Pabst Brewing Places Schlitz Brand on Hiatus, Ending 177-Year History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44 minutes ago
0mins
Source: seekingalpha
- Production Hiatus: Pabst Brewing Company has confirmed the hiatus of Schlitz Premium due to unsustainable economics, indicating that the brand's volume has fallen below the minimum production requirements at the Anheuser-Busch plant in Texas.
- Historic Brand: With a brewing history of 177 years, Schlitz was the largest brewer in the world during the 1950s; however, cost-cutting measures that altered its recipe led to a decline in brand loyalty and sales.
- Market Impact: The cessation of Schlitz production marks the end of an era and reflects broader changes in the U.S. beer market, where many century-old brands face similar challenges, potentially affecting consumer perceptions of traditional brands.
- Cultural Legacy: Schlitz has a rich history in Chicago, having provided drinking water to residents after the Great Chicago Fire of 1871, and its disappearance signifies a significