in New York City, 1880-1886,” Labor History, 16 (Spring 1975), 194.

[3] Schlüter, The Brewing Industry 117; Gordon, “The Labor Boycott in New York City,” 213.

[4] Schlüter, The Brewing Industry, p 117-127; Ira Cross, A History Of the Labor Movement in California, 191-192.

[5] James Morris, Conflict Within the AFL, A Study of Craft Versus Industrial Unionism, 1901–1938, (Ithaca, N.Y.: Cornell University Press, 1958), 20. Another name for the UBW was National Union of United Brewery Workmen of the United States.

 

Shelton Brothers

Earlier this month, the big news in craft brewing was the closing of beer importers, Shelton Bros. The company existed for twenty-four years and were early importers of craft beers. They introduced America to different beer styles, such as sour beer. The company’s bank pushed them into liquidation; a victim of COVID-19 and the recession. You can read more about the closing of Shelton Bros. here.

I found this news interesting  because of a personal  connection to the firm. One of the Shelton brothers is Will. He is the dad of Zach and Max who are among my son Alan’s best friends. I have  known Will for over twenty years.

For a while he owned a brewery in Western Massachusetts, High and Mighty, which made great beer. I gave a book talk about Brewing Battles at the Jones Library and we served Will’s beer.  The brewery only lasted a few years and then Will moved to California. There, for a while,  he worked with Pete Slosberg from Pete’s Wicked Ale.  He then started a new brewery, Concrete Jungle. Will is now back in Massachusetts.

The demise of Shelton Bros. reflect changes in the brewing industry. The country has over 7,000 breweries. Many of them are very local and supply farm to table restaurants. American brewers now make many of the unusual and exotic styles that Shelton Bros imported, making them less competitive. You can read more about Shelton Bros, in an article from 2017 by Andy Crouch.

 

Schaefer Beer

Pabst, which does not brew any beer but owns the rights to many iconic brands from the 1950’s and 60’s, is bringing back Schaefer Beer. Schaefer is associated with Brooklyn, but it is not being brewed there. F.X. Matt in Utica, N.Y. is producing the beer. You can read more about it here.

This is an excerpt from Brewing Battles, about Rudy Schaefer and Schaefer beer during World War II.

Rudy Schaefer, the owner of Schaefer Brewing, had become president of the USBA in 1941. Schaefer Brewing had begun in 1842 and was one of the country’s first lager brewers. Frederick and Maximilian Schaefer emigrated from Russia and eventually operated a brewery near Grand Central Station. Rudolph, Maximilian’s son, took over the brewery in 1912 and moved it to Brooklyn in 1915. During Prohibition, Rudolph Schaefer died, and his two sons, Frederick and Rudolph, Jr. took over. In 1927 Rudy, a Princeton graduate, gained sole control of the brewery. Having survived Prohibition, the company expanded with additional plants in Baltimore and Albany. In 1938 the brewery produced one million barrels and was consistently one of the nation’s top ten breweries. Rudy Schaefer was a long time participant in the USBA.[1]

At the beginning of 1942, Schaefer, in his capacity as president of the USBA, offered his assessment of the state of the brewing industry and its planned participation in the war effort. The good news was that “public acceptance of beer as an essential food” had increased. Tax increases were a less positive development. Schaefer maintained that the industry could not withstand any additional taxes, and that an increase would have a diminishing effect on federal revenue. After all, the industry paid over four hundred million dollars in state and federal taxes in 1941, making beer brewing the fourth most heavily taxed industry in the country. Despite this strong participation in the country’s economy, Schaefer wanted the industry to make a specific contribution to the war effort, and pledged sales of defense bonds to all of the over 60,000 employees in the industry. On a personal level, Schaefer became vice-chairman of the carbonated and fermented beverage committee of the Red Cross War Fund of Greater New York.[2]

[1] Jos. Dubin, “The War’s Effect,” Modern Brewery Age, December 1941, 8-9.; Downard, Dictionary of the History of the American Brewing and Distilling Industries (Westport, CT: Greenwood Press., 1980), 166; F. & M. Schaefer Brewing Company, To commemorate our 100th year : the F. & M. Schaefer brewing co. : America’s oldest lager beer (Brooklyn, N.Y. : The Company, 1942); Will Anderson, The Breweries of Brooklyn: An Informal History of a Great Industry in a Great City (New York,: Anderson, 1976), 6, 7.

[2] Modern Brewery Age, January 1942, 18, 82, 85; “Beer is Accorded Wider Acceptance as a Food, Says President of Brewers,” New York Times, January 2, 1942, 39.

© Amy Mittelman October 7, 2020.

