THE BEGINNINGS
- Of Bavarian Brewery
THE BEGINNINGS
- Of Bavarian Brewery
ADS - From Newspapers
8. The WILLIAM C. SCHOTT FAMILY
& POST WORLD WAR II YEARS (1946 - 1952)
The Second World War was over in Europe on May 7, 1945, but the final ending of the war came when Japan surrendered on September 2, 1945. However, it took months before many enlisted men returned home and rations were eliminated. Because European industries were largely destroyed or in need of repair, the U.S. was in a position to help supply many global needs. Meanwhile, as men who had served in the military obtained jobs at home and started families, the generation of the Baby Boomers began. This period saw the beginning of a large economic expansion in America. It benefited nearly all industries - including breweries - and the increased national wealth led to a strong increase in the American demand for beer. These national changes echoed locally at the Bavarian Brewing Co.
MANAGEMENT
As mentioned in the previous section, there was some reorganization of the Bavarian Brewing Co. management toward the end of WWII. The executives beginning in 1946 were: Lou Schott, President; Will Schott, Vice President and Bill Schott, Secretary/Treasurer. Joseph Vehr, the Office Manager/Comptroller, was a fourth Director. Therefore, two of the four Directors were father and son; Will and Bill. In addition, Ray Hoffman was hired as the General Manager in 1946. Hoffman had previously worked for the Consumers Brewing Co. in Newark, OH. Also in 1946, brewmaster Walter Gruner passed away and his son, Albert Gruner, succeeded him, with Henry Wetzel becoming the Assistant Brewmaster.
The President of Bavarian in 1946, Lou, was an older brother of Will's and they had a close relationship. Will even named his youngest son, Louis, after his brother Lou. It is interesting to note that even though Will Schott was married to Lucia Riedlin, the daughter of Wm. Riedlin who incorporated the brewery and is considered to be its founder and was President of the Riedlin Company during Prohibition, which included the brewery property, Will was never President of the brewery after Prohibition; always Vice President - from 1938 until 1959.
The brewery was also dependent upon other employees for its success. Key Bavarian managers in the late 1940s were: Arthur Helmering, Route Superintendent; George Theele, Bottle Shop Foreman; Joe Ponzer, Sales Manager; Larry Schrand and Courtney Schrand, Bottling Superintendents; John Collins, Shipping Superintendent; James Caldwell, Chief Engineer; and, Jack Shannon, Branch Manager. Some of these men, and other important employees at the Bavarian Brewing Co., are shown on the side in front of the brew kettle. Please select the picture for individual names. After the Heidelberg Brewery was acquired by Bavarian in 1949, Walter Zannis became Brewmaster of Plant No. 2. In 1951, Carl Moeller became Master Brewmaster of both plants.
c. 1950. Key Managers at Bavarian Brewing Co. Source: Behringer - Crawford Museum.
After WWII, brewery management and ownership shifted away from an equal-division arrangement between the three Schott Brothers (George, Lou and Will). When George resigned, he apparently sold his brewery interest to his brother Will. Therefore, the majority ownership—about two-thirds of the Bavarian Brewing Co.’s privately held common stock—became principally vested with the families of William C. (& Lucia Riedlin) Schott and their two sons. The remainder of the stock, and about one-third of the ownership interest, was vested with Will's brother Lou and his family.
Will's sons also became more active in the brewery. His oldest son Bill joined the company beginning around 1940 and became a Director when George resigned in 1945. Will's youngest son Louis L. Schott joined in 1948 after serving in WWII and graduating from Dartmouth College. Louis became the Cincinnati Branch Manager in 1949. By 1951 he was Assistant Secretary and Assistance Treasurer to his brother Bill. In 1952, Louis became Treasurer and Bill became Secretary. Around that same time, Ray Hoffman also became Vice President, in addition to acting as the General Manager.
