The Rise and Fall of Pabst Brewery
Executive Summary
What was once the second largest brewery in the U.S., Pabst is now a virtual brewery headquartered in Texas and brewed by Miller Brewing located in Milwaukee, Wisconsin. The descent of Pabst Brewery can be attributed to a few key difficulties such as poor use of new product development, organizational mismanagement, and increased competition.
Not enough resources were put back into the organization to ensure effective and efficient new product development. Pabst Brewing had poor organizational cash flow, inaccurate tax reporting, a lack of corporate level support, and a loss of market share due to increased competition including the introduction of non-alcoholic and light beer. In addition, the corporation suffered a significant setback when traces of PCB were found in over 100 train cars of Pabst beer, leading to an unprecedented and crippling recall.
The Rise and Fall of Pabst Brewery
From the signs atop local skyscrapers to its professional baseball team, Milwaukee wears its pride in its association with the beer industry openly. Pabst Brewing Company laid the foundation for the industry that helped make Milwaukee famous. At its peak "during the 1970s, Pabst ranked third in sales nationally", and by the mid 1990s Pabst found itself struggling to hold onto the number six position (Price, 1996). How does a company so entrenched in the Milwaukee community find it necessary to close its doors after decades of success? The fall of Pabst cannot be traced to any one cause. Instead, the combination of poor product development, mismanagement, and stiff competition all contributed to the failure ...