As we speak is the birthday of Rudolph J. Schaefer Jr. (July 9, 1900-September 2, 1982). Nicknamed “Rudie,” he was the great-grandson of Rudolph J. Schaefer, who was the son of Maximilian Schaefer, and he, alongside together with his brother Frederick, based the F&M Schaefer Brewing Firm in 1842. Rudie’s grandfather Rudolph turned the president of F&M Schaefer Brewing in 1912, and continued in that place till his demise. He additionally purchased out his uncles and their heirs, and managed the whole firm, which allowed Rudie to grow to be president in 1927, a place he held till retiring in 1969.
An enormous a part of Schaefer’s life, as huge or greater than his operating the brewery, was yachting, which he was enthusiastic about all his life.
However maybe the perfect account was written by Rudolph J. Schaefer, Jr. and is Chapter IV of The Schaefer Story weblog:
It’s evident from our way of life and actions that the repeal of the Volstead Act not solely saved the Schaefer Brewing Firm from collapse, however resulted, in subsequent years, in its progress and profitability.
However to return: Ultimately, the Sebastion Somers Brewing Firm got here into Friedrich and Maximilian Schaefer’s arms. How that happened, I don’t know. Maybe the proprietor had no problem. My grandfather, Maximilian, got here to America with the components for lager beer. The phrase, lager, in German means storage place. It was used to outline beer which had been aged for weeks or months. Lager beer is distinct from ale, however, generically, ale known as a beer.
My grandfather was the primary brewer to make lager beer on this nation. This he did after he and Friedrich had taken over the little Somers brewery. Hitherto, all brewers made what everyone knows as ale–porter, ‘widespread beer.’ Heavy, bitter and utterly missing in sparkle, ale was drunk at room temperature. Certainly one of our outstanding promoting slogans was ‘America’s Oldest Lager Beer Brewers.’
In 1842, Friedrich and Maximilian Schaefer shaped the F. & M. Schaefer Co., a partnership. We now have a ledger entry of their first sale–5 gallons of beer. I discovered the next account written years in the past of Friedrich and Maximilian’s partnership in my father’s papers.
‘On a blustery day in February, 1848, Friedrich and Maximilian Schaefer hoisted some casks from their cellar and have become the primary brewers in New York to place lager beer available on the market. Most brewers, who produced English-type beers and ales, didn’t see the handwriting on the barroom flooring.’
The fast-growing demand for the Schaefer product appeared to blunt the troublesome years because the blossoming partnership took root 5 years earlier in a small brewery on decrease Broadway.
It was barely a month after the Schaefer brothers started operations that New York Metropolis celebrated a blessed water occasion. The brand new Croton aqueduct now provided a free present of water, via pipes extending downtown, for individuals, for firefighting and for business use.
The joyous information gushed all through each a part of the town with its common tone. Regardless of the very fact there was “Water, water all over the place,” the Schaefer brothers felt considerably like throat-parched “Historic Mariners.”
Their brewery had no reference to the Croton water, and, it turned out, they needed to pay a neighborhood grocer $20.75 for a yr’s provide.
With the approaching of chilly climate, malt-liquor patrons shifted to heavier brews. The Schaefer brothers joined in and bought their first robust beer in November. The worth was larger than for small beer, a whopping $2.25 for 15 gallons, as towards $1.50.
Work in a brewery in these formidable days was exhausting. It took muscle. Brewers pulled, pumped, lifted and stirred by hand, working as a lot as 15 and 16 hours a day, and the Schaefers have been no totally different. Brewing additionally took talent. A brewer missing devices trusted his senses of sight, odor, style and contact to guage the situation of his combination in following his personal method.
The Schaefer brothers managed these first few years with thrift and willpower, regardless of competitors from the opposite 22 brewereies in Manhattan. Quickly they wanted to maneuver, and in January, 1845, purchased a number of vacant tons on Seventh Avenue between 16th and 17th Streets the place they erected a brewhouse and two brownstones.
As wave upon wave of emmigrants poured in to those shores, lager-type yeast suddently appeared from Europe aboard clipper ships and, acquiring some, the Schaefer brothers revised their manufacturing course of. Shortly after, they launched lager beer. Inside a yr that innovation, the companions started on the lookout for enlarged quarters.
In 1850, they acquired land on 51st Road and Fourth (Park) Avenue, and a part of the previous Beekman property, a fading landmark that led to a rocky cliff. In a six-year interval, that they had moved the brewery 3 times, a sign of the speedy progress of the corporate. Right here, that they had a cavern excavated 30 ft large to make room for a double row of casks and 250 ft deep to accommodate a variety of them.
Producing lager necessitated deep cellars, and chilly areas have been crucial, not just for the storage part of producing, however for storage till supply.
In view of a mounting quantity of manufacturing, the Schaefer brothers counted on a substantial financial savings additionally by making malt in stead of shopping for it.
Breweries all through the nation elevated from 431 in 1849 to 1,269 in 1859, regardless of the ethical fervor of the ‘temperance’ motion, and with formulation of the primary Inner Income Code in 1862, a tool of a Civil Warfare Congress to boost cash, taxation of whiskey, in addition to beer, helped to advertise lager beer’s nationwide success.
Brewers, nevertheless, noticed the potential for arbitrariness and evasion within the laws for tax bites, and subsequently shaped a federation to guard their pursuits and insure uniform obedience to the code.
Frederich Schaefer was named its first treasurer, remaining in that publish for 15 consecutive years. The federation was the genesis of the present-day U.S. Brewers Affiliation.
Consolidating actions in the course of the conflict, the Schaefer brothers closed their Seventh Avenue plant in 1863 and purchased extra floor for the Fourth Avenue operation. That July, the plan miraculously was spared from the onslaught of the Draft Riots, which marked a path of pillage and homicide for 4 days, however someway bypassing the brewery.
With an eye fixed in the direction of progress potential, the brothers later purchased property on 50th Road, between Lexington and Third Avenues and erected a big corridor, referred to as the Terrace Backyard, which turned a mecca of leisure.
Manufacturing on the F. & M. Schaefer Brewing Firm for 1871-72 was 43,847 barrels, placing the companions eighth on the record of main American brewers and second to the Lion Brewery within the New York space.
The Schaefer brothers determined to perpetuate the household enterprise and in late 1877 utilized for incorporation, itemizing $650,000 in capital inventory. Incorporation turned reality on January Four, 1878.
The brewery was constructed on Park Avenue on the land of what’s now St. Bartholmew’s Church. Throughout the road have been their livery stables. The Ambassador Lodge (which later turned the Sheraton East) was additionally erected on that website. A 44-story workplace constructing, 345 Park Avenue, changed the lodge. So the Schaefer brothers had the 2 block fronts from 50th Road to 52nd Road on the east aspect of Park Avenue.
The photographs of the brewery present that a few years previous to 1910 there have been railroad tracks proper on grade on Park Avenue. The brewery, dealing with the railroad tracks, had its grains and supplies shipped by railroad and dropped proper at its doorstep. In the middle of time, the railroad firm made a far-reaching choice to depress the tracks, and, in so doing, it was vital to place short-term bridges each six to 10 blocks throughout the tracks to permit visitors to cross over. About 1911, the tracks have been utterly recessed, and Park Avenue, with an esplanade down its middle, was paved. It had been strictly business earlier than then–previous factories lining the road. The Steinway Piano manufacturing unit was north of the brewery.
When the corporate moved to Park Avenue, the beer was put into giant casks in all probability 6 or 7 ft in diameter and about 7 ft lengthy. Casks have been hauled by horse and wagon to a bit of property the corporate owned on the East River the place there have been pure caves. I don’t understand how my canny grandfather came across them. The beer casks have been saved within the caves for cooling within the ice minimize from lakes and ponds and transported to the caves and allowed to age for a number of months. The beer was mild in physique with a glowing high quality and readability and was served chilly.
When the property the place our caves have been was purchased to construct the trendy River Home condominium constructing, the builders had a horrible time as a result of once they drilled for the inspiration, they fell via into the pure caves which needed to be crammed with a view to help the inspiration of the house constructing.
The beer was then filtered into smaller barrels for supply within the space. The Park Avenue plant consisted of a brewery and an in depth malt home. In 1858, the founders of the corporate, Friedrich and Maximilian, constructed a big four-story constructing, putting in a few of the first refrigerating equipment ever used on this nation. This equipment made potential the erection of beer storage homes above floor.
In 1892, on the 50th anniversary of the corporate, ‘Frank Leslie’s Illustrated Weekly,’ stated of Schaefer beer, ‘It has the fame of fifty years standing for unexcelled high quality, power, age and parity and is the usual beer of the commerce.’ In that yr, we instituted the bottling division.
I’ve listed the stockholders of the F. & M. Schaefer Brewing Firm as of April 20, 1907.
E.C. Schaefer (275 shares)
Emil Schaefer (5)
R.J. Schaefer (313)
George G. Schaefer (274)
Geo. ChaSchmid (1)
Albert Schaefer (50)
Amelia G. Chatillon (250)
Maximilian Schaefer (308)
Rose Okay. Schaefer v. Bertenbach (66)
E.C.S. and G.G.S. Trustees for Rose Okay. v. Burtenbach (134)
E.C.S. and G.G.S., Trustees for Albert Schaefer (200)
R.J.S., Trustee underneath deed of Belief (624)
For a complete of two,500 shares
In September of 1912, my father, Rudolph (now Anglicized) Jay Schaefer, Sr. had the cash to buy his brother Frederick’s youngsters’s pursuits and his cousin’s pursuits within the firm. It was an amicable buyout and a worthwhile one for these relations. He thereby turned president of the corporate and sole proprietor of the F. & M. Schaefer Brewing Firm.
On the 70th anniversary dinner of the corporate, November 23, 1912 my father gave the next speech to the officers and associates of the corporate. It reveals the sensation he had for the lads who labored for the corporate and the corporate itself.
“That is the proudest day of my profession. Additionally it is one of many happiest nights of my life–and lots of of my associates have claimed that I’ve been a fan of nights.
Like lots of you, so have I constructed castles within the air and so did I’ve goals that I felt might by no means be realized, and like many, I, in my creativeness, tried to succeed in objectives which I felt might by no means be reached. However, willpower, perseverance, plugging away, arduous work and a few luck are sometimes rewarded by the achievement of the very issues I referred to a second in the past.
I’m right here tonight, and that is why I anticipate to be right here a number of years longer. I absolutely understand the problem of the duty earlier than us–the various duties, anxieties, cares and obstacles to beat, however I think about God, I’ve confidence in you and in myself.
That’s the reason in taking this optimistic view of the longer term and having this large want to ‘make good,’ I really feel that we will and should succeed. And this night, too, I discover a troublesome activity earlier than me.
I’m to provide a historical past of the Seventy years of exercise of our concern in seven minutes…
Each previous gents [Frederick and Maximilian] and their household got here from Wetzlar. Uncle arrived in 1838. My father got here quickly afterward. They each have been earnest, hardworking, saving males, and the primary monies they amassed have been returned to their mom in Wetzlar who had given them the cash to journey overseas from a mortgage she had positioned on her modest little house. The subsequent monies amassed by them, after organizing the enterprise, introduced over their sisters and brothers, of which just one resides in the present day. Aunt Sattig.
When Uncle and Father established the enterprise, succeeding a person named Sommers in 1842, the capital consisted of some hundred dollars which belonged to my uncle and a few chattels which belonged to my father that weren’t fairly well worth the sum of money my uncle had. To place them on an equal foundation, my father drew a couple of dollars much less every month till such time once they have been equal companions.
Uncle moved into his home [on Park Avenue] and right here his three youngest youngsters have been born. The property which we maintain right here was regularly purchased–some as late as 25 years in the past. Reverse right here, earlier than the secure was constructed, was a row of small homes on Park Avenue. The previous malt home, over which we had a falling out, when not malting was used for a strolling and operating monitor once I was a child. Afterward, John B. and I might use it for a showering institution in the summertime time. Metal tubs! Across the nook was a spot acquainted to all of the previous Columbia School boys–a body home, ‘Fritz’s.’ Uncle Settig’s place, and subsequent to it was the cooper store. Our cellars, ‘Felsen Keller,’ have been at East River and extra beer ran down the gutters in these previous days than many locations promote. These have been the great previous occasions, they usually have been comfortable days.
Every night at 5, we might collect across the previous Sternwirth, and there spend an hour or extra, telling tales and consuming beer. Uncle Jake Schaefer, Spitzer and afterward Moller, have been the wits of our social gathering.
And steadily, structural modifications occurred. The previous ice homes have been turned into chilly storage homes–boilers have been reverse – three Boyle 25-ton machines, and you can hear valves 1,000 ft away. However many issues are as they have been greater than 30 years in the past. Brew home kettles – mash tub – previous engine – all of the beer – previous vats and tanks.
A few of the previous males are with us–and if time has modified them a bit, they’re simply as energetic and constant as within the previous days. No brewing concern on this nation and few in some other, can present such a roster of previous, trustworthy and constant males as we will–and to those males I need to give thanks.
Our brewery shouldn’t be one of many largest, however along with being the oldest is among the many greatest. Its age and standing greater than compensate for lack of largeness and furnish one of the best and most secure basis upon which to construct largely and expansively sooner or later. If the capability of our current plant just isn’t adequate to satisfy the calls for of a clamoring public and the efforts of a properly organized, enthusiastic, aggressive and energetic pressure of well-liked solicitors and brokers, for whom it must be comparatively straightforward to promote a brew concocted by the foremost grasp of fermentology and exponent of the artwork of beeriology, why, there are some vacant tons close to by that may be improved by putting upon them in time probably the most full, trendy and up-to-date brewery on this nation.