THE BREWERY OPERATIONS AND ITS PROPERTIES
During the last year of WWII, Bavarian produced 85,447 barrels for the fiscal year ending September 30, 1945. After WWII, the demand for beer increased as men returned home from the war. However, restraints that limited the ingredients for beer reducing its production did not immediately disappear. Bavarian, as well as other brewers, had difficulty producing sufficient quantities of beer. This was indicated in a Bavarian ad in October of 1946, over a year after Japan surrendered, which said "Although government restrictions on beer making have been modified, it will still be a while before you can get all the Bavarian's you want." However, a year later, the shortage of ingredients was resolved. By the end of fiscal year ending September 30, 1948, Bavarian was producing 204,879.5 barrels of beer, an increase of nearly 120,000 barrels in just three years. They were operating 24x7 and were on pace not only to exceed the output of 216,000 barrels that the brewery achieved in 1914, but would soon exceed their maximum output for the plant. As explained and shown in the following, the main brewery was physically constrained.
PROPERTY ACQUISITIONS
With the growth of the brewery after WWII, it became evident that it was necessary to expand the brewery’s grounds by acquiring adjoining properties that were disposed of during Prohibition. Consequently, arrangements had begun - possibly even before WWII - to acquire certain adjacent parcels. Two of these parcels acquired after WWII, Parcels a and b, are identified and discussed below. Parcels a and b were acquired by the Bavarian Brewing Co. from George Rehkamp around 1947. A description of these two parcels and a plat identifying them are below.
c. 1949. The aerial photo on the left above shows the main brewery complex and two parcels, A and B, which were previously part of the brewery. These two parcels were acquired shortly after WWII. The site plan on the right above indicates the brewery property and the specific uses of the buildings in the late 1940s.
Parcel a. This parcel included the former Brew House (C) and the Mechanical Building (D) and was located directly across from the Boiler House & Bottling Department on the north side of Lehmer Street. It was acquired in late 1947 for $13,000 from George Rehkamp. Apparently, a portion of the Brew House was occupied by a neon sign works company, known as the Dixie Sign Co., and also at some point possibly by Lou's Signs. Some of their signage creations were made for the brewery; please see Signs: Neon, for some examples. The Mechanical Building fronted on Lehmer Street was occupied by a home improvement company. Although these two buildings did not share a common wall, there was a roof canopy between them. However, the old Brew House shared a common wall with the Office Building to the north. (When the old Brew House was demolished in 1956, it was done so carefully so that Office Building was not damaged. )
Parcel b. This parcel was acquired simultaneously with the parcel above in 1947, or a little later, and was also believed to be owned by George Rehkamp. It included the old Ice Plant (F) built in 1895, which was used for auto repairs and a tin shop, according the the Sanford Insurance Map presented above. It may have also been used, at least in part, by the Kahnmann & Rehkamp Dairy. Some roof canopies extended between parcels a and b, which explains why these two parcels appear to be connected in the aerial photo.
A key property that was not reacquired at the same time as the two parcels noted above was the newer Ice Plant (8), which was occupied by Monarch Ice Cream and eventually obtained by Bavarian several years later. Former brewery buildings that were not reacquired located north of the aforesaid parcels that front on W. Pike Street included the former Office Building (9) mostly used for the offices of the Kahmann & Rehkmap Dairy, and the former Bottling Department (7) used by another dairy company - the Hanneken Dairy. These two properties would remain separately owned in the future and would never form part of the brewery property again. It is noteworthy that the failure to acquire the Ice Plant (8) at the same time as Parcels a and b, was an obstacle for the Bavarian Brewing Co. to expand its main plant.
Bavarian may have had the option to demolish the buildings on the parcels they acquired and expand their facilities. However, it would take at least a couple of years to do so. Around the same time these acquisitions occurred, Bavarian learned that another brewery could be purchased nearby. This would allow Bavarian to more quickly increase their supply to satisfy their demand. So, Bavarian decided to rent their reacquired yet outdated buildings parcels to other businesses and pursue a brewery acquisition. Bavarian made arrangements to acquire the Heidelberg Brewing Co. in 1948 and acquired it in early 1949. It became known as Plant No. 2, as described below and in section 8B. Bavarian's main plant, which was located just several blocks south of this second plant, was known as Plant No. 1. However, this acquistion created challenges within a few years. (See Turnaround Efforts.)
