The Christian Schmidt Brewing Company was an American brewing company headquartered in Philadelphia, Pennsylvania. Founded in 1860, it was the largest brewing company in the history of Philadelphia, producing nearly 4,000,000 barrels of beer a year in the late 1970s. When it closed in 1987, it marked the first time in over 300 years that there was no brewery operating in Philadelphia.Wagner, Rich, Philadelphia Beer (History Press 2012), Charleston, SC
History Early history
Christian Schmidt was born in Magstadt, Württemberg, Germany in 1833. He spent three years in Stuttgart, where he learned brewing, before emigrating to Philadelphia, Pennsylvania, at the age of 18.The Manufactories and Manufacturers of Pennsylvania (Galaxy Publishing 1875), p. 61Moyer, David G. American Breweries of the Past (AuthorHouse 2009), After his arrival in Philadelphia, he worked for six months on the Camden & Atlantic Railroad that was being built to Atlantic City, and then secured employment in the brewing business."Brewer Schmidt Dead", Philadelphia Times, September 7, 1894, p. 7 By the late 1850s he had become associated with the brewery of Robert Courtney, which was located on Edward Street near the intersection of Second Street and Girard Avenue in the Northern Liberties neighborhood of Philadelphia. In 1860 Schmidt became a partner in the brewery, which was renamed Christian Schmidt, Kensington Brewery when Schmidt became sole proprietor in 1863. Production in 1860 has variously been stated to be either 500 or 3,000 barrels of ale and porter a year.Robertson, James D. The Great American Beer Book (Warner Books 1978)."Our Brewing Interests, The Philadelphia Times, May 18, 1894, p. 6 By 1873, production had grown to 20,000 barrels a year and in 1880 Schmidt built a new brewery and ice house in order to be able to produce lager beer. In 1887 a new brew house, which doubled capacity, was built. In 1890, the brewery produced 65,000 barrels.
In 1892, Christian Schmidt's three sons, Henry C., Edward A. and Frederick W., became partners in the firm and the name of the brewery was changed to C. Schmidt & Sons.Oberholtzer, Ellis Paxson, Philadelphia – A History of the City and its People Vol. 3, p. 256 (S.J. Clarke 1912) By 1894, Schmidt's was the sixth-largest brewer in Philadelphia. Its principal beers at that time were a pilsner and a dark beer called Puritan.
After Christian Schmidt's death in 1894, Edward A. Schmidt became head of the company. He was a practical brewer and tireless innovator who would lead the company for the next 50 years. By 1896, Schmidt's had an annual capacity of 100,000 barrels.
In late 1896, Schmidt's purchased the Robert Smith India Pale Ale brewery, which traced its origins to 1774 and was then America's oldest brewing concern. In 1888, the Robert Smith brewery had moved to a new plant, located at Thirty-Eighth Street and Girard Avenue in West Philadelphia, that was capable of producing 50,000 barrels annually. The Robert Smith brewery produced ales under the Tiger Head brand. After its 1896 acquisition, the Schmidt brothers operated the brewery through a corporation, the Robert Smith Ale Brewing Co., until Prohibition.
In 1902, the firm was incorporated as C. Schmidt & Sons Brewing Co.
In 1908, Schmidt's Robert Smith Ale Brewing Co. subsidiary purchased the Peter Schemm & Son Brewery, located at 25th and Poplar Streets.
A new state-of-the-art brew house and power plant was opened in 1914 at the Schmidt plant. Located on Girard Avenue just east of Second Street, the brew house was constructed with multi-level tiers and included two copper brew kettles, each with a capacity of 750 barrels. The brew house was designed by architect Otto C. Wolf and was topped with a 235-foot high clock tower that included a "Schmidt's" sign that was illuminated at night."New Brew House and Power Plant of the C. Schmidt & Sons Brewing Co., Philadelphia" The Western Brewer, May 1914, p. 223 After the expansion, the plant was capable of producing 200,000 barrels a year. The combined capacity of the Schmidt's, Robert Smith and Peter Schemm breweries then stood at 300,000 barrels a year.
The Peter Schemm brewery closed in 1918 due to declining profitability brought about by World War I taxes and other wartime restrictions, including a lack of grain."Schemm Brewery Goes out of Business", Allentown Morning Call, May 18, 1918, p. 13
Prohibition era (1920–1933) Like all American breweries, C. Schmidt & Sons was forced to stop selling alcoholic beer in 1920 after Prohibition came into effect. During Prohibition, Schmidt's produced non-alcoholic cereal beverages. Non-alcoholic brands that it produced included Puritan Special and Green Label. Production of non-alcoholic cereal beverages required brewers to first make high-powered beer and then remove the alcohol it contained prior to sale. Except for one raid in 1925 in which 400 barrels and 7,000 cases of high-powered beer that were ready for shipment were found, the company avoided Prohibition violations.
In 1923, the Robert Smith Ale Company brewery property was sold."Activities of Day in Real Estate", The Philadelphia Inquirer, July 7, 1923, p. 5
Post-prohibition era Following the repeal of the Volstead Act in March 1933, Schmidt's began selling 3.2% beer on April 7, 1933. In December 1933, after the 18th Amendment was repealed, it began selling a full-strength "Repeal Beer".News-Comet, East Berlin (PA), December 8, 1933, p. 8
After repeal, Edward A. Schmidt implemented a program to expand and modernize the Schmidt's plant. Extensive modernization and expansion was carried out, and new large capacity buildings and equipment were added. A new ale fermenting and storage cellar was built that was separate from the facilities used for lager beer production. It was equipped with open fermenters and storage tanks made of California redwood. A new office building, malt storage building, gas collecting cellar, and bottling cellar were also built. A canning line was installed that filled Crowntainer cans of beer. Schmidt's became known for its technical innovations and used more of its own original custom-made equipment than any other brewery in the country (most of it designed by Chief Engineer Richard Slama). Schmidt's introduced the quart bottle, 16-ounce bottle, and was among the first breweries to sell cans of beer in six-pack cartons.
