San Antonio Express-News (Sunday)

Pabst Brewing headquarte­rs returns home to Alamo City

- By Madison Iszler STAFF WRITER

The company behind such storied suds as Lone Star and Pabst Blue Ribbon is calling San Antonio home — again.

Pabst Brewing Co. recently closed its offices in Los Angeles and Dallas, and is renovating two floors for its new headquarte­rs at the Rand Building at 110 E. Houston St. downtown. The building is owned by local developer Weston Urban.

The company has operated a San Antonio office for years and already had about 60 to 65 employees here, said general manager Matt Bruhn. Pabst plans to hire 20 to 25 workers over the next few months and will have 115 to 120 employees here when fully staffed.

“San Antonio is filled with opportunit­y and creativity,” he said. “It has a great talent pool, high quality of life and is experienci­ng a cultural boom that we’d really like to be a part of. The affordabil­ity of the city does make it attractive to business(es) and employees.”

Sean Attwood, vice president of tech developmen­t at the San Antonio Economic Developmen­t Foundation, echoed

Bruhn. The organizati­on worked with Tech Bloc’s Tech Talent Central and co-working space Geekdom, which is housed at

the Rand Building, to attract Pabst to San Antonio.

“Costs are a significan­t considerat­ion, but culture, talent and the ability to attract and retain talented employees who want to live here is a significan­t part of that picture when a company decides where they place their headquarte­rs,” Attwood said.

Pabst, which outsources

its beer-making, is not receiving any incentives for the relocation.

News of Pabst’s new headquarte­rs was first reported by the San Antonio Report.

The business that became Pabst Brewing Co. was founded in Milwaukee in 1844, changing hands and headquarte­rs several times since then. It is currently

owned by private equity firm TSG Consumer Partners and entreprene­ur Eugene Kashper, and the company owns more than 50 brands.

Pabst is the seventhlar­gest beer company in the U.S. by production, down from fourth place in 1980, said Lester Jones, chief economist at the National Beer Wholesaler­s

Associatio­n.

Its share of the market — which he put at roughly

212 million barrels annually — is about 2 percent, or a little more than 4 million barrels.

While the company’s foothold has slipped amid increasing competitio­n from large players and craft brewers, it remains “a significan­t player … (with) a very broad portfolio,” Jones said.

Pabst’s connection to San Antonio stretches back years.

Beer industry magnate Paul Kalmanovit­z and his S&P Co. acquired Pabst in 1985 and took over operations at the former Pearl Brewery.

Pabst moved its headquarte­rs to San Antonio in 1996 after closing its Milwaukee brewery. Lutz Issleib, Pabst’s president at the time, lived in San Antonio and spearheade­d the relocation.

Pabst bought nearly a dozen brands in 1999, including Lone Star.

But the Pearl plant grappled with increasing competitio­n and its owners didn’t upgrade the brewing equipment, said Jeremy Banas, author of

“Pearl: A History of San Antonio’s Iconic Beer.” The quality of the ingredient­s also was lacking.

Despite employees’ efforts to keep the brewery open, S&P Co. shuttered it in 2001 and laid off more than 300 workers.

The closure dealt a significan­t blow to the area.

“It was part of the economy, part of the culture,” said Banas, who also coauthored “San Antonio Beer: Alamo City History by the Pint” with former Express-News beer writer Travis E. Poling. “It pumped so much money into the economy, and

they did so much with the community.”

Pabst moved its headquarte­rs to the Chicago area in 2006 but kept an office here, initially at the Pearl and later near the airport and at the Rand Building. The company eventually moved its headquarte­rs to Los Angeles.

Its best-known brand, Pabst Blue Ribbon, or P.B.R., underwent a resurgence in the early 2000s as snowboarde­rs and skaters embraced the budget-friendly, no-frills beer.

Part of the appeal? “The marketing of no marketing,” as a New York Times Magazine headline put it in 2003. Sales exploded during the recession, with retail volume reportedly jumping 20 percent in 2009.

Pabst’s independen­t ownership status fed into its coolness factor. P.B.R. became “hipster beer,” Banas said.

“It’s your grandfathe­r’s beer, but it’s also not your

grandfathe­r’s beer anymore,” he said. “You’re reclaiming it for yourself.”

The brand’s popularity began waning several years ago, Bruhn said, but Pabst has since expanded its P.B.R. offerings. The company launched a stronger lager, hard coffee, seltzers and whiskey, and interest has picked up again during the coronaviru­s pandemic.

“We’ve done a lot of innovation and brand work on it,” he said. “With (COVID-19) hitting, we started to see strong growth again.”

Pabst, like many others in the industry, has been battered by the pandemic. Nearly 30 percent of the company’s business comes from bars, pubs, restaurant­s and similar venues, many of which remain closed or are operating at limited capacity.

“That business is coming back, but very slowly,” Bruhn said. “It’s pretty volatile and uncertain in that space.”

The popularity of flavored malt beverages and alcoholic seltzers is rising, and there are opportunit­ies for Past to expand its brands into those areas, he said.

The company also has a distributi­on and sales deal with New Holland Brewing Co. and has worked with the brewery on several products, including Pabst Blue Ribbon Whiskey.

New Holland is a Michigan brewery known for its Dragon’s Milk stout.

“We have a lot of cool brands, which will keep growing as they innovate aggressive­ly, and then a pretty cool craft partnershi­p, which is doing really well for us,” Bruhn said.

What about San Antonio breweries?

Pabst has no plans currently to work with local breweries but

“would never rule it out,” he said.

 ?? Lisa Krantz / Staff photograph­er ?? Matt Bruhn, general manager of Pabst Brewing Co., shows off the company’s new headquarte­rs at the Rand Building downtown. “San Antonio is filled with opportunit­y and creativity,” he says.
Lisa Krantz / Staff photograph­er Matt Bruhn, general manager of Pabst Brewing Co., shows off the company’s new headquarte­rs at the Rand Building downtown. “San Antonio is filled with opportunit­y and creativity,” he says.
 ?? Lisa Krantz / Staff photograph­er ?? This is the bar in Pabst Brewing Co.’s new headquarte­rs. When fully staffed, the office is expected to employ 115 to 120 workers.
Lisa Krantz / Staff photograph­er This is the bar in Pabst Brewing Co.’s new headquarte­rs. When fully staffed, the office is expected to employ 115 to 120 workers.

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