THE MAIN BREWERY COMPLEX (Plant No. 1)
The brewery site as it existed in the late 1940s is outlined in yellow in both the aerial photo and the site plan below. The main brewery property in the aerial photo is shaded in light yellow. As shown, the Bavarian Brewery complex was located between W. 12th and W. 11th / W. Pike Streets, and west of Main Street. An employee parking lot was situated in the northeast corner, but all the brewery buildings owned by Bavarian after Prohibition were located between W. 12th Street and Lehmar Avenue. The later road is not very visible on the photo below, but is viewable on the site plan.Not included as part of the brewery site were several former buildings that had been sold before 1933, because they had become obsolete and were no longer needed for brewing purposes. This was briefly discussed within periods 5. Riedlin Co.'s. and 6. Reopening of the Brewery.
Loayout of Plant No. 1
The brewery complex after Prohibition and post WWII (shaded in yellow) was concentrated between W. 12th and Lehmer Streets and west of (short) Main Street. The older buildings that were obsolete for brewing purposes (shaded in brown), wer sold during Prohibition. As shown, there was one large grouping of various structures that dominated the complex. In addition, there was a smaller grouping of structures on the west side of the site.
There were tow groups of connected buildings. the larger group contained the Brew-Mill House (10), the STock House (C) and the Stock House Addition (11). The smaller group consisted of the Bottling Dept. (House) (6) and the Boiler House (5). However, they were only separated by a driveway, and there was a tunnel between the Stock House and the Bottling Dept. that enabled underground beer lines and utilities between these two groups of buildings. The main group of buildings supported brewing, fermenting and storage along with mechanical equipment and administrative offices. These buildings had had a total of three Fermentation Cellars (A-C) on the uppermost floors and five beer storage Stock Cellars (A-E) on the lower floors. A smaller grouping of structures was located on west side of the brewery site, which were involved in powering the brewery and in distributing beer for sale in bottles and cans. Please know that all the structures in each grouping had doorways to each adjacent structure along with staircases. Therefore, it was possible to go from inside one end of these connected structures to the opposite end. Each of these structures is identified on a Plot Plan and are described in more detail accompanied by floor plans in Plant No. 1 Floor Plans & Equipment.
Improvements (Plant No. 1)
In their efforts to be profitable and keep up with the demand for Bavarian's Old Style Beer, the brewery took various measures. Shortly after WWII, the company began a modernization program to purchase and install new equipment, increasing production capacity and making operations more efficient and economical. To achieve this, the Board approved expenditures of $150,000 in June of 1947 to replace the boilers and sundries brew house equipment.
In December, 1947, approvals were made authorizing $75,000 for the purchase and installation of new fermenters, evaporator condensers, compressors and refrigeration equipment. And in November, 1948, approvals were provided to install new tanks, including those steel- and glass-lined storage tanks installed in the Bottling Department, as shown in photos in section 8A. Bavarian's Plant No. 1.
Ground Level Views (Plant No. 1)
In addition to the aerial views above, ground view photos of the brewery property taken in the late 1940s and early 1950s are shown on the accompanying photos. The first photo shows the main office entrance off of W. 12th Street. However, access to the rest of the brewery complex was primarily from Lehmer Street, which laid between W. Pike and W. 12th Streets. The next photo shows a portion of the Brew House on the right and the side of the original Stock House on the left. The last photo shows the Stocks Houses, Retail Shipping Office and Wash House from Lehmer Street.
