THE BEGINNINGS
- Of Bavarian Brewery
THE BEGINNINGS
- Of Bavarian Brewery
ADS - From Newspapers
10. The Merger of Bavarian Brewing Co., Inc., with INTERNATIONAL BREWERIES INC. (IBI): (1959-1966)
THE CONSOLIDATION OF BREWERIES
- In the 20th Century
After the number of breweries in the U.S. peaked to 4,171 in 1873, a tremendous amount of consolidation began in the brewing industry. Of course, during the nearly 15 years of Prohibition from 1919, nearly all breweries went out of business, except for a small number that tried to make near beer, malt extracts or soda - and some that operated illegally. Many industrial improvements were also made over this period, making older brewery equipment and facilities obsolete. There were also changes in the ownerships of the breweries. They were mostly family owned and it was difficult for many families to hold on to properties that had limited profitability other than as a brewery. This resulted in the sale of many breweries, which were demolished or repurposed, and made it difficult for brewing families to reenter the brewing business after Prohibition was repealed. Another dynamic is that it was not uncommon for older family members who had operated the brewery to pass away before Prohibition ended some 15 years after it began. Their surviving relations were often uninterested or too inexperienced to get involve in brewery 15 years after Prohibition to resume brewing operations again. Or, sometimes there were no direct descendants to carry on the business. In the case of Cincinnati, the three largest breweries before Prohibition, including Moerlein, did not reopen after. However, improvements in transportation, refrigeration, packaging/canning, marketing, etc., increased the capital to enter the brewing business. This caused the smaller brewers to be acquired by larger brewers - or to simply be forced out of business - and the large brewers became larger.
The trend of consolidation was evident before Prohibition, but occurred more rapidly after. In 1934, there were 756 brewers in the U.S.; considerably less than a few thousand before Prohibition. In 1950 there were just 430 breweries. In 1960 there were only 225 breweries, owned by 178 companies, and in 1965 there were only 198 breweries, owned by 136 firms. However, by 1972 the number of breweries dropped by more than one half, to only 78. Still, there were some entities that thought they could be part of the consolidation trend and be successful, especially in the 1950's and 1960's, if they were at least moderately large in size.
THE CREATION OF INTERNATIONAL BREWERIES INC. (IBI)
The concept of establishing IBI in 1955 was spawned by Bruce Berkmans, formerly affiliated with the Schaefer and Piel breweries. He believed that "creating an umbrella for local breweries would be a very good thing. " By combing several breweries in different regions of the country they could take advantage of economies of scale, and overall profitability could be improved through bulk purchasing, centralized merchandising, improved logistics and increased marketing. He also provided significant incentives to distributors and wholesalers. Berkmans provided much autonomy to the local breweries, but also liked to frequently visit the plants and be involved in major decisions.
IBI Corporate Emblem
As a former Canadian Air Force pilot, Berkmans was able to fly his plane named the "Flying Brewery" from his headquarters in Detroit to plant locations in Ohio, New York and even Florida. The local breweries under the International name lost some independence, but it offered them hope in a very competitive landscape. During Internationals first five years, its growth exceeded many expectations. Gross sales increased from $17,310,881 to $27,345,736 along with a doubling of net worth. The firm also repaid over $1 million in loans and reinvested some $2.5 million in excess revenues. Another aspect about International's stock, is that it paid an attractive dividend and performed well during this first five-year period. The company may have been a little over-ambitious when they chose the name “International.” After all, their locations were only situated in the U.S. - and in just four states all situated east of the Mississippi River. However, they did have operations in Detroit and Buffalo, not far from Canada, and apparently the company had once considered acquiring a brewery in that country.) Berckman believed that for his company to be successful, it had to be one of the 25 largest breweries. This occurred shortly after Bavarian Brewing Co. and IBI announced that they would be merging on February 20, 1959.
The formation of IBI was through multiple acquisitions, as summarized below.
•Iroquois Beverage Co., Buffalo, NY in 1955
Iroquois Beer and Ale (formerly Tomahawk Ale)
•Frankenmuth Brewing Co., Frankenmuth, MI in 1955
Frankenmuth Beer & Ale (& Bock Beer), (formerly Old English & Pioneer Ales)
(Plant acquired by Carling in 1956)
•Krantz Brewing Co., Findlay, OH in 1956
Old Dutch Beer
•Southern Brewing Co., Tampa, FL in 1956
Silver Bar Beer and Ale
•Phoenix Brewery Co., Buffalo, NY in 1957
Phoenix Beer and Cream Ale
•Bavarian Brewing Co., Covington, KY in 1959
Bavarian/s Beer
Other brands that were added without the acquisition of breweries were:
Tropical Ale – from the defunct Tampa Florida Brewery, Inc., in 1961.
IBI Malt Liquor - beginning in about 1961.
Stolz Beer - beginning in the early 1960s.
Malta Huey - a beverage licensed from Bacardi in the early 1960s.
In addition, IBI may have obtained a couple other brands with very limited production.
BAVARIAN/S AS PART OF IBI
To celebrate their fold into IBI, the former top executives of Bavarian Brewing Co. met with Bruce Berckmans, the President of IBI. The photo was taken at IBI's headquarters in Detroit, MI, about a month after the merger. William R. (Bill) Schott, on the far left, had become Vice President and Board Member of IBI as well as General Manager of the Bavarian Plant. His father Will Schott, to his right, was no longer involved with day-to-day operations, but had a significant equity ownership in IBI. On the far right, Louis L. Schott, is next to Berckmans with his father and brother. Louis became the Sales Manager for the Bavarian Plant. Despite having less authority than his brother, Louis had the same equity interest in their family brewery, and in IBI.
THE NEW BOTTLING PLANT
Bavarian expressed interest in acquiring a new bottle shop (plant) a few years before the merger with IBI. Their Directors even had approved funds to begin the designs for this structure 1958. It appears that when arrangements were made to merge with IBI in 1959, there may have been an agreement for IBI to build this bottle plant as well. One of the restraints Bavarian had in constructing the bottling plant was its considerable cost, especially in light of the brewery’s lack of significant sales growth and increased costs. IBI's willingness to build a new Bottling Department at Bavarian’s main plant may have been a contributing factor to the decision of the brewers to merge. This new structure was completed in August of 1960, about a year after the merger, at a cost of $500,000. It was heralded in the local papers, and executives posed in the new plant for promotional pictures, as shown below.
1960. From left to right, a large ad in the Cincinnati Enquirer publicized the opening of Bavarian/s new Bottling Plant. In the middle photo above with new equipment are (l. to r.): Miles Ericson, IBI Exec. V.P.; Larry Schrand, Bottling Superintendent, Wm. C. Schott: and Wm. R. Schott (IBI V.P. and G.M. of the Bavarian Plant. These same individuals are in the far right photo.
DEPARTING EMPLOYEES
Shown on the side (left to right) are: Louis Schott, William C. Schott, Henry Wetzel and William R. Schott. They are congratulating Mr. Wetzel upon his pension retirement in 1960; he had begun working at Bavarian in 1917.
Like any merger, there were some transitions after Bavarian merged with IBI About this same time, IBI no longer had a need for Bavarian's Marketing Group, as most of that work was centralized at IBI's Detroit headquarters. As a result, the Advertising Manager, Larry Rinck, resigned shortly after the merger. In 1961, Louis L. Schott, who was Marketing Director and became Bavarian's Sales Manager under IBI, resigned and took on an executive position with another Schott Family business, the Cincinnati Galvanizing Co.
SUCCESSFUL BOWLING TEAM
As mentioned under Sponsorships, Bavarian supported amateur sports and teams, which would include their workers, and occasionally employees of some of their customers or a distributor. Even before Prohibition, bowling was played at the Turners next to the brewery by William Riedlin and other employees. A Mettlach drinking vessel featuring bowling was in the Bavarian Tap Room. On the side is a picture of a successful Bavarian's employee bowling team in 1962 with a trophy displayed by Larry Schrand (Bottling Dept. Mngr.). Left and right of him are Bill Schott (V.P. & Gen. Mngr.) and Bruce Berckmans (President), respectively.
AN EVENT WITH TWO MAYORS
In the photo on the left, there is a gathering of executives of IBI with Mayors of both Cincinnati, OH and Covington, KY. They met to view the unveiling of a new lighted sign in the Ft. Washington area of Cincinnati in 1962. Left to right are Edward W. Pulver, IBI Sales Manager So. Central Region, William R. Schott, Director of IBI, V.P., and General Manager of the Bavarian Plant; Bruce Berckmans, President and Chairman of IBI; Walton H. Bachrach, Mayor of Cincinnati; and John J. Moloney, Mayor of Covington.
BAVARIAN'S ADVERTISING - Before Merging with IBI
In 1958, the advertising for Bavarian continued to support their "New Look," initiated a year earlier to essentially rebrand their beer as well as their company. They established a comprehensive advertising campaign around their new image. They also selected an attractive "Bavarian Girl" as an ambassadress to the company. Slogans were created to distinguish their beer from others, e.g. "Brewed the Old World Way...Nature’s Way." In early 1959 - prior to their acquisition by IBI - Bavarian refined their slogan, as shown by the ad on the side encouraging customers to "Enjoy Old World Style...American Style." (See Ads: 1957-1966). Another "Bavarian Girl of the Year" was not selected in late 1958 and Bavarian's print advertising appeared to decline in the beginning of 1959. It is possible that Bavarian was reluctant to make substantial marketing commitments when they probably anticipated a merger with a firm that had a different advertising philosophy.
How About That!
Shortly after IBI acquired Bavarian merged with IBI, a new Blitz Merchandising Drive for Bavarian/s was announced in International News, IBI's newsletter, dated June, 1959. This publication replaced Bavarian's "News Tap" Newsletter. Bavarian's main new advertising slogan was changed to "How About that!" - shown in the far right banner above. Other phrases were also used, as shown by the banners. A radio jingle featuring the slogan "How About That!" can be heard by clicking on the arrow above. At first, it seemed that IBI provided some unique and direct support for Bavarian/s. However, after a couple of years, IBI typically no longer supported individual branding and distinctive advertising for each of their brands. Rather, they attempted to standardize their advertising for most of their brands; they did so in part by making their labels alike, as shown below.
Mel-O-Dry: One of the main advertising themes for IBI, introduced around 1961, was the slogan "brewed MEL-O-Dry to satisfy your taste!" Diagrams that illustrate this "Mel-O-Dry" slogan are presented below. These items were evidently used for most of IBI's brands by simply changing the name of the beer. In particular, the diagram in the center below seemed to imply that there may have been a relatively consistent brewing process among all IBI brands, suggesting there may not have been any significant differences in taste between the beverages. If that was what actually occurred, then there may have some changes in the way that some or all of the beers that IBI acquired were brewed. The fact that four of IBI's six beer labels had the same design also implies that these beers were brewed in the same way and shared a similar taste, if not the same. An ad that departed from the Mel-O-Dry ads, appearing in 1962, which was unique for Bavarian/s and connected the brewery back to its early years before Prohibition, appears on the far right below. It features a photo of the workers at Bavarian from 1902. Shown in the upper right is the founder who incorporated the Bavarian Brewing Co., William Riedlin; his son is seated in front second from the right. For more information about this photo please see period 4. The Early 1900s.
In addition to the beer labels shown above, other brands in small quantities bottled at the Bavarian plant in Covington included Malta Hatuey and a limited numbers of brands from the former Cleveland-Sandusky Brewery. These included Gold Bond and Crystal Rock beers, as well as Old Timers Ale. A couple other infrequently produced brands in Covington, originally from Florida breweries, were Stolz Beer and Orbit Beer. In addition, Silver Bar and Frankenmuth also had ales with labels that had green backgrounds instead of the red backgrounds associated with their beers. Altogether, IBI produced about a dozen different beverages. Besides having similar advertising for its brands, IBI also brewed several different brands at their Phoenix Plant in Buffalo, NY, the Old Dutch plant in Findlay, OH, and the Southern (Silver Bar) plant in Tampa, FL - until the beginning of 1964 when the Tampa location was closed. However, the Bavarian plant was the only one that produced all the different IBI brands, except for Iroquois Beer and Tomahawk Ale, which were exclusively brewed at the IBI Iroquois plant in Buffalo, NY.
A unique aspect about Bavarian/s labels compared to other IBI brands is that they were never materially changed. Only a relatively minor change to this label was made, as shown in the upper right above. Foil paper was no longer used, as it was before the merger, to reduce costs. Additionally, the label print color was changed from yellow to red. There was also a brief period in which the IBI letters replaced the symbols for Time, Tradition and Skill in Bavarian's three colorful flags.
The print and point-of-sale advertising among IBI’s brands was often the same, using the same slogan and photos while interchanging the name of one of their beers, and always emphasizing the IBI name and logo. This design helped IBI to lower their advertising costs and simplified their marketing. Since only the Iroquois brand was brewed in one plant in NY, and all there other brands were brewed in multiple plants in different states and selling territories, there usually wasn't an issue with advertising different beers that had the same label designs and marketing material.
An Award-Wining Taste: : In 1962, Bavarian received first prize in an International brewing competition in Belgium, as shown by the accompanying copy of the certificate. This was achieved under the Bavarian's plant brewmaster, Harold Klink, shown below. This award greatly pleased IBI and they used it in ads for their other beers, not only those for Bavarian/s, also shown below. Even though IBI had different brands that once had their own recipes, there may have been an effort by IBI to essentially use a similar recipe for all their brands. Their ads seem to lend credence to this possibility. Ads featuring this award appeared in 1963 and 1964 and are shown below.
...The Bold Beer: At some point in 1964, IBI changed the slogan Bavarian/s to "Things liven up with the Bold Beer." Some examples of this saying printed on advertisements and an outdoor sign are shown below. This was the last major slogan used by IBI. While advertisements for Bavarian/s had used an ambassadress in 1958, and then featured mostly men thereafter, it was noteworthy that the marketing behind this new slogan featured couples. As displayed in the ads below, the couples were depicted as much more lively and attracted to one another once they were drinking Bavarian/s.
THE PERFORMANCE OF IBI
The relatively early success of IBI shortly after it was formed made it an interesting suitor for Bavarian, even though it was not the only option available to Bavarian. (See 9B. A Meeting with Gussie Busch.) However, IBIB's performance ultimately was one of two stories: optimism in their first five years, and concern and disappointment in their remaining six years.
The First Five-Years of IBI
Between 1954 and 1959, IBI acquired five breweries and was able to attain their goal of becoming the 25th largest brewery in the country. A financial summary of IBI and the locations and photos of their plants are shown on the right. This complete report in PDF format can be viewed here. The founder and President of IBI, Bruce Berckmans, considered himself a maverick because he was successful in creating a firm that others said wouldn't work, according to the noted report. In the year following this report (in 1960), IBI invested $500,000 in a new bottling plant at Bavarian in order to increase its production. The move installed optimism in the future of the Bavarian Brewery Plant under IBI's management.
IBI in the 1960s
The IBI annual report for 1961 showed the Directors and Management of the IBI, as displayed on the right. It identifies Bruce Berkmans as both the Chairman and President of IBI. William R. Schott - the son of Lucia Riedlin Schott, who was the daughter of Bavarian founder William Riedlin - was one of the nine IBI Directors. He was also a Vice President and the General Manager of the Bavarian Brewery Plant. The front cover of the report is shown to the lower right, publicizing IBI's advertisement in LIFE Magazine. To promote the national exposure this provided IBI, an "As Advertised in LIFE" neck label was used at that time, as shown by the bottle below. However, inside the annual report there are indications that the brewer was facing some troubling financial headwinds. (This entire report in PDF format can be viewed here.) Gross sales seemed to have plateaued in 1958, and net income began significant declines in early 1959. By 1961, its dividends were reduced from $1.00 to 70 cents per share. However, its earnings declines were not only a harbinger that dividends would be further reduced, but that the company was having more serious financial issues.
Despite a good deal of optimism that IBI generated about its future among their employees and customers, the competition from the larger brewers - as well as the lack of material growth in the demand for IBI's different brands - was taking a financial toll. By the early 1960s, the expectations that were exalted just a couple years earlier by the President of IBI, Bruce Berckmans, in the 1959 annual report, were failing. IBI lost $294,894 in 1963 and about $762,892 in 1964, as their production and sales declined. The combined purchasing and advertising power of IBI, which they hoped would provide them with an advantage, became unsuccessful.
The logistics of brewing multiple brands in four of their five plants, and distributing some of these in new, overlapping market territories, may have been challenging. In particular, operating older plants likely contributed to higher costs and reduced margins for IBI compared to other national brewers, who were building new and more efficient, automated breweries. Most of the members of the Schott family (William C., Louis L., Lou) had remained shareholders in IBI, but the reduction in the company's dividends caused at least one family member to divest his holdings. The earnings for IBI continued to erode. By 1964, the IBI Directors decided to replace the founder and President of IBI, Bruce Berckmans, because of shareholder discontent and disappointing profitability. The new President, Albert Roach, was elected by only a one-vote margin. The former President of Bavarian’s, Wm. R. Schott, supported the new President.
The Beginning of the End, and the Bavarian Brewery Closing
In 1965, the struggles of IBI continued and some shareholders in the company expressed concerns with the practices of President Roach. A proxy fight ensued over the control of IBI, headed by Terry J. Fox and Charles George. In a close 5-4 Board vote, the four opposition Board members, including Wm. R. (Bill) Schott and Roach, were removed. The departure of Bill from IBI ended the Riedlin and Schott family’s involvement in Bavarian Brewing Co., which had begun in 1882 and lasted for over 83 years. Also in July of 1965, IBI threatened to close the Bavarian plant. Negotiations occurred between Covington Mayor Bernard Eichholz, the new Chairman and President of IBI, Fred George, and union representatives. Eichholz wanted to retain the City's oldest and largest employer, which provided jobs to over 200 employees and contributed $1.17 million annually into the local economy. After concessions were made, it was agreed that some of Bavarian's delivery drivers would take jobs with various distributors; this move would reduce costs for IBI, who claimed they were losing $1,400 per day on the Bavarian Plant. A couple months later, Terry Fox became President and Chairman of IBI. In March of 1966, this IBI chief executive and the new Board decided to license Bavarian/s to Associated Breweries, which was based in Detroit and the eighth-largest brewery in America at that time. IBI also licensed Old Dutch, made in Findlay, OH to Associated. Arrangements were made to produce Bavarian/s at Associated's plants in Evansville, IN and Detroit, MI, meaning it would continue to be available in the Cincinnati area.
However, these changes signaled the end for the future of the Bavarian Brewery Plant and its workers. Ultimately, IBI had determined it could not be profitable in brewing and decided to exit the beer business altogether. In June of 1966, IBI liquidated two of their remaining breweries, one located in Findlay, OH and the Bavarian Brewery plant in Covington, KY. (See the Bavarian Brewery Closing.) IBI then acquired a controlling interest in Aberdeen Management and changed their name to that firm in 1967. The accompanying stock certificate has the signature of Terry Fox and was actually dated after IBI liquidated its breweries.
CONTINUE TO
Period 11 - Brewery Closed & Sold (1967-95)
Closed, But Not Entirely Gone
Even though the sales of Bavarian/s had not grown in recent years, there were still many loyal Bavarian/s beer drinkers and there was a continued demand for the beer. Associated was easily able to accommodate this demand primarily by brewing and bottling Bavarian/s at their Evansville, IN, brewery. Bavarian/s was also brewed at other Associated breweries until they went out of business around 1972. Thereafter, other entities still continued to brew Bavarian/s somewhat longer.
Comment: Around 2018, a microbrewery in Covington, KY, Braxton Brewing Co., mimicked Bavarian/s Select Beer three-flag logo that Bavarian Brewing Co. developed, but for a beer they introduced as Bavarian Style Select Lager. Note this is a slightly different name than Bavarian/s Select Beer. The initial distribution was limited and only available in kegs. A year or two later, in late 2019, Braxton increased the availability of this beer by making it available in cans. This occurred shortly after the opening of Kenton County Government Center, which repurposed Bavarian's former Brew House as office space. However, Braxton's Bavarian Style Select Lager Beer is apparently made differently than the former Bavarian/s Select Beer, and it is believed the beer features a somewhat different taste than before, even though Braxton claims they obtained the original formula used by Bavarian Brewing Co. In addition, the storied history behind the three-flag logo, which is explained under 9A. Bavarian/s New Look, was evidently unknown to Braxton.
T I M E L I N E
To place the events described above in perspective, following are some major events that occurred in the Bavarian Brewery Time Period 10: 1959 - 1966:
-
Alaska & Hawaii are states (1959)
-
Vietnam War begins (1961
-
Reds are NL Champs (1961)
-
J. F. Kennedy is elected President (1961-1963)
-
J.F. Kennedy is assassinated (1963)
-
Lundon B. Johnson become President (1963-1965)
-
I-75 next to the Brewery & Brent Spence Bridge Opens (1963)
-
Civil Rights Act (of 1964); Medicare / Medicaid enacted (1965)
-
Watts Riots (1965)
-
Vietnam War escalates (1965)
-
Lyndon B. Johnson is elected President (1965-1969)
For a summary of all the periods in the history of the Bavarian Brewery, please see the entire Timeline.
SOURCES:
Newspapers.com and Cincinnati Enquirer
Holian, Timothy J., Over The Barrel Volume Two, pgs. 196-198.
Robert A. Musson, M.D., Bavarian Brewing and the rest of Northern Kentucky, Volume IX, pgs. 53 - 63.
Riedlin and Schott family items and information.
Trousdale, C.B., A History of the Bavarian Brewery, 1954
10. The Merger of Bavarian Brewing Co., Inc., with INTERNATIONAL BREWERIES INC. (IBI): (1959-1966)
THE CONSOLIDATION OF BREWERIES
- In the 20th Century
After the number of breweries in the U.S. peaked to 4,171 in 1873, a tremendous amount of consolidation began in the brewing industry. Of course, during the nearly 15 years of Prohibition from 1919, nearly all breweries went out of business, except for a small number that tried to make near beer, malt extracts or soda - and some that operated illegally. Many industrial improvements were also made over this period, making older brewery equipment and facilities obsolete. There were also changes in the ownerships of the breweries. They were mostly family owned and it was difficult for many families to hold on to properties that had limited profitability other than as a brewery. This resulted in the sale of many breweries, which were demolished or repurposed, and made it difficult for brewing families to reenter the brewing business after Prohibition was repealed. Another dynamic is that it was not uncommon for older family members who had operated the brewery to pass away before Prohibition ended some 15 years after it began. Their surviving relations were often uninterested or too inexperienced to get involve in brewery 15 years after Prohibition to resume brewing operations again. Or, sometimes there were no direct descendants to carry on the business. In the case of Cincinnati, the three largest breweries before Prohibition, including Moerlein, did not reopen after. However, improvements in transportation, refrigeration, packaging/canning, marketing, etc., increased the capital to enter the brewing business. This caused the smaller brewers to be acquired by larger brewers - or to simply be forced out of business - and the large brewers became larger.
The trend of consolidation was evident before Prohibition, but occurred more rapidly after. In 1934, there were 756 brewers in the U.S.; considerably less than a few thousand before Prohibition. In 1950 there were just 430 breweries. In 1960 there were only 225 breweries, owned by 178 companies, and in 1965 there were only 198 breweries, owned by 136 firms. However, by 1972 the number of breweries dropped by more than one half, to only 78. Still, there were some entities that thought they could be part of the consolidation trend and be successful, especially in the 1950's and 1960's, if they were at least moderately large in size.
THE CREATION OF INTERNATIONAL BREWERIES INC. (IBI)
The concept of establishing IBI in 1955 was spawned by Bruce Berkmans, formerly affiliated with the Schaefer and Piel breweries. He believed that "creating an umbrella for local breweries would be a very good thing. " By combing several breweries in different regions of the country they could take advantage of economies of scale, and overall profitability could be improved through bulk purchasing, centralized merchandising, improved logistics and increased marketing. He also provided significant incentives to distributors and wholesalers. Berkmans provided much autonomy to the local breweries, but also liked to frequently visit the plants and be involved in major decisions.
IBI Corporate Emblem
As a former Canadian Air Force pilot, Berkmans was able to fly his plane named the "Flying Brewery" from his headquarters in Detroit to plant locations in Ohio, New York and even Florida. The local breweries under the International name lost some independence, but it offered them hope in a very competitive landscape. During Internationals first five years, its growth exceeded many expectations. Gross sales increased from $17,310,881 to $27,345,736 along with a doubling of net worth. The firm also repaid over $1 million in loans and reinvested some $2.5 million in excess revenues. Another aspect about International's stock, is that it paid an attractive dividend and performed well during this first five-year period. The company may have been a little over-ambitious when they chose the name “International.” After all, their locations were only situated in the U.S. - and in just four states all situated east of the Mississippi River. However, they did have operations in Detroit and Buffalo, not far from Canada, and apparently the company had once considered acquiring a brewery in that country.) Berckman believed that for his company to be successful, it had to be one of the 25 largest breweries. This occurred shortly after Bavarian Brewing Co. and IBI announced that they would be merging on February 20, 1959.
The formation of IBI was through multiple acquisitions, as summarized below.
•Iroquois Beverage Co., Buffalo, NY in 1955
Iroquois Beer and Ale (formerly Tomahawk Ale)
•Frankenmuth Brewing Co., Frankenmuth, MI in 1955
Frankenmuth Beer & Ale (& Bock Beer), (formerly Old English & Pioneer Ales)
(Plant acquired by Carling in 1956)
•Krantz Brewing Co., Findlay, OH in 1956
Old Dutch Beer
•Southern Brewing Co., Tampa, FL in 1956
Silver Bar Beer and Ale
•Phoenix Brewery Co., Buffalo, NY in 1957
Phoenix Beer and Cream Ale
•Bavarian Brewing Co., Covington, KY in 1959
Bavarian/s Beer
Other brands that were added without the acquisition of breweries were:
Tropical Ale – from the defunct Tampa Florida Brewery, Inc., in 1961.
IBI Malt Liquor - beginning in about 1961.
Stolz Beer - beginning in the early 1960s.
Malta Huey - a beverage licensed from Bacardi in the early 1960s.
In addition, IBI may have obtained a couple other brands with very limited production.
BAVARIAN/S AS PART OF IBI
To celebrate their fold into IBI, the former top executives of Bavarian Brewing Co. met with Bruce Berckmans, the President of IBI. The photo was taken at IBI's headquarters in Detroit, MI, about a month after the merger. William R. (Bill) Schott, on the far left, had become Vice President and Board Member of IBI as well as General Manager of the Bavarian Plant. His father Will Schott, to his right, was no longer involved with day-to-day operations, but had a significant equity ownership in IBI. On the far right, Louis L. Schott, is next to Berckmans with his father and brother. Louis became the Sales Manager for the Bavarian Plant. Despite having less authority than his brother, Louis had the same equity interest in their family brewery, and in IBI.
THE NEW BOTTLING PLANT
Bavarian expressed interest in acquiring a new bottle shop (plant) a few years before the merger with IBI. Their Directors even had approved funds to begin the designs for this structure 1958. It appears that when arrangements were made to merge with IBI in 1959, there may have been an agreement for IBI to build this bottle plant as well. One of the restraints Bavarian had in constructing the bottling plant was its considerable cost, especially in light of the brewery’s lack of significant sales growth and increased costs. IBI's willingness to build a new Bottling Department at Bavarian’s main plant may have been a contributing factor to the decision of the brewers to merge. This new structure was completed in August of 1960, about a year after the merger, at a cost of $500,000. It was heralded in the local papers, and executives posed in the new plant for promotional pictures, as shown below.
1960. From left to right, a large ad in the Cincinnati Enquirer publicized the opening of Bavarian/s new Bottling Plant. In the middle photo above with new equipment are (l. to r.): Miles Ericson, IBI Exec. V.P.; Larry Schrand, Bottling Superintendent, Wm. C. Schott: and Wm. R. Schott (IBI V.P. and G.M. of the Bavarian Plant. These same individuals are in the far right photo.
DEPARTING EMPLOYEES
Shown on the side (left to right) are: Louis Schott, William C. Schott, Henry Wetzel and William R. Schott. They are congratulating Mr. Wetzel upon his pension retirement in 1960; he had begun working at Bavarian in 1917.
Like any merger, there were some transitions after Bavarian merged with IBI About this same time, IBI no longer had a need for Bavarian's Marketing Group, as most of that work was centralized at IBI's Detroit headquarters. As a result, the Advertising Manager, Larry Rinck, resigned shortly after the merger. In 1961, Louis L. Schott, who was Marketing Director and became Bavarian's Sales Manager under IBI, resigned and took on an executive position with another Schott Family business, the Cincinnati Galvanizing Co.
SUCCESSFUL BOWLING TEAM
As mentioned under Sponsorships, Bavarian supported amateur sports and teams, which would include their workers, and occasionally employees of some of their customers or a distributor. Even before Prohibition, bowling was played at the Turners next to the brewery by William Riedlin and other employees. A Mettlach drinking vessel featuring bowling was in the Bavarian Tap Room. On the side is a picture of a successful Bavarian's employee bowling team in 1962 with a trophy displayed by Larry Schrand (Bottling Dept. Mngr.). Left and right of him are Bill Schott (V.P. & Gen. Mngr.) and Bruce Berckmans (President), respectively.
AN EVENT WITH TWO MAYORS
In the photo on the left, there is a gathering of executives of IBI with Mayors of both Cincinnati, OH and Covington, KY. They met to view the unveiling of a new lighted sign in the Ft. Washington area of Cincinnati in 1962. Left to right are Edward W. Pulver, IBI Sales Manager So. Central Region, William R. Schott, Director of IBI, V.P., and General Manager of the Bavarian Plant; Bruce Berckmans, President and Chairman of IBI; Walton H. Bachrach, Mayor of Cincinnati; and John J. Moloney, Mayor of Covington.
BAVARIAN'S ADVERTISING - Before Merging with IBI
In 1958, the advertising for Bavarian continued to support their "New Look," initiated a year earlier to essentially rebrand their beer as well as their company. They established a comprehensive advertising campaign around their new image. They also selected an attractive "Bavarian Girl" as an ambassadress to the company. Slogans were created to distinguish their beer from others, e.g. "Brewed the Old World Way...Nature’s Way." In early 1959 - prior to their acquisition by IBI - Bavarian refined their slogan, as shown by the ad on the side encouraging customers to "Enjoy Old World Style...American Style." (See Ads: 1957-1966). Another "Bavarian Girl of the Year" was not selected in late 1958 and Bavarian's print advertising appeared to decline in the beginning of 1959. It is possible that Bavarian was reluctant to make substantial marketing commitments when they probably anticipated a merger with a firm that had a different advertising philosophy.
How About That!
Shortly after IBI acquired Bavarian merged with IBI, a new Blitz Merchandising Drive for Bavarian/s was announced in International News, IBI's newsletter, dated June, 1959. This publication replaced Bavarian's "News Tap" Newsletter. Bavarian's main new advertising slogan was changed to "How About that!" - shown in the far right banner above. Other phrases were also used, as shown by the banners. A radio jingle featuring the slogan "How About That!" can be heard by clicking on the arrow above. At first, it seemed that IBI provided some unique and direct support for Bavarian/s. However, after a couple of years, IBI typically no longer supported individual branding and distinctive advertising for each of their brands. Rather, they attempted to standardize their advertising for most of their brands; they did so in part by making their labels alike, as shown below.
Mel-O-Dry: One of the main advertising themes for IBI, introduced around 1961, was the slogan "brewed MEL-O-Dry to satisfy your taste!" Diagrams that illustrate this "Mel-O-Dry" slogan are presented below. These items were evidently used for most of IBI's brands by simply changing the name of the beer. In particular, the diagram in the center below seemed to imply that there may have been a relatively consistent brewing process among all IBI brands, suggesting there may not have been any significant differences in taste between the beverages. If that was what actually occurred, then there may have some changes in the way that some or all of the beers that IBI acquired were brewed. The fact that four of IBI's six beer labels had the same design also implies that these beers were brewed in the same way and shared a similar taste, if not the same. An ad that departed from the Mel-O-Dry ads, appearing in 1962, which was unique for Bavarian/s and connected the brewery back to its early years before Prohibition, appears on the far right below. It features a photo of the workers at Bavarian from 1902. Shown in the upper right is the founder who incorporated the Bavarian Brewing Co., William Riedlin; his son is seated in front second from the right. For more information about this photo please see period 4. The Early 1900s.
In addition to the beer labels shown above, other brands in small quantities bottled at the Bavarian plant in Covington included Malta Hatuey and a limited numbers of brands from the former Cleveland-Sandusky Brewery. These included Gold Bond and Crystal Rock beers, as well as Old Timers Ale. A couple other infrequently produced brands in Covington, originally from Florida breweries, were Stolz Beer and Orbit Beer. In addition, Silver Bar and Frankenmuth also had ales with labels that had green backgrounds instead of the red backgrounds associated with their beers. Altogether, IBI produced about a dozen different beverages. Besides having similar advertising for its brands, IBI also brewed several different brands at their Phoenix Plant in Buffalo, NY, the Old Dutch plant in Findlay, OH, and the Southern (Silver Bar) plant in Tampa, FL - until the beginning of 1964 when the Tampa location was closed. However, the Bavarian plant was the only one that produced all the different IBI brands, except for Iroquois Beer and Tomahawk Ale, which were exclusively brewed at the IBI Iroquois plant in Buffalo, NY.
A unique aspect about Bavarian/s labels compared to other IBI brands is that they were never materially changed. Only a relatively minor change to this label was made, as shown in the upper right above. Foil paper was no longer used, as it was before the merger, to reduce costs. Additionally, the label print color was changed from yellow to red. There was also a brief period in which the IBI letters replaced the symbols for Time, Tradition and Skill in Bavarian's three colorful flags.
The print and point-of-sale advertising among IBI’s brands was often the same, using the same slogan and photos while interchanging the name of one of their beers, and always emphasizing the IBI name and logo. This design helped IBI to lower their advertising costs and simplified their marketing. Since only the Iroquois brand was brewed in one plant in NY, and all there other brands were brewed in multiple plants in different states and selling territories, there usually wasn't an issue with advertising different beers that had the same label designs and marketing material.
An Award-Wining Taste: : In 1962, Bavarian received first prize in an International brewing competition in Belgium. The certificate they were awarded is shown and was provided courtesy of Dave Gausepohl. Please observe that it was also shown on the accompanying ad. IBI often referred to this award in their ads during 1963 and 1964.
This accomplishment was achieved under the Bavarian's plant brewmaster, Harold Klink, shown below. However, IBI used this award not just for Bavarian/s, but to promote their other beers as well. Even though IBI had different brands that once had their own recipes, there may have been an effort by IBI to essentially use a similar recipe for all their brands. This ad and others seem to lend credence to this possibility.
...The Bold Beer: At some point in 1964, IBI changed the slogan Bavarian/s to "Things liven up with the Bold Beer." Some examples of this saying printed on advertisements and an outdoor sign are shown below. This was the last major slogan used by IBI. While advertisements for Bavarian/s had used an ambassadress in 1958, and then featured mostly men thereafter, it was noteworthy that the marketing behind this new slogan featured couples. As displayed in the ads below, the couples were depicted as much more lively and attracted to one another once they were drinking Bavarian/s. Additional ads for Bavarian/s from IBI can be viewed in Ads:1957-1966.
THE PERFORMANCE OF IBI
The relatively early success of IBI shortly after it was formed made it an interesting suitor for Bavarian, even though it was not the only option available to Bavarian. (See 9B. A Meeting with Gussie Busch.) However, IBIB's performance ultimately was one of two stories: optimism in their first five years, and concern and disappointment in their remaining six years.
The First Five-Years of IBI
Between 1954 and 1959, IBI acquired five breweries and was able to attain their goal of becoming the 25th largest brewery in the country. A financial summary of IBI and the locations and photos of their plants are shown on the right. This complete report in PDF format can be viewed here. The founder and President of IBI, Bruce Berckmans, considered himself a maverick because he was successful in creating a firm that others said wouldn't work, according to the noted report. In the year following this report (in 1960), IBI invested $500,000 in a new bottling plant at Bavarian in order to increase its production. The move installed optimism in the future of the Bavarian Brewery Plant under IBI's management.
IBI in the 1960s
The IBI annual report for 1961 showed the Directors and Management of the IBI, as displayed on the right. It identifies Bruce Berkmans as both the Chairman and President of IBI. William R. Schott - the son of Lucia Riedlin Schott, who was the daughter of Bavarian founder William Riedlin - was one of the nine IBI Directors. He was also a Vice President and the General Manager of the Bavarian Brewery Plant. The front cover of the report is shown to the lower right, publicizing IBI's advertisement in LIFE Magazine. To promote the national exposure this provided IBI, an "As Advertised in LIFE" neck label was used at that time, as shown by the bottle below. However, inside the annual report there are indications that the brewer was facing some troubling financial headwinds. (This entire report in PDF format can be viewed here.) Gross sales seemed to have plateaued in 1958, and net income began significant declines in early 1959. By 1961, its dividends were reduced from $1.00 to 70 cents per share. However, its earnings declines were not only a harbinger that dividends would be further reduced, but that the company was having more serious financial issues.
Despite a good deal of optimism that IBI generated about its future among their employees and customers, the competition from the larger brewers - as well as the lack of material growth in the demand for IBI's different brands - was taking a financial toll. By the early 1960s, the expectations that were exalted just a couple years earlier by the President of IBI, Bruce Berckmans, in the 1959 annual report, were failing. IBI lost $294,894 in 1963 and about $762,892 in 1964, as their production and sales declined. The combined purchasing and advertising power of IBI, which they hoped would provide them with an advantage, became unsuccessful.
The logistics of brewing multiple brands in four of their five plants, and distributing some of these in new, overlapping market territories, may have been challenging. In particular, operating older plants likely contributed to higher costs and reduced margins for IBI compared to other national brewers, who were building new and more efficient, automated breweries. Most of the members of the Schott family (William C., Louis L., Lou) had remained shareholders in IBI, but the reduction in the company's dividends caused at least one family member to divest his holdings. The earnings for IBI continued to erode. By 1964, the IBI Directors decided to replace the founder and President of IBI, Bruce Berckmans, because of shareholder discontent and disappointing profitability. The new President, Albert Roach, was elected by only a one-vote margin. The former President of Bavarian’s, Wm. R. Schott, supported the new President.
The Beginning of the End, and the Bavarian Brewery Closing
In 1965, the struggles of IBI continued and some shareholders in the company expressed concerns with the practices of President Roach. A proxy fight ensued over the control of IBI, headed by Terry J. Fox and Charles George. In a close 5-4 Board vote, the four opposition Board members, including Wm. R. (Bill) Schott and Roach, were removed. The departure of Bill from IBI ended the Riedlin and Schott family’s involvement in Bavarian Brewing Co., which had begun in 1882 and lasted for over 83 years. Also in July of 1965, IBI threatened to close the Bavarian plant. Negotiations occurred between Covington Mayor Bernard Eichholz, the new Chairman and President of IBI, Fred George, and union representatives. Eichholz wanted to retain the City's oldest and largest employer, which provided jobs to over 200 employees and contributed $1.17 million annually into the local economy. After concessions were made, it was agreed that some of Bavarian's delivery drivers would take jobs with various distributors; this move would reduce costs for IBI, who claimed they were losing $1,400 per day on the Bavarian Plant. A couple months later, Terry Fox became President and Chairman of IBI. In March of 1966, this IBI chief executive and the new Board decided to license Bavarian/s to Associated Breweries, which was based in Detroit and the eighth-largest brewery in America at that time. IBI also licensed Old Dutch, made in Findlay, OH to Associated. Arrangements were made to produce Bavarian/s at Associated's plants in Evansville, IN and Detroit, MI, meaning it would continue to be available in the Cincinnati area.
However, these changes signaled the end for the future of the Bavarian Brewery Plant and its workers. Ultimately, IBI had determined it could not be profitable in brewing and decided to exit the beer business altogether. In June of 1966, IBI liquidated two of their remaining breweries, one located in Findlay, OH and the Bavarian Brewery plant in Covington, KY. (See the Bavarian Brewery Closing.) IBI then acquired a controlling interest in Aberdeen Management and changed their name to that firm in 1967. The accompanying stock certificate has the signature of Terry Fox and was actually dated after IBI liquidated its breweries. The photo is courtesy of Timothy Holian, author of the "Over the Barrel" series.
CONTINUE TO
Period 11 - Brewery Closed & Sold (1967-95)
Closed, But Not Entirely Gone
Even though the sales of Bavarian/s had not grown in recent years, there were still many loyal Bavarian/s beer drinkers and there was a continued demand for the beer. Associated was easily able to accommodate this demand primarily by brewing and bottling Bavarian/s at their Evansville, IN, brewery. Bavarian/s was also brewed at other Associated breweries until they went out of business around 1972. Thereafter, other entities still continued to brew Bavarian/s somewhat longer.
Comment: Around 2018, a microbrewery in Covington, KY, Braxton Brewing Co., mimicked Bavarian/s Select Beer three-flag logo that Bavarian Brewing Co. developed, but for a beer they introduced as Bavarian Style Select Lager. Note this is a slightly different name than Bavarian/s Select Beer. The initial distribution was limited and only available in kegs. A year or two later, in late 2019, Braxton increased the availability of this beer by making it available in cans. This occurred shortly after the opening of Kenton County Government Center, which repurposed Bavarian's former Brew House as office space. However, Braxton's Bavarian Style Select Lager Beer is apparently made differently than the former Bavarian/s Select Beer, and it is believed the beer features a somewhat different taste than before, even though Braxton claims they obtained the original formula used by Bavarian Brewing Co. In addition, the storied history behind the three-flag logo, which is explained under 9A. Bavarian/s New Look, was evidently unknown to Braxton.
T I M E L I N E
To place the events described above in perspective, following are some major events that occurred in the Bavarian Brewery Time Period 10: 1959 - 1966:
-
Alaska & Hawaii are states (1959)
-
Vietnam War begins (1961
-
Reds are NL Champs (1961)
-
J. F. Kennedy is elected President (1961-1963)
-
J.F. Kennedy is assassinated (1963)
-
Lundon B. Johnson become President (1963-1965)
-
I-75 next to the Brewery & Brent Spence Bridge Opens (1963)
-
Civil Rights Act (of 1964); Medicare / Medicaid enacted (1965)
-
Watts Riots (1965)
-
Vietnam War escalates (1965)
-
Lyndon B. Johnson is elected President (1965-1969)
For a summary of all the periods in the history of the Bavarian Brewery, please see the entire Timeline.
SOURCES:
Newspapers.com and Cincinnati Enquirer
Holian, Timothy J., Over The Barrel Volume Two, pgs. 196-198.
Robert A. Musson, M.D., Bavarian Brewing and the rest of Northern Kentucky, Volume IX, pgs. 53 - 63.
Riedlin and Schott family items and information.
Trousdale, C.B., A History of the Bavarian Brewery, 1954
The background is the top portion of a diagram,
which explains the process IBI used in brewing their beer.