Thirty years in the past final Wednesday, I entered the make use of of this concern, starting within the previous malt home on Park Avenue. On the finish of 30 years’ expertise and education, it has been my pleased lot to return to the top of the enterprise during which I began on the backside, and as I strategy the obligations which include the idea of management, I discover comfort each within the information that I shall have about my males, you males, who will help me in fixing the issues and finishing up the work which we will confront, and in addition in time have at my elbow one among my sons who will share with me the labors and obligations of my place. When one appears upon the founding, improvement and progress of a enterprise resembling ours, he’s forcibly reminded of what Tennyson wrote concerning the brook: ‘For males might come and males might go, however I’m going on ceaselessly.’
So is the Schaefer Brewing Firm destined to go on from era to era. Based 70 years in the past by the 2 noble males to whom I referred, perpetuated and carried additional by their sons, it now occurs that a third era of the household is to enter into lively participation within the affairs of our firm and purchase the teachings and expertise which can allow it some day to hold its burdens and luxuriate in its prosperity.
It’s my pleasure and my blessing that I’m to introduce into the enterprise tonight my son, Emile. With him I hope will come new life, new vigor, new concepts and new pressure. I hope it might be given to him to hold on this enterprise till the subsequent era and to proceed these yearly celebrations of our birthday as much as a time when a fourth era will grab the reins and carry the enterprise on to a different era.
Tonight is certainly commemorative of many issues. It offers with the previous. It places us in deep thought concerning the current and it brings up the horizon of the longer term. The previous is safely a matter of historical past. The current is fortunately taking good care of itself. Allow us to flip our faces to the longer term and decide upon concord of thought, unity of motion, singleness of function and sameness of ambition and make all of them inform for the promotion of the most effective curiosity and success of The F. & M. Schaefer Brewing Firm–not for me, not for anybody alone, however for all of us as a result of we’re all crusing in the identical boat and sharing the identical trials and having fun with the identical successes.
A pleasant haven will welcome us all collectively; a damaging storm will convey calamity to every of us. I’m on the wheel for time being and shall endeavor to steer a protected and profitable course. All I ask of you is your conscientious help. With that I’ve no worry for the longer term.”
All the Park Avenue space, to make use of a present time period, was slowly gentrified. Condo homes have been constructed on the east and west sides of the avenue. By 1916, the world was virtually 100% residential, and the business crops such because the brewery needed to transfer. Having purchased out his cousins, my father made the unilateral choice to maneuver the F. & M. Schaefer Brewing Firm to Brooklyn. He bought the property–one block entrance to the church and one block entrance to what turned the Ambassador Lodge. A really profitable sale! It was very priceless property then, however little did anybody dream how invaluable it was to turn into. In 1960, it was appraised as probably the most priceless nook in New York Metropolis at the moment. In 1980, it was appraised as value $100 million.
The transfer to Brooklyn was an enormous determination. My father needed to pull up stakes of what was in these days a pretty big brewery on Park Avenue and set up utterly new headquarters in Brooklyn on South ninth Road and Kent Avenue. The corporate purchased a distillery which was outfitted with the required gear to brew beer. As an alternative of stills, we put in brewing kettles–considerably comparable however used in another way. Metropolis water–Croton Dam water–was used within the Brookly plant. It was and is taken into account very nice water. As well as there was an excellent water provide on Lengthy Island which was fed into the plant and blended with Croton Dam water. That water needed to be watched and examined scientifically to ensure the mix was proper as a result of the New York Metropolis water was considerably totally different from the Croton water. We needed to make changes occasionally.
Most of our staff on the Park Avenue plant continued to work for us in Brooklyn. Subsequently, due to journey time and different occasions affecting the enterprise, our staff got here largely from Brooklyn and Lengthy Island as a result of it was extra handy for them to get to work.
To return. The corporate came across exhausting occasions in 1918. Regardless of sugar and different provide shortages throughout World Conflict I, we managed with barley malt, comprised of a particular high quality of barley. It was a restricted crop used primarily for beer. The opposite ingredient, hop, was robe in higher New York State. The Herkimer County farmers grew a really advantageous grade of hops. Hops have been additionally grown on the West Coast. Through the years, the labor provide in New York State turned scarcer and extra pricey than the West Coast labor. The hop fields upstate regularly dwindled down, and eventually the farmers went out of the hop enterprise solely. All of the American hops grown since World Struggle II come from the West Coast.
Parenthetically, when the Eighteenth Modification abolishing alcoholic drinks was canceled by the Twenty-first Modification, and we began to brew in quantity once more, we tried to help the New York State hop individuals (all the New York State brewers did), however the farmers couldn’t make a go of it; they couldn’t compete with the decrease value of labor on the West Coast. Unhappy.
In 1919, the Volstead Act was handed to strengthen the Eighteenth Modification. Intoxicating drinks have been outlined as containing greater than .5% alcohol by quantity. This ushered within the horrible period of Prohibition. F. & M. Schaefer confronted a disaster–how one can survive.
I don’t know who wrote the next account of that interval nevertheless it was written at the moment and has immediacy.
“OUR HAND HAS NEVER LOST ITS SKILL”
Gloomy patrons jammed inns and bars throughout the land to bid farewell to an previous pal that fateful midnight in January, 1920. Prohibition had develop into regulation. The ‘good previous days’ have been gone.
One state legislature after one other had ratified the Eighteenth Modification and by September, 1918, President Wilson had clamped down on 2.7% beer, halting manufacturing of all malt drinks as of the next November.
In August, 1917, because the flood of prohibition laws rose, Schaefer determined to make a trial brew of non-alcoholic beer. “We-No,” because it was referred to as, bought pretty properly and had offset rising losses in beer gross sales.
When the mantle of Prohibition lastly cloaked the nation, Schaefer tried out numerous ersatz species akin to “Particular Brew,” “Schaefer’s Particular” and “Malt Tonic,” all of them makes an attempt to get as close to as attainable to the allowable cereal beverage, or “close to beer.” These contained lower than half of 1 % of alcohol by quantity.
Unsure as to public response to those concoctions, Schaefer started manufacturing ice to offset losses. This enterprise proved worthwhile and amenities have been optained to end up 100 tons a day. Conversely, close to beer misplaced cash. To ensure of surplus refrigeration, Schaefer determined to supply dyestuffs, inasmuch as color-bearing liquids in such work have been filtered in iced. Underneath the identify of Kent Colour Company, Schaefer made methyl violet. The product claimed a excessive worth, and as Kent prospered, F. & M. Schaefer declined.
Schaefer remained inflexible in his perception that the general public would tire of Prohibition. However he by no means lived to witness the result. He died of pneumonia on November 9, 1923.
His son, Emile, took the helm, and when Emile suffered grave accidents in an auto accident in 1924, Rudy [sic] Schaefer, Jr. got here to the rescue. Recent out of Princeton, Rudy turned gross sales supervisor and gave Schaefer promoting and gross sales new impetus. Gross sales of Schaefer near-beer manufacturers have been largely confined to the summer time months, and to bolster winter gross sales the corporate introduced out Kent Ale and Olde Stout.
Malt Tonic, a Schaefer sleeper, awoke from its lethargy, and salesmen did greatest with it, its sale advancing 50%. Rudy, who had proven a phenominally acute grasp of enterprise, succeeded his ailing brother to the presidency on October 10, 1927. Due to Rudy’s persistent promoting for Malt Tonic, and by advantage of ice gross sales and curtailment of working prices, the corporate managed to make a small revenue in 1929.
The free-spending “Roaring 20’s” introduced prosperity to nearly each business besides brewing. It additionally introduced futile enforcement of Prohibition. It was an period of “bathtub gin,” residence brew, speakeasies, rumrunners, hijackers and gang warfare and murders.
Mounting defiance of the regulation and revulsion of the underworld sparked a drive amongst leaders in enterprise, labor and civic life to clamor for repeal. When the Wall Road bull market crashed in 1929, there was widespread hope that the nationwide melancholy may induce Congress to switch the Volstead Act.
Rudy Schaefer, Jr. wasn’t merely ready. He had an concept to make his close to beer extra engaging. This was to serve “Schaefer on Draught” at Nedick’s orange juice stands. He figured that a passerby who won’t look after a frankfurter and an orange drink, may relish a frank and a beer. The thought caught on, and refrigerated bins have been put in at 5 Nedick stands the next yr, whereas others have been taken by Chock Full O’Nuts.
Whereas repeal was waxing scorching as a political situation, Rudy Schaefer, Jr. set about formulating plans for expenditures on the bodily plant and product and merchandising insurance policies. Though it was nonetheless not permissible to promote beer, he deliberate and subtly carried ahead an aggressive promotional marketing campaign that may bolster Schaefer’s status and win business management.
Earlier than it adjourned in February, 1933, Congress handed a joint decision ot overturn the ‘noble experiment’ of Prohibition. It voted for the manufacture and sale of three.2% beer efficient April 7. That nice day witnessed a rush of the Kent Avenue brewery, and on December 5, President Roosevelt proclaimed ratification of the repeal modification.
Prohibition was lifeless! Comfortable days have been again once more!
Thereafter, enlargement turned the keynote on the Brooklyn brewery. Within the ensuing years, an eight-story stockhouse and new bottling and administration buildings have been constructed. Near $1 million was spent on this spurt of contruction and on different bodily enhancements resembling new brew kettles and mash filters.
Gross sales quantity grew as anticipated, and the plant now was geared to an output of 400,000 barrels, a mark virtually reached in 1934. Rising status and product satisfaction soared firm gross sales to 592,000 barrels in 1936, the yr contracts for cans and machines have been inked. Schaefer subsequently adopted the “steinie,” an instantaneous sales-booster, expecially within the suburbs.
The millionth barrel was drawn on December 22, 1938, in ceremonies attended by key executives, a sworn statement to the truth that for the 13 arduous years between Prohibition advert Repeal, the Schaefer hand had “by no means misplaced its talent.”
In 1921, the relations holdings have been valued at $1,000,000.
A minute of a January 1922 assembly notes that F.M.E. Schaefer was to turn out to be a Director of the corporate (all Administrators to obtain $10 for every assembly), and that the president, Rudolph Jay Schaefer, was to obtain a wage of $6,000 every year.
As was stated within the previous account, the one product the brewers might make had the onerous identify of close to beer. Let’s return a bit and outline non-alcoholic beer. Beer was brewed beneath a federal allow after which dealcoholized. Alcohol was boiled off, and the beer was then carbonated to offer it the top and the bubbles of real beer. It was bought beneath numerous labels because the work ‘beer’ couldn’t be utilized in its identify. Brew was the substitute phrase. We made Kent Brew or Weiner Brew, however the close to beer was all the time bought as a Schaefer product. Schaefer was the model.
Through the years, our largest rival was Ruppert Brewery, Ehret was the second largest. Within the New York Metropolis space, there have been about ten breweries which managed to remain within the enterprise promoting close to beer. My father was revolutionary. He was properly appreciated within the beer fraternity. The house owners of the breweries have been his nice pals. When Prohibition started, he went to various them and stated, ‘Look, we’re not going to have the ability to promote loads of the close to beer product. My brewery has a capability of X, and we might take your manufacturing, produce it at our plant and share the income on an accounting foundation to be developed. You shut your brewery and promote the actual property or no matter you need to do with it, and we’ll make the beer for you.’ Six or seven brewers agreed to his proposal. We have been making beer for breweries you’ve by no means heard of: Fallert, Elias, Central, Huber, and Hoffman.
My father saved them from dropping cash, however the preparations quickly petered out. We’d put their labels on their bottles, however it was all one product. And the joint enterprise shortly died as a result of the brewers didn’t have any direct operation in hand; they didn’t have the contacts with the commerce, taverns and the like. That ended very quick, nevertheless it was yet one more technique of protecting going.
In comparison with the actual beer, it was terrible. It definitely didn’t have a lot intercourse attraction! A number of years earlier than Prohibition was repealed in 1933, we bought many kegs of close to beer to individuals who added alcohol to it and bought it as bootleg beer. That basically had a horrible style as a result of the alcohol was synthetically added. However individuals drank terrible stuff in these days–bathtub gin, for instance.
Fortuitously, we had different merchandise to help us. we had extra refrigeration capability. In my father’s time, he had correctly put in a man-made ice-making plant. Earlier than that, ice was bought by the block. ‘The Iceman Cometh.’ Block ice. Making ice was a worthwhile merchandise. My father, resourcefully, sought one other use for the refrigeration facility. He knew he couldn’t maintain the corporate happening the gross sales of close to beer alone. This was obvious in a short time. He needed to discover one thing else to maintain the plant open or it might shut as so many different breweries had. He purchased the Kent Colour Company which made a dye, methyl violet, used for printing ink. One of many most important elements was dimethylanaline, the primary chemical within the methyl violet. It required refrigeration to fabricate so Kent Shade Company leased a part of the plant to F. & M. Schaefer Brewing Firm to fabricate the dye. A really separate operation from brewing beer. The one factor in widespread was the necessity for refrigeration.
We had purple footprints round–individuals would stroll by way of the dye plant after which come out within the brewing space. Issues have been purple apart from the beer–we managed to maintain that a stupendous golden colour. We by no means made purple beer. That auxiliary dye enterprise was essential as a result of we managed to maintain the corporate going with its income.
I had no want to be a brewer. I needed to be an architect, having majored in structure at Princeton with my father’s blessing. Earlier than I went off to school, I keep in mind sitting down with him one night to ‘take into consideration my future’ as he stated. He needed me to have some concept of what I used to be aiming for. He stated, ‘I used to be born a brewer and my father earlier than me, and so it’s pure that it might make me very glad when you deliberate to comply with that path. I would like you to be very frank as a result of, no matter you do, I’ll again you. No matter is your want.’ And I advised him then I needed to be an architect. He then stated, ‘All proper, fantastic, structure it is going to be.’
When he died abruptly within the Fall of 1923, he was nonetheless of a thoughts that I might by no means go into the enterprise. My brother, Emile, who was eight years my senior, was already within the enterprise. He was not, on the time I got here aboard, in notably good well being. Once I joined the corporate in 1924, proper after I had graduated from school, Prohibition was nonetheless in impact and can be till 1933.
The corporate was struggling once I got here to work there as Vice President and Director. My wage was $three,600 per yr from the F. & M. Schaefer Brewing Firm; $1,500 from Kent Shade Firm and $2,000 from Schaefer Firm. In 1927, once I was 27, I used to be made president and CEO of the corporate with a wage of $7,500, $1,200 and $Four,000 from the three corporations. By 1937, my wage mirrored the corporate’s income–$60,000 per yr. I used to be probably the most lively one; my brother couldn’t give the corporate the time and a spotlight.
Our relationship, each brotherly and professionally, was fantastic. We by no means had an argument. I used to be operating with the ball, and he let me run with it. I valued his judgment and expertise. He by no means disputed my selections, my strategies. There have been durations when he can be in good well being, and he’d be concerned within the enterprise. He all the time had an workplace there, and we might talk about issues and make selections collectively. It will definitely acquired to the purpose the place I needed to do issues my very own approach.
Prohibition was a precarious time, however dealing with the problem was useful. we needed to be very environment friendly and economical so as to hold Schaefer from going underneath. With out my father as my mentor, Emile was all the time my information. In Father’s stead, Jake Ruppert taught me the brewery enterprise. He was all the time ther with canny recommendation, staunch help and encouragement. I’m eternally grateful to him. I had fantastic individuals working within the firm. The brewmaster, the journal supervisor, the workplace supervisor, the monetary man simply adopted me. There was no resentment that I used to be the boss’s younger son. I leaned on them very closely as we struggled to maintain our heads above water. Enterprise had dwindled as a result of our product was close to beer. The quantity had dropped from 300,000 barrels (that’s a unit measurement) a yr right down to 50,000 barrels a yr. And it stored dropping by the yr. We needed to let lots of our staff go, however, thankfully, we stored the important thing males who swung into motion once we have been capable of resume brewing beer.
After I’d been president for a short time, I targeting selling a product that was troublesome to advertise. Close to beer. I might develop new labels, new names and search for some cause to get individuals to attempt the newly-named product. Once in a while, we’d make a bit change within the close to beer’s style. We dubbed a close to ale Kent Ale as a result of the brewery was on Kent Avenue. We made what was referred to as a malt tonic focus which we marketed nearly as good for nursing moms. Something to attempt to hold going!
In 1932, the Democratic Celebration had a beer plank within the get together platform advocating relegalization of beer so we swung behind Roosevelt as a result of that meant the top of Prohibition. Many Republican brewers forged Democratic vote for the primary time of their lives. Roosevelt had a plank within the Democratic celebration platform to legalize beer, and if he was elected, I knew that we might have the ability to brew beer once more. By that I don’t imply repeal of Prohibition. On the power of that, I sought the providers of Batten, Barton, Durstine and Osborn promoting company. The son of the president was a really shut school good friend.
I informed the company that I used to be satisfied that we might begin manufacturing beer very quickly, and I needed to get a leap on competitors and are available our with an promoting marketing campaign to inform the general public that we hadn’t forgotten methods to brew beer. They designed a marketing campaign, a billboard marketing campaign, with the slogan, ‘Our Hand Has By no means Misplaced Its Talent.’ We couldn’t use the phrase beer as a result of it was nonetheless unlawful since Prohibition was nonetheless in impact. We acquired round that by picturing a glass of beer since there was no regulation towards that. I had enjoyable posing for that image–the glass was in my hand. We smeared the town billboards with that advert. ‘Our hand has by no means misplaced its talent’ was a type of telling everybody that we hadn’t forgotten tips on how to make wonderful beer.
It was very profitable. It gave us an incredible bounce. Schaefer was the one firm at the moment to promote beer. we had the entire subject 100% to ourselves. Becaue of our in depth promoting and my curiosity in sports activities, I used to be named by ‘TV Information’ its ‘Sports activities Patron of the Yr.’ We handled BBD&O from that point till I bought the corporate. The brand new administration discharged them after the corporate went public.
The Volstead act was amended in 1933 to permit brewers and wine makers to make beer and wine with a three.2% alcohol content material. There was a definition of what constitutes an intoxicating degree of alcohol, and it was decided to be three.2. We went forward brewing three.2 beer. We knew a few month earlier than it occurred that the Twenty-First Modification to the Structure of the USA can be authorised. That saved our enterprise as a result of Prohibition was outlawed on April 7, 1933.
Earlier than that, we had begun intensive preparation for that welcome occasion which obtained us off to a roaring begin. Our intelligent, educated brewmaster started to make beer. Parenthetically, I by no means needed that position. I by no means went to brewer’s faculty to study the science of brewing; I knew I might all the time rent brewmasters. In these days, a bewmaster was the general boss of the entire operation. He formulated the product; he oversaw the manufacturing of his components; he bought the required components, the hop and malt. He did the hiring and firing. He was central to the success of each and any brewery.
After Prohibition was forged out, I feel I used to be one of many first within the business to get away from the idea of the brewmaster being general head. I separated the technical management man from the manufacturing management man. I dropped the title of brewmaster; I deserted the identify. Our manufacturing supervisor had been the brewmaster, however our technical management man held equal rank. I assumed the brewmaster had an excessive amount of management. That new desk of group was copied by different breweries.
Round 1930, I conceived the thought of merging the 12 main regional brewers of the nation into one nationwide group which I might head. Approval by a number of the brewers approached was a key issue to this proposition. For causes of their very own, multiple declined, and the proposal failed. If it had succeeded, it will have resulted in a enterprise with nice clout. I went to them when Franklin D. Roosevelt was elected president within the Fall of 1932. The depths of the Melancholy.
How did we get by way of the Melancholy? The Twenty-first Modification saved our enterprise. It got here simply in time. We have been nearly right down to our final penny. We had reached the purpose the place gross sales of close to beer have been right down to nothing. The ice and dye enterprise couldn’t maintain the plant. We have been about prepared to surrender the ghost. We had so few dollars within the until that, in preparation for the primary day of sale of beer, I needed to go to the financial institution to borrow cash to purchase the federal tax stamps. In these days, a income stamp needed to be placed on every barrel by hand. There was a tax collector proper within the brewery, assigned to the brewery, to whom we gave the income stamps. We needed to rebuild the F. & M. Shaefer Brewing Firm from a really low, near-bankrupt level.
I used to be turned down by three banks–the three banks we did enterprise with at the moment. I used to be indignant about that. I went to the Nationwide Metropolis Financial institution, now Citibank. I walked in chilly on them with hat in hand and informed them my story on bended knee. They believed in me; that they had religion in me simply from that one chat. They agreed to increase a line of credit score within the quantity of $75,000 for 3 months. We drew solely $50,000 of the mortgage and repaid it in slightly over two months. We by no means needed to borrow all the $75,000 to purchase the tax stamps.
From that point on, Nationwide Metropolis Financial institution, now Citibank, turned the corporate financial institution. We went to the financial institution occasionally for assist in financing our ongoing development and enlargement packages. We had an exquisite relationship, each skilled and private, with Citibank.
On April 7, 1933, we had what was referred to as relegalization because of the repeal of the Volstead Act and we have been allowed to make three.2 beer. three.2 beer was actual beer. Repeal, nevertheless, allowed brewers to make beer with as robust an alcohol content material as they wished. Beer, nevertheless, simply occurred to return out with a three.2 degree of alcohol. A pure fermentation, not because of a managed components.
Our promoting marketing campaign gave us the sector for six to eight months. Gross sales rose quickly. We went from one thing like 250,000 barrels within the first yr to 1 million barrels within the fourth yr. We aged our beer. We needed to construct like mad. We began enlarging our plant capability instantly. We have been constructing on a regular basis, by no means stopped constructing. We needed to borrow lots of capital on a rotating foundation from the financial institution. That was no drawback. All the cash we borrowed went proper into the plant, and our income paid off the mortgage. It was a steady cycle.
By the point repeal got here, we had about 150 to 200 staff. The teamsters, drivers of our vans, elevated our numbers. Engineers and the like needed to be discovered. We needed to construct up a gross sales employees. I employed a gross sales supervisor to construct up a gross sales group, and inside six months, we fielded one thing like 200 salesmen. Our huge promoting marketing campaign was in place by that point. We didn’t use radio; tv hadn’t been developed at the moment. Billboards and print media, newspapers, magazines, have been the retailers we used. We had an interesting marketing campaign, top quality, and it made successful. We had the leap on everybody when it got here to the promoting finish of our enterprise.
To commemorate the primary Million Barrel Yr, a quotation was introduced to F.M.E. Schaefer (my brother) and R.J. Shaefer (me) by the corporate’s 1,000 staff on December 22, 1938. That meant an amazing deal to Emile and me. By 1941, the Brooklyn plant had storage tanks which have been 85 ft lengthy. 900,000 glasses of beer could possibly be saved within the tanks. 500 vans delivered the beer in a radius of 100 miles from the plant–the equal of going all over the world 140 occasions a yr.
By the way, within the thirties, I started to construct, for the corporate, a splendid assortment of ceramic and faience tankards. I purchased a small however wonderful assortment of tankards from the widow of certainly one of Father’s greatest associates. The gathering, courting from the 16th century and up, accommodates 250 tankards which have been discovered by looking throughout Europe and the USA. A museum high quality assortment which was displayed in a room I had designed on the firm workplaces.
I used to be receptive to a request to construct a tavern room recognized by a plaque, ‘Donated by Schaefer Brewing Firm’ on the Mystic Seaport Museum in Mystic, Connecticut. This happened after a name from Philip Mallory, a member of the Mallory household, one of many households which based the Seaport following World Struggle II. He stated, ‘We’re engaged on a restoration of Mystic Seaport. We’ve a number of buildings which we need to erect there or exchange there, and considered one of them is a tavern. I can’t consider anybody who’d be extra curious about that constructing than Rudie Schaefer.’ He requested me to return over and speak about it, and I replied, ‘I’m on my means.’ We mentioned the entire enterprise, and after our assembly, I made preparations for the corporate to revive ‘The Previous Spouter Tavern.’ An enormously satisfying enterprise.
With my information and consent, the curator collected what went into the constructing. I discovered it an absorbing enterprise as a result of it gave me an outlet for my love for conventional American structure and furnishings. To have such a satisfying challenge be such good PR for the corporate was fantastic.
That inspired me (in addition to the corporate) to contribute to the William Pitt Tavern within the Strawberry Banke restoration in Portsmouth, New Hampshire, and to have the corporate give taverns to restorations at Previous Bethpage, Lengthy Island, and Previous Sturbridge Village in Sturbridge, Massachusettes.
Throughout my presidency, Schaefer grew from a small firm to the sixth largest brewing firm in america. We grew technologically refined which enabled us to grow to be a big multi-brewing firm after World Struggle II. On the time I began with the corporate, we not trusted dray horses and wagons. We had motor vans. However, apparently, with the gasoline scarcity brought on by the struggle, we reverted to a horse operation. We discovered an previous secure in New York and went out and purchased horses. I discovered a fellow who might practice and break farm horses to make use of on metropolis streets. Horses that had by no means been shod earlier than.
Our secure in New York Metropolis housed 100 horses. We purchased wagons solely to find that harnesses have been troublesome to seek out. I used to be out scouting for harnesses in all places; they have been very scarce. We needed to practice drivers–teamsters to drive the groups of horses.
That operation turned out to be a horrible ache within the neck in some ways, nevertheless it proved to have large promoting worth due to the favorable press protection. We had a large amount of publicity about our horse operation. F. & M. Schaefer Brewing Firm was perceived to be not solely patriotic however resourceful.
F. & M. Schaefer sponsored the Brooklyn Dodgers on radio and tv for a lot of years. When the Dodgers left New York, we sponsored all kinds of sporting occasions then referred to as the Schaefer Circle of Sports activities. We put up $1,000,000 to construct the Schaefer Stadium in Foxboro, Massachusetts, with the proviso that it’s named Schaefer Stadium for ten years. Sadly, that promise was abrogated after eight years.
Over time, I purchased another crops: The Beverwyck Brewing Firm in Albany in 1950; in 1961 the Commonplace Brewing Firm in Cleveland, one other in Baltimore. The George J. Meyer Malt and Grain Company in Buffalo turned our malt division.
Schaefer did enterprise in Brooklyn, the metropolitan space, and Westchester. We had a wholesale and retail enterprise. We bought bottled beeer to the retail grocer when it was permitted and inside the regulation. We bought to taverns immediately, however solely in areas we might attain with our supply system. In fringe areas, we had distributors, and we might ship truckloads of beer to them. They might, in flip, distribute to the retailers each for on-premise consumption (the restaurant and tavern the place you drank the beer on the premises) and for off-premise consumption. That included retail shops and chain shops which turned massive retailers. Past our fast delimvery zone, promoting the product was finished by wholesalers and distributors.
Schaefer had six or eight branches or distribution facilities. We had one up in Bridgeport; we had one in Fairfield County; we had a number of in New Jersey; we had one in New Rochelle which was relocated in Mamaroneck. All of the beer was made within the Brooklyn plant.
Did it take loads of nerve and optimism to increase that quickly? Was I so positive? Oh, I used to be sure! There was no query about it. We simply went ahead, Gave the horses full rein! Every little thing was go!
The World’s Truthful of 1939 in New York offered us with a wonderful public relations alternative. We made an enormous splash there as a result of we determined that if we needed to be heard and seen, we needed to do one thing essential. Eggers and Higgins have been our architects (as they have been for something we did). We constructed an enormous restaurant, Schaefer Middle, a round construction with one-third of the circumference of the circle an open, stand-up bar. The remainder of the constructing was an enclosed restaurant with some open terraces off of it. 2,000 individuals might be fed at one time. It was an enormous success, and once more, that added to our good identify. As I recall, it was just about self-sustaining. It had nice status and had high quality.
I’d like so as to add that Em, Helene, Lucia and I had tickets for the Truthful’s opening ceremony. Even if we had constructed a $300,000 pavilion, we needed to beg for 2 extra bleacher seats for our wives. We witnessed a milestone as a result of Common Sarnoff of RCA opened the primary tv broadcast in the USA of that event at which President Fanklin D. Roosevelt gave the opening handle. The primary president of the USA to seem on tv.
Our rivals had pavilions however nothing like ours. They have been also-rans. They noticed what we have been doing, they usually copied us by subsidizing different eating places the place they bought their product. These weren’t high-class operations in any respect. Ours was excellent. Completely ours; re ran it; we managed it.
Based mostly on our expertise with the ’39 Truthful, we commissioned an impressive construction for the second World’s Truthful in 1964, once more designed by Eggers and Higgins. Once more, it was completely owned and operated by The F. & M. Schaefer Brewing Firm. We needed to do one thing uncommon as a result of we knew we needed to compete with many uncommon buildings and reveals. So Eggers and Higgins got here up with what amounted to a balloon roofing–a floating roof–air bubbles. We had lots of issues with it, however it was, as we ordered, uncommon and brought about a lot remark. That’s precisely what we needed. The floating balloon roof symbolized the froth on prime of a glass of beer.
We had a round motif at the moment. Our bottle labels have been round; once more, every thing was round together with the bubbles on the roof. Many, many footsore guests to the Truthful welcomed an opportunity to take a seat down and have a chew to eat and a chilly glass of beer in a cool, engaging restaurant centrally situated on the Truthful grounds. Our product was good!
As a result of I had been educated to be an architect, I beloved doing the 2 Truthful pavilions. And, too, promotional concepts got here naturally and simply to me. I assume I used to be a born salesman. Most essential to me was constructing a top quality picture for Schaefer. I succeeded in doing that within the many sides of my enterprise profession, however having the corporate recognized for its high quality in all operations gave me probably the most satisfaction.
We went by way of a really dangerous expertise in 1949 with a labor strike that lasted two days in need of three months. The Brewery Staff Union–which subsequently turned the Teamsters–struck. As much as that point, we’d had solely spasmodic labor hassle. Sniping. There have been continuous small issues. Should you’re unionized, there’s all the time an issue.
I had a nasty expertise, which prompted me to shut the workplace. I drove as much as the workplace one morning, and one of many pickets stretched out on the bottom in entrance of my automotive. I stated, ‘That does it!’ I referred to as all my individuals collectively and stated I used to be going to shut up store. ‘We’re going to shut the store tomorrow, and there can be an indication on the door, ‘CLOSED,’ till termination of the strike.’ Everyone was laid off; everyone was informed that once we resumed, which I hoped can be quickly, they wouldn’t lose any cash–they’d all be given again pay. I arrange my momentary workplace over at our promoting company, Batten, Barton, Durstine & Osborne on Madison Avenue, and I didn’t lay eyes on that brewery all through that strike. We have been out of enterprise for 3 pricey months.
My level in speaking about that strike is that this: We anticipated, in fact, the competitors from outdoors the New York space to maneuver in. All of the breweries have been closed in New York–they have been all struck so we weren’t the one sufferer.
We had a commerce group, the Brewers’ Board of Commerce, in New York Metropolis. I used to be the president. We have been surrounded by competing corporations. New Jersey had massive breweries, Ballantine and others. The western manufacturers corresponding to Budweiser, Schlitz, and so forth. had distribution amenities in New York Metropolis as they have been doing enterprise within the metropolis. We knew that they’d simply pour of their merchandise to the extent they bodily might. And we knew that the unions, to harm us, would allow and promote the importation of beer from the surface so our poor, thirsty clients wouldn’t go dry.
All these pressures. Nicely, we got here out of it unsure about how we might fare choosing up the unfastened ends on the termination of the strike, however we regained our place in a single month.
The Brewers’ Board of Commerce members have been a united entrance virtually to the termination of the strike, however there have been breakaways in the direction of the top of the ordeal. Some weakened and broke away. We had some disagreeable exchanges which have been onerous to take since we had been good associates. There was bitterness consequently.
As was anticipated, I held numerous workplaces in all the essential commerce associations:
United States Brewers Affiliation–Vice President, Treasurer, President and honorary Director.
New York State Brewers Affiliation–Vice President, Trustee.
Metropolitan Brewers Institute–Treasurer
Brewers Board of Commerce–Vice President
Brewing Business Basis–Treasurer
Model Names Basis Inc.–Director
Bottling Brewers Protecting Affiliation–Vice President and Director.
The enterprise stored rising to a pint the place we have been confronted with both increasing the capability of our breweries or constructing a totally trendy brewery. The older crops weren’t as environment friendly as our rivals’ newer ones. We determined, due to the delivery and supply issues, that central Pennsylvania can be the perfect website for a brand new, trendy brewery. That’s why we constructed the Lehigh Valley Brewery close to Allentown, Pennsylvania.
I had an exquisite time engaged on that. We introduced that brewery in 1968. We designed it ourselves though we needed to have an architect of document as a result of that was required. I labored with David Eggers of Eggers and Higgins for we had commissioned his agency to design the pores and skin. The surface look. The aesthetics. That they did.
However your complete inside format from an operational standpoint was finished by us–with our personal engineers and our personal expertise. It was constructed on an enormous, previous corn area. About 160 acres. It was farm nation; there have been no factories anyplace close to us. The most important hurdle was persuading the native city fathers to agree to surrender the farm land. There was no zoning battle, nevertheless it took somewhat doing. We needed to transfer very slowly as a result of we needed to deal very gently with the native individuals. After they agreed to our constructing the brewery, the town needed to run all the utilities in there for us–they even ran a railroad spur in for supply of our provides. It’s a self-sufficient plant and tremendously profitable. Very environment friendly. As a matter of reality, that brewery is the one one owned by the individuals who purchased the corporate. They expanded the Lehigh Valley plant, and it now produces all the beer that the corporate is promoting now.
Once we first accomplished Lehigh in 1972, it was about half the dimensions of the Brooklyn brewery, however it was tremendously environment friendly. The entire plant was on one degree. It was constructed from the bottom up, and every part was positioned in correct relationship or sequence to the manufacturing stream. The opposite crops have been relative hodge-podges as a result of, simply as within the case of the Brooklyn plant, the unique brewery was added on to satisfy altering calls for. This resulted in an inefficient operational circulate.
It additionally resulted in a troublesome manning drawback. We needed to rent an awesome many extra individuals than we needed to to supply the identical capability we might obtain in Allentown. So our selections to construct Lehigh had as its objective to construct a plant which might function effectively with fewer individuals.
It was devoted to me, to R.J. Schaefer, in June, 1972, by R.J. Schaefer III who was president of the Schaefer Brewing Firm, a subsidiary of The F. & M. Schaefer Company, the holding firm.
Through the sixties, enterprise was excellent. 1964 was a Four-million-barrel yr! And 1968 was a 5-million-barrel yr! However all throughout this time, I sensed that the longer term was going to be tough. I knew that our huge competitors was not the native breweries however nationwide breweries–the nationwide manufacturers. Budweiser, Schlitz, Pabst, Miller, these have been our future competitors. We had now reached a peak which we thought was a saturation level for one model within the space the place we bought. We had made a number of probes to check the opening of latest markets. These proved to be troublesome and actually not profitable.
Our Cleveland market was confined to what I regarded as an island operation. There was an space between the Cleveland market and the world we bought in Ohio surrounding Cleveland. There was a barrier between that and our Pennsylvania market. A niche the place we didn’t promote, and, in making an attempt to shut the hole, we bumped into problem. The truth is, we deserted it. In truth, we deserted Cleveland regardless that we had placed on an incredible present there to make ourselves recognized. Schaefer was a brand new identify in Cleveland, and we weren’t profitable to giving it excessive visibility so we lastly bought the brewery and closed that market.
With discouraging expertise, and with the circumstances within the advertising subject, we might foretell that, with rivals like Budweiser, Schlitz and Pabst, we have been dealing with a tough future. Increasing territorially was a troublesome, if not inconceivable, enterprise besides at very excessive value. We didn’t need to take that danger. I started to think about promoting out if we might discover an purchaser at an excellent worth as a result of we have been very profitable and really worthwhile. We went via various negotiations and eventually determined to go public. This we did in 1968.
We have been included, and we bought all of the shares of inventory that I owned and had put in belief for my youngsters. I had talked it over with my two boys very rigorously as a result of it concerned their futures. I thought-about all points of the thought. I introduced all the professionals and cons to my sons. We mentioned it, and I stated, ‘It’s your future, not mine.’ They lastly agreed with me that promoting out can be a sensible step to take. We developed the thought after which mentioned it with my tow daughters. I had arrange trusts for the 4 of them in order that they have been concerned by way of the trusts. I used to be utterly open and above board so far as my household was involved. I went about and tried to buy this factor and wound up doing it the best way we lastly did.
It was a really exhausting choice to make, however the reasoning was so believable that I had no misgivings about it by any means. I knew I used to be proper. I used to be satisfied that this was the factor to do. My boys agreed with me, and, because it turned out, on reflection, it was a really sensible factor to have executed. We picked simply precisely the correct time.
We bought out proper on the peak and obtained the final potential greenback. A brand new firm, The Schaefer Company, was shaped which bought the inventory which was bought to the general public in 1968. There was a banking group which put the deal collectively, and the inventory was distributed by White, Weld downtown. The deal had been put collectively oiginally by an organization by the identify of Pressprich which dissolved about three or 4 years in the past. The capital inventory was bought for $100 million. We had set that worth, and anybody might have come alongside and purchased it for $100 million, however nobody did so we needed to promote the inventory to the general public for that worth plus $6 million for the popular inventory I held. Valued at $106 million, Schaefer inventory was listed on the New York Inventory Change.
On the time, we determined to promote our inventory, Schaefer was primary! We might out-service any of our rivals. We had beat out Ruppert a number of years earlier than, however Rheingold was now our largest competitor. Quickly after we went public, Rheingold turned primary. A number of years later, Ruppert closed their plant and bought the property as a result of their model was produced by Rheingold. We regained our first place and beat Rheingold proper up and past the time that we dicided it was the fitting time to promote out.
My son, Rudie, had been groomed to take over Schaefer Brewing Firm and that he did as CEO and President. Nevertheless, the board of the holding firm looked for and employed Bob Lear CEO of Indian Head to be chairman. He, figuring out nothing a few consumer-oriented enterprise, made one mistake after one other. I deplored his disastrous determination to fireside BBDO, the promoting company which helped to place Schaefer on the Fortune 500 listing for some years. He introduced in William Schoen to be liable for overseeing your Rudie’s operation of the brewing firm. Rudie was requested to do quite a lot of PR work–showing earlier than funding committees of brokerage homes and so forth–and he discovered that that wasn’t what he’d been educated for. He discovered these assignments ate up a substantial amount of the time wanted for the operation of the brewing firm.
Rudie requested me to have lunch with him on the New York Yacht Membership a couple of years after we’d gone public, and he informed me most reluctantly that he was going to resign from The F. & M. Schaefer Brewing Firm. His place had turn out to be untenable. That was a tragic day for us each.
In 1970, we acquired Arnold Bakers for $9,500,000 of Schaefer most popular inventory. It was a step in our diversification program and our entry into the meals subject. Arnold’s serviced the identical space that Schaefer did. It appeared like a pure as a result of beer, comprised of hops, was considered liquid bread. It by no means labored for we discovered that with 27 totally different sorts of packaging our beer for the vans, we didn’t have room to hold Arnold’s merchandise. We and Bob Fanelli of Arnold’s determined to promote Arnold Bakery to a grain firm. We didn’t lose cash, however that acquisition by no means made us any cash both.
I want I knew what the corporate’s internet value was once I took over presidency in 1927, however it was very low. At one time, throughout Prohibition, alongside about 1930, on of the large bootleggers approached me not directly and provided to purchase the brewery in Brooklyn with the proviso that I might keep as president as a entrance for his clandestine operation.
I used to be prepared to think about his supply of $700,000 for the property, however underneath no situation would I stick with the corporate as its president. If we had accepted his deal, we might have bought out for $700,000. So, in impact, what I did was to parlay the $700,000 to $106,000,000 in 38 years.
Throughout these 38 years, despite the fact that there have been troublesome occasions, I didn’t need to wrestle with any self-doubt about with the ability to deal with the great occasions and the dangerous. I had many issues going for me and the corporate. I had good managers. We had fantastic esprit de corps; we had a fantastic personnel program. We had a really loyal, hardworking group. We turned unionized on the flip of the century, however I used to be the primary within the nation, in our enterprise, to offer life insurance coverage and pension advantages not referred to as for in union contracts.
Because it turned out, I’m very happy that I by no means turned a professionl architect however made a hit of the F. & M. Schaefer Brewing Firm. Concluding the gorgeous 100th Anniversary e-book, printed in 1942, which tells the story of the corporate as much as that yr, is that this pragraph:
‘The years forward are formed by the years which have gone earlier than. And man’s achievements rise like monuments to the ideas, the hopes, the goals of males who’re right here no extra. How properly these monuments will endure the endless flight of time, our deeds alone can inform. For the previous lives at present in every of us, and thru us, prophisizes our future.’
On Might 26, 1981, I despatched in my remaining shares of the F. & M. Schaefer Company for redemption by means of the acquisition settlement by Stroh Brewery Firm of Detroit to accumulate all excellent shares at $7.40 per share.
This was the final vestige which spelled the entire disassociation – the final line – of the household from the corporate which the Schaefer brothers had based in 1842 (included in 1878), 139 years in the past.
Fascinating to notice is that the corporate has now come full circle, from a personal firm to public possession and now once more again to a personal firm–from 100% Schaefer possession to 100% Stroh possession.
For all however the final 13 of those years, the corporate had been owned 100% by the household, having gone public in 1968.
Rudy was additionally concerned in creating the United Brewers Industrial Basis, which was liable for the “Morale is a Lot of Little Issues” promoting collection and the later “Beer Belongs” advertisements. This 1937 photograph from the founding of the UBIF consists of Rudy Schaefer within the center, with NYC rivals Jacob Ruppert, Jr. and Carl Badenhausen.