PLANT NO. 2 (The Former Heidelberg Brewery)
As noted previously, the Bavarian Brewery was unable to meet the demand for their beer by 1948. Because their main plant was physically constrained, it seemed that a timely solution to their problem was to acquire the nearby Heidelberg Brewery that was involved in some litigation and had financial difficulties. Heidelberg also had some management conflicts, losing their brewmaster, Joseph Ruh, in 1945. (Joseph had formerly worked at Bavarian with his father Anton, as discussed in time periods 3. and 4.) Bavarian acquired the Heidelberg Brewing Co. in February of 1949 and the Heidelberg Brewery became Bavarian's Plant No. 2. It significantly increased Bavarian's production. For more information, please see 8B. Plant No. 2 and 8C. Heidelberg Brewery.
According to audited financial reports prepared by Roden & Weiss, the Heidelberg acquisition allowed Bavarian to increase its production for fiscal year ending in 1949 to 312,487 barrels for that year, an increase of more than 50% from the prior year. In the 1950 fiscal year, Bavarian reached a peak production of 336,157 barrels. In the following year, production declined to 306,170 for fiscal year 1951. In the publication "Over the Barrel" volume two by Timothy Holian, it mentioned that Bavarian instituted some price increases in that year. These increases were stated as fifty cents per draft barrel, twelve cents per case of quarts and eleven cents per case of 12 oz. bottles. This price increase was likely due to an effort to offset increased operating costs caused by having duplicate work forces and equipment. Sales were still not materially impacted the following year in 1952 when Bavarian brewed 306,873 barrels. Even though production remained strong in 1952 and the net profits for the firm were still significant, amounting to $180,128, they had dropped 40.5% from the year before. This decline would have been even more significant had Bavarian not increased their prices again in January of 1952, according to an audited financial report by a different CPA firm Bavarian began using in that year, Wm. H. Mers & Co.
Even though other literature indicated that there was a dramatic decline in sales that began immediately after Bavarian had this price increase in 1952, this decrease was actually more moderate. However, what was a harbinger of larger concerns for the brewer, is that their operating expenses had jumped 18.7% in 1952, which resulted in a substantial drop in their net profit. This trend of rising costs, by operating two nearby plants with duplicate equipment and work forces, would be difficult to abate.
To understand the operations of the Bavarian Brewing Co. in the late 1940s and early 1950s, an understanding of their distribution capabilities is helpful, as presented in the following.
DISTRIBUTION FACILITIES
Bavarian sold more beer in Cincinnati than in Northern Kentucky. Since the I-75 freeway did not exist until late 1963 (even though it is shown on the map) and access across the Ohio River from Covington was more circuitous, Bavarian needed a distribution facility in Cincinnati. A warehouse and garage for delivery trucks had been obtained in the 1940s, but it was rented and became outdated. (See A.) Beginning in 1949, Bavarian began a quest to obtain a new Cincinnati Branch, but had difficulties doing so over a couple of years. They tried to build a facility on Beekman Street, but were unable to obtain zoning. (See B.) They then acquired a former Cincinnati brewery, but it needed major renovations. (See C). Finally, they were able to obtain a facility on Streng Street that was suitable, requiring only moderate changes. (See D.) These properties are shown on the side map and the legend below, followed by descriptions.
A. Warehouse/Garage (At Tafel & McMicken Sts. - Late 1940s)
B. Beekman Street Site (At Fricke Road - 1949 & '50)
C. Former Bruckmann Brewery No. 2 (Spring Grove & Garrard '50)
D. Bavarian's Cincinnati Branch (1212 Streng St. - 1950)
Brewery Plants in Covington, KY:
1. Plant No. 1 (The Bavarian Brewery.).
2. Plant No. 2 (The former Heidelberg Brewery.)
A. Warehouse / Garage
A warehouse and garage facility was leased at Tafel and McMicken streets and was the first distribution center for Bavarian. It was located in Cincinnati to better serve that market. This facility evidently was very close to the former J.M. Schott Bros. Cooperage and the site of the original Cincinnati Galvanizing Co., and may even had been located on the former site of one enterprises at one time. In any event, this property was small and inadequate for the brewery’s needs, making it necessary to replace this distribution facility.
