Schlitz puts a new spin on an old recipe

09.04.2008 03:18 Home - Source: JS Online

The beer that made Milwaukee famous hopes to stage a comeback by returning to a brewing formula discarded over 30 years ago.

Schlitz had been available only in cans for several years until the brand's owner, Pabst Brewing Co., began selling it in bottles last year in Minneapolis and Tampa, Fla.

That bottled version of Schlitz, which uses a traditional recipe last used in the early '70s, was snapped up by older baby boomers who remember the beer from its glory days, before Jos. Schlitz Brewing Co. cheapened the formula. On Monday, 10 Chicago taverns and liquor stores began carrying the bottled version.

The "new" brew, dubbed Schlitz "Classic 1960s Formula," carries a more "full-bodied taste," with a bit more flavoring from hops than Schlitz in cans, which remains unchanged, said Kyle Wortham, a brand manager at Pabst, based in suburban Chicago.

"It tastes like a real beer," Wortham said about classic Schlitz.

Unlike most beers, classic Schlitz isn't being marketed to people ages 21 to 35, who buy more than half the beer sold nationwide.

Instead, Pabst is selling bottled Schlitz as a sudsy comfort food for men in their 50s and early 60s. Those drinkers mostly came of age in the 1960s, when Schlitz was advertised as the beer with "gusto."

A series of Web-based ads, which can be viewed at schlitzgusto.com, feature a man in his 50s. Each spot provides a definition of gusto.

One ad shows a bar scene with a 20-something looking at his cell phone, as the narrator says gusto is "instant messaging - face to face." The young man then moves aside to show two baby boomers yukking it up at the bar over a couple of beers.

The tagline for the ads: "Go for the gusto. Your Schlitz is back."

Sales are down

Can enough older drinkers be lured back to Schlitz to make the brand's relaunch worth the investment?

Pabst Brewing, which counts Old Style, Old Milwaukee and Pabst Blue Ribbon among its lineup of inexpensive beer brands, has seen sales volume erode for several years.

Last year, Pabst Brewing sold 6.1 million barrels, down 6.2% from 6.5 million barrels in 2006, according to trade publication Beer Marketer's Insights. In 2000, Pabst sold 10.8 million barrels.

Separate sales figures for Schlitz were not available, but the trends for most mainstream, full-calorie beers are not promising. The cheaper versions of those full-calorie beers - brands such as Schlitz, Milwaukee's Best and Busch - have seen sales drop a combined 18.9% over the past five years, according to Beer Marketer's Insights.

But Schlitz has its devotees who appreciate the traditional recipe, said Jerry Glunz, general manager of Louis Glunz Beer Inc., a Chicago-area wholesale distributor. Glunz Beer used a horse-drawn wagon Monday - the 75th anniversary of legal beer in America - to deliver classic Schlitz to bars and liquor stores in the city's Lakeview neighborhood and found 20 people waiting at the first stop.

People in their 50s and 60s still drink a lot of mainstream beer, he said.

"They're not looking for microbrews, they're not looking for imports," said Glunz, who plans to expand sales of classic Schlitz throughout Chicago.

Pabst's approach is a good idea, said Harry Schumacher, who operates Beer Business Daily, an Internet-based trade report.

"They have nothing to lose," Schumacher said. "It's not a big financial outlay. If it works, there could be a huge upside. If it doesn't work, they'll likely sell some beer anyway."

Pabst doesn't own a brewery, and instead keeps its costs low by hiring Miller Brewing Co. to make its brands.

If demand expands, sales of classic Schlitz could spread to Milwaukee and other cities, Wortham said.

Changes not popular

Schlitz was advertised for decades as "The Beer That Made Milwaukee Famous." By the 1950s, it was the nation's largest brewer, with additional breweries outside Wisconsin. But in the '60s and '70s, Jos. Schlitz Brewing Co. did some things that affected the beer's taste.

In 1967, Schlitz patented a process that accelerated fermentation, according to the book "Breweries of Wisconsin" by Jerry Apps. That was followed by apparent changes in ingredients, including a different type of barley and the use of corn instead of barley, Apps wrote.

Drinkers noticed and turned away, said John Gurda, Milwaukee historian and author.

"That stuff was undrinkable in the '70s," Gurda said. "It had a very pronounced chemical taste."

Loyal Schlitz drinkers felt betrayed by the changes, said Glunz, whose fourth-generation family business began distributing Schlitz in 1893.

Schlitz sales dropped throughout the decade. Schlitz retiree Parker Sullivan recalls trucks lined up on the street, returning unsold beer to the brewery.

"It was just heartbreaking," said Sullivan, 88.

In 1981, workers at the company's Milwaukee brewery went on strike. Management decided to close the brewery, angering Milwaukeeans. A year later, Stroh Brewery Co. bought Schlitz, and the former brewery was later converted to the Schlitz Park office complex. Most of Stroh's brands, including Schlitz, were later purchased by Pabst.

Despite the renewed focus on aging boomers, Schlitz might also find new fans among drinkers in their 20s, Schumacher said. He cited Pabst Blue Ribbon, another old-time brand that has enjoyed a revival in recent years from young drinkers drawn by its retro appeal - and lack of a big ad campaign.

"They might get some young hipsters" to drink Schlitz, Schumacher said, "just because of the irony of it."

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