Here is Louis Armstrong singing the Schaefer Jingle, from MjayzToonz:

The Liquor Industry and COVID-19

At the beginning of the year, thing were looking pretty good for all segments of the brewing industry. Local and state municipalities see craft beer as an important economic driver, That’s why a tax cut was part of Trump’s disastrous tax bill and why this year the industry got an one year extension for that tax reduction. Then COVID-19 happened.

Most states have closed bars and prevented restaurants from providing in house service. They are allowed to provide grab and go service. How has this affected brewers and distillers?

Here is a roundup of articles about how the liquor industry is faring during the pandemic. Like everything else in our society, regulations surrounding certain practices are being  loosened or abandoned. When this is over, many thing will be different.

Deschutes Brewery has laid off  over 300 workers and is not presently offering any to-go services.

The governor of Rhode Island  issued an executive order  that allows limited sale of beer and wine when people are getting takeout from restaurants.

Last Saturday, some Milwaukee brewers had a pop-up  brewery drive-through in a parking lot.

Before the virus, only  twelve states allowed  delivery of all  kinds of liquor while thirty-one states allowed  delivery of beer and wine. This article is arguing for a permanent change in these regulations.

Reminiscent of Prohibition, distilleries are producing hand sanitizer. The relief bill passed last week allows distilleries to do this without having to pay the excise tax.

I hope everyone is safe and stays well.

Hallmark Does Hanukkah

This holiday season both Hallmark Channel and Lifetime have produced Hanukkah movies along with the usual staple of Christmas movies. Calling something a Hanukkah movie would imply it was about that holiday and its celebration. The three movies had different degrees of success in meeting that standard.

Only one of the Hallmark movies, Double Holiday, was about celebrating Hanukkah and it was the best of the three. Rebecca and Chris are coworkers who must produce a holiday party for their company. How well the party does will help determine which one of them gets a promotion. Because the eight days they have to prepare coincides with Hanukah, the two wind up celebrating together.

Rebecca celebrates with her family and Chris appreciates their warmth and sense of social obligation. The Hoffman’s only exchange gifts one night and the other nights are dedicated to charity and volunteering. Chris is open to learning about Hanukkah; in the course of the movie the blessing for lighting the candle is recited three time.

The movie stresses that people celebrate in different ways. This is at least a tacit acknowledgement that the fantasy Christmases of Hallmark movies is not for every one. Although Double Holiday did, to some extent, equate Hanukkah and Christmas, it was respectful of Jewish traditions. The plot did not involve Rebecca coming to love Christmas, rather Chris came to a better understanding of Hanukkah.

The other two movies, Lifetime’s Mistletoe and Menorahs and Hallmark’s, Holiday Date are both Christmas movies that include a Jewish person.  Holiday Date was the worst. It has a convoluted, unrealistic plot and verged on being condescending and patronizing about Hanukkah.

The best thing about watching these three movies was that I heard “Hanukkah Oh Hanukah” sung multiple times and heard the candlelight blessings several times as well. Double Holiday had the extra bonus that no Christmas music was played.

***********Happy Holidays! Merry Christmas!***********

***********Happy Hanukkah! Happy New Year!**********

 

Maine Beer

I recently read an article about Maine beer. The state is second, after Vermont, in the number of breweries per capita. Maine has over 80 breweries.[1]  Maine’s love of beer is a recent development. Here is an explanation from Brewing Battles.

“In Jacksonian America, the various states regulated the retail sale of alcohol, placing license fees on dealers as a minimal control on consumption. The growing temperance movement attacked the license system as inadequate and advocated new legislation. By 1850 reformers had moved from local control of liquor sales to statewide prohibition.[2] In every northern state except New Jersey and Pennsylvania legislators enacted or popular referenda passed “inclusive prohibitory or constitutional measures.”[3]

“In the 1850s, no state had the police capacity to enforce the provisions of this legislation, known as the Maine Law. As a result, advocates of the legislation created extra-legal groups, ostensibly to gather evidence and swear out complaints. Unfortunately, the “leagues” often overstepped these boundaries, generating violence. Both retailers and drinkers refused to accept the legitimacy of prohibition legislation. Liquor sellers organized to fight the Maine Law and the extra-legal enforcement “leagues,” and German and Irish immigrants opposed the law for cultural and economic reasons. The working class as a whole also resisted state intrusion into customary behavior.”[4]

Maine was the first state to pass such a law. Most states repealed the legislation by the 1860s. Maine repealed its law temporarily but reinstated it in 1857 and didn’t repeal it until 1934.[5]

Today, however, Maine is a poor state and beer is a source of reliable revenue. You can go on a Maine Beer trail and visit some of the over 80 breweries. We will be in Maine in August and I plan to visit at least of few of the breweries on the trail. I’ll let you know about the results.

 

[1] https://www.craftbrewingbusiness.com/news/infographic-what-states-have-the-most-breweries-per-resident/

[2] Tyrrell, Sobering Up, 226.

[3]; The Cyclopaedia of Temperance and Prohibition, (New York, 1891), 275–361.

[4] Tyrrell, Sobering Up, 290–307.

[5] William L. Downard, Dictionary of the History of the American Brewing and Distilling Industries (Westport, CT: Greenwood Press, 1980), 17.

New Jersey Brewing

New Jersey is tied with Kentucky as the states which have experienced the greatest growth in the craft brewing industry. You can read the article about this here.  What follows are a few excerpts from Brewing Battles about three prominent New Jersey brewers.

Gottfired Krueger Brewing Company

Beginning in 1935, brewers produced canned beer.[1] The American Can Company had developed a viable beer can prior to Repeal. The company lined the can with enamel, thus earning the designation “keg-lined.” In 1933, the Gottfried Krueger Brewing Company of Newark, New Jersey engaged American Can to produce cans. The can company produced a trial run of two thousand Krueger Special Beer cans which contained 3.2 percent beer, the alcoholic content allowed by the modification of the Volstead Act. The test market approved of the taste of beer in cans, and Krueger went on to produce a line of canned beer which the company put on sale in Richmond, Virginia on January 24, 1935.[2]

The Gottfried Krueger Brewing Company dated from 1852. Its original name was Braun & Laible. By 1865 the name had changed to Hill & Krueger; Gottfried Krueger took over in 1875. In 1889, the brewery became part of the U.S. Brewing Company, Ltd of New York, a British brewing syndicate. After Repeal, Krueger reopened. A regional brewery, despite its’ brief moment of fame for canned beer, Krueger’s closed in 1960. Narragansett purchased the brand; when Falstaff purchased Narragansett, Krueger became one of its products.[3]

Krueger can. Photo courtesy of Brewery Collectibles Club of America.

 

Feigenspan Brewing Company of Newark

During the early years of Prohibition, Christian Feigenspan headed the Brewers Association Feigenspan was the head of a Newark, New Jersey brewery bearing his name. Prior to Prohibition the company had gained control of the Dobler Brewing Company, Albany, New York and a New Haven brewery, the Yale Brewery. The company resumed brewing following Repeal. Ballantine bought the firm in 1944; Dobler beer was produced into the 1960s. .[4]

Peter Ballantine & Sons

One of the country’s most long lived ale brewers also had its origins in the antebellum period. Peter Ballantine, an immigrant from Scotland founded Ballantine Ale in Newark, New Jersey in 1833. By 1877, it was the nation’s fourth largest brewer and the only one that brewed ale exclusively.[5]

Prohibition had led to the closing of many breweries; during Repeal, the industry experienced growth and decline simultaneously. Some established brewers started up again, new breweries formed, and others attempted to reopen but failed. P. Ballantine and Son, New Jersey’s largest brewer in 1914 and one of the nation’s few English ale brewers, faced this fate. Although the company had planned to open following Repeal, the stockholders ultimately decide to sell their interests. Carl and Otto Badehausen bought the company and retained the name. Ballantine continued as a successful post-Prohibition brewery until the 1960s. Falstaff purchased the brand names in 1972.[6]

Falstaff Brewing was seventh in 1950. In 1972, Falstaff purchased Ballantine which also gave the company the brands of the Christian Feigenspan brewery of Newark, New Jersey. The main brand was Munich. Feigenspan headed the USBA during Repeal. In 1975, Paul Kalmanovitz, head of General Brewing (S & P Corp) gained the controlling interest in Falstaff Beer. Falstaff Beer continued as a corporate entity with its own breweries until 1990 when the last brewery in Ft. Wayne closed. It is now an apartment complex. By that time S & P also owned Pabst. Small amounts of Falstaff beer were available for sale until 2000. The shield trademark was over one hundred years old.[7]

 

Falstaff Brewing Corporation, Logo from 1933–1940. Photo courtesy of Pabst Brewing Company.

 

 

[1] Stanley Baron, Brewed In America: A History of Beer and Ale in the United States (Boston: Little, Brown and Company, 1962) 323.

[2] Downard, Dictionary 64; “Beer Can History: The World’s First Beer Can,” Brewery Collectibles Club of America, www.bcca.com (accessed  July 17, 2007).

[3] Downard, Dictionary, 105.

[4] Downard, Dictionary, 74.

[5] “Ballantine Ale,” Falstaff Brewing Corporation, http://www.falstaffbrewing.com/index.htm (accessed January 13, 2006).

[6] Modern Brewery, July 1933, 73; Downard, Dictionary, 15.

[7] “The History of Falstaff Brewing,” www.falstaffbrewing.com (accessed January 24, 2007).

 

 

 

 

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