B. Beekman Street Site
In September, 1949, the Bavarian Board approved the purchase of this site for $25,000 at the northwest corner of Beekman Street and Fricke Road, subject to adequate zoning approval. On December 20th of the same year, tentative zoning approval was granted. Bavarian was willing to spend up to $300,000 for a combination warehouse and garage on this site to employ about 90 to 120 people. However, there was considerable opposition from neighborhood residents, and the fate of the rezoning was uncertain by late February of 1950. It appears Bavarian never constructed a structure on this site due to these rezoning issues, and because of an opportunity to acquire another property, as described below. (Today, this property on Beekman Street is occupied by the Ethel A. Taylor Academy, a Cincinnati Public School.)
C. Former Bruckmann Plant No. 2
In September, 1949, the Bavarian Board approved the purchase of this site for $25,000 at the northwest corner of Beekman Street and Fricke Road, subject to adequate zoning approval. On December 20th of the same year, tentative zoning approval was granted. Bavarian was willing to spend up to $300,000 for a combination warehouse and garage on this site to employ about 90 to 120 people. However, there was considerable opposition from neighborhood residents, and the fate of the rezoning was uncertain by late February of 1950. It appears Bavarian never constructed a structure on this site due to these rezoning issues, and because of an opportunity to acquire another property, as described below. (Today, this property on Beekman Street is occupied by the Ethel A. Taylor Academy, a Cincinnati Public School.)
Plant No. 2 is shown from Spring Grove Ave. on the left in the late 1930s. Above is the Bottle Shop and Garage of this brewery as it still exists in 2020 and part of Queen City Steel Treatment Co. However, the main brewery plant was demolished and appears as shown in the far right above.
D. Bavarian's Cincinnati Branch (At the former Bruckmann Plant No. 1)
As they were preparing to renovate the former Bruckmann Plant No. 2, mentioned above, Bavarian became aware of a property located at 1212 Streng Street in Cincinnati. It was a portion of the former Bruckmann Plant No. 1 used as a Bottle Shop and Garage. This property became available shortly after Ideal Packaging Co. acquired a portion of Plant No. 1 from Herschel Condon in August, 1950. This structure would cost much less to renovate than Plant No. 2, and it had a more desirable location. Hence, in November, 1950, the Bavarian Board decided to acquire this Streng Street property at a cost of $172,500. After attempting to establish a Cincinnati Distribution Center for nearly two years, Bavarian was finally able to obtain a facility that would meet their needs for over a decade. This facility was used to distribute Bavarian beer to all of Cincinnati and Hamilton County. To do so, the brewery made use of twenty bottle routes operated by 44 men, nine salesmen and a secretarial staff of eight. There were also eight draft routes served by about 16 men, plus several managers and foremen. Total employment at this facility was about 70 workers; the total storage capacity was 30,000 cases of beer.
1954. The far left photo shows the Cincinnati Branch of Bavarian Brewing Co.
2019. The nearest left photo shows this property as recently occupied and used by Ruthman Pump & Engineering Co.
BAVARIAN'S FLEET OF TRUCKS & DRIVERS
When Bavarian acquired Heidelberg Brewing Co., they added its 15 trucks to their inventory. A couple years later, as they expanded their distribution, the brewer acted to purchase additional delivery vehicles. In 1951, they learned that Baumeister Distributing Co. in Dayton, OH, was going out of business, disposing of seven closed body trucks, a trailer, a sedan and some office furniture in the process. Bavarian paid $20,000 to acquire these items. With this purchase, Bavarian had added and/or possibly replaced at least 22 delivery trucks in just a few years. At the Cincinnati Branch alone, there were 44 drivers. There may have been more than that number at both Plant No. 1 and No. 2 in Covington, bringing the total number of drivers to about 100. In the early 1950s, it is believed that Bavarian employed about 250 people, so drivers appeared tor represent about two-fifths of their employees.
Early 1950s. The photo above showcases most of Bavarian's fleet of delivery trucks. Source: Kenton Co. Library.
Each truck normally had a driver-salesman and an assistant, who could also serve as a driver if needed. By the early 1950s, it appears Bavarian had a total fleet of about 50 trucks and trailers. Bavarian owned three main types of delivery trucks: closed, open (A frame) and tractor trailers. To view a couple of the different truck styles, please click on the photos below. The drivers also wore uniforms, as shown by Fred Brune in the center of the middle photo below (who married a Kleier) and Joseph Schmeh below on the bottom far right. Bavarian was proud of their driver-salesmen. The picture of Joseph, as well as several other Bavarian employees, was recognized in newspaper ads and also displayed in Bavarian's main office, which was partially located in what is now the Riedlin-Schott Room of the Kenton County Government Center.
Please refer to a manual that was created to help explain the work of a driver-salesman and make them more effective. To encourage safe driving, Bavarian held a Safe Driver Banquet each year, awarding special pins to all drivers without any incidents. One such pin, recognizing five years of driving without accidents, in shown below. For a description of one of these banquets, please view a periodic bulletin Bavarian provided to their employees known as the Bavarian Tap that can be found under Corporate Material.
While the Cincinnati Branch served all of Cincinnati and Hamilton County, delivery service to Northern Kentucky was primarily provided by Plants No. 1 and 2 . To help supplement deliveries, Bavarian used numerous distributors. One of their largeest contractors was Stanley Distributors. This company and Bavarian jointly sponsored successful amateur baseball teams in the late 1940s and early 1950s, referred to as Stanley Bavarian. For photos of these teams and a jacket, please see 7A. Sponsorships. Stanley and Bavarian also sponsored certain advertising items together, such as matches and pencils. (See Novelty Items.)
OVERALL RESULTS
The actions Bavarian took after World War II, especially its acquisition of the Heidelberg Brewery, greatly increased its production capacities, reaching a peak annual production of about 336,000 barrels in 1950. However, after a rise in inflation in 1951, and due to increased competition from the large national brewers, sales began to decline. As a result, Bavarian became more aware that operating two plants - with double the work force and equipment, but focused on the same market area - created higher operating costs and an unfavorable business situation. The arrangement also made it more difficult for Bavarian to compete with local and national breweries. These developments created a challenge for Bavarian beginning around 1953, as explored in Turnaround Efforts.)
CONTINUE TO
Section 8A - Bavarian's Brewing Equipment
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 8: 1946 - 1952:
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Local TV broadcasts start in Cincinnati; & Marshall Plan (1947)
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Jackie Robinson plays MLB (1947-56)
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NATO formed (1949)
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Berlin divides to East & West (1949)
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Harry S. Truman reelected as President (1949-1953)
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Korean War begins (1950)
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Eisenhower elected President (1952 - serving until 1961)
For a summary of all the periods in the history of the Bavarian Brewery, please see the entire Timeline.
SOURCES:
Bavarian Brewing Co. Corporate Minutes: Book 1
Newspapers.com and Cincinnati Enquirer
Newsbank, Inc. and the Kentucky Post
Roden & Weiss Audited Financial Report for the Bavarian Brewing Co., ending September 30, 1945.
Robert A. Musson, M.D., Bavarian Brewing and the rest of Northern Kentucky, Volume IX, pgs 24 & 25.
Riedlin and Schott family items and information, including notations on photos by Lucia Riedlin.
C.B. Truesdell, (The History of) The Bavarian Brewery, 1954. (Unpublished manuscript.)
The background photo was the former Ohio Union Brewery before Prohibition. It became the Bruckmann Plant Nol 2 after Prohibition was repealed. The plant was owned by Herschel Condon Brewing Co. in 1949 - 1950. But in April, 1950, it was sold to Bavarian Brewing Co. and briefly owned for possible use as a Warehouse and Garage for their Cincinnati Branch.