In 1934, sales stood at about 106,000 barrels. By the end of 1934, Schmidt's Beer (Light and Dark versions), Tiger Head Ale, Tiger Head Porter and a seasonal bock were being produced.
About a year after repeal, sales began to mushroom and soon reached 500,000 barrels. This made Schmidt's the largest brewer in Pennsylvania, and in the 1930s the company achieved regional distribution.
After 50 years of leadership, Edward A. Schmidt died in 1944. Frederick W. Schmidt, the last surviving son of Christian Schmidt, then served as president for one year before becoming chairman of the board, a position he held until his death in 1949.
Christian H. Zoller, a grandson of Christian Schmidt, served as president from 1945 until his death in May 1958. Under his leadership, the company experienced the greatest sales growth in its history. Schmidt's became the leading brand in the Philadelphia market in 1946, and sales reached 1,000,000 barrels a year for the first time in 1948.The Philadelphia Inquirer, November 29, 1948, p.27 Further modernization and building programs were carried out between 1947 and 1950. An addition to the brew house was built that added a third brew kettle with a capacity of 750 barrels. In 1954, Schmidt's acquired the Adam Scheidt brewery in Norristown, Pennsylvania. The Norristown brewery was capable of producing 500,000 barrels annually. By 1955, Schmidt's sales reached 1,916,708 barrels. Schmidt's relied heavily on a tavern trade, and in 1960 one-third of its sales were still for draft beer, which was nearly double the national brewery average.
In 1958, Carl E. von Czoernig, the 40-year-old great-grandson of Christian Schmidt, became president of the company. Under his leadership, modern marketing techniques were introduced. The company redesigned product packaging to present a modern image, and made improvements in distribution. By 1962, Schmidt's held a 33% market share in the Philadelphia area."Last Laugh", Philadelphia Daily News, July 29, 1986, p. 23 In the mid-1960s, Schmidt's became the first brewer to use computers for production, planning and inventory control. In 1964, Schmidt's purchased the old Standard Brewing Co. brewery on the West Side of Cleveland, Ohio from F. & M. Schaefer Brewing Co. The brewery had an annual capacity of 450,000 barrels, and the purchase enabled further expansion into Ohio, western Pennsylvania and New York state."C. Schmidt Firm will Purchase Ohio Brewery", Camden Courier-Post, March 7, 1964, p. 3 In 1964 Schmidt's produced 2,000,000 barrels for the first time.
In 1971, Schmidt's bought a larger brewery on Cleveland's East Side – one capable of producing 1,500,000, barrels annually – from Carling Brewing Co."Schmidt to buy Cleveland Brewery", The Philadelphia Inquirer, No. 9, 1971, p. 25 The West Side Cleveland brewery was then closed.
In 1972, Schmidt's bought the brands of the Duquesne Brewing Co. of Pittsburgh, whose flagship brand was Duke Beer. Duquesne produced 642,734 barrels in 1971,Leary, Mike, "Small Brewers Finding Life a Little Flat", The Philadelphia Inquirer, June 25, 1973, p. 1 and had been Pittsburgh's second-largest brewer. Schmidt's moved production of the Duquesne brands to its Cleveland brewery and the Pittsburgh plant (which Schmidt's did not purchase) closed."Schmidt's to Buy, Close "Duke" Brewery", The Philadelphia Inquirer, October 25, 1972, p. 25 The closure of the Duquesne brewery caused a lot of bitterness in the Pittsburgh area and a boycott of Schmidt's-produced Duke Beer ensued. Sales of the Duquesne brands plummeted in Pittsburgh, although they did not slip as much in eastern Ohio.
Schmidt's began having financial troubles in the early 1970s,"Schmidt Brewery Loan Denied", York (PA) Daily Record, December 10, 1975, p. 27 as competition from both national and other regional breweries intensified. Purchasing the brands (but not the plants) of failing breweries became a common method employed by regional brewers like Schmidt's to boost sales."Little Brewers Merging to Survive", La Crosse Tribune, April 25, 1972, p. 6 Schmidt's 1972 purchase of the Duquesne brands proved to be the first of five such acquisitions Schmidt's would make over a 10-year period.
Schmidt's held a 25% share of Delaware Valley beer sales in 1972, while Schaefer held 15% and Ortlieb's and Budweiser each had 8%.Leeming, Frank, Jr., "Are You an Average Beer Drinker of the Future?" The Philadelphia Inquirer, April 5, 1972, p. 26
1974 brought price shocks in the commodities used to brew beer, which further compounded Schmidt's difficulties. In October 1974, Schmidt's announced that its Norristown brewery was being closed because it was inefficient."Schmidts Folds Norristown Plant in Dec.", Philadelphia Daily News, October 8, 1974, p. 20 Schmidt's produced 3,470,000 barrels in 1974,"Demand or Brew May Drop", Philadelphia Daily News, January 23, 1975, p.30 about 200,000 barrels less than the prior year, and it lost money for the first time in its history.
Schmidt's share of the Philadelphia-area beer market, which had stood at 33% in 1962, fell to 28% in 1967, 25% in 1972 and 20% in 1975.V. & L. CICIONE, INC., et al. v. C. SCHMIDT & SONS, INC. and Wm. H. Pflaumer & Sons, Inc., 403 F.Supp. 643 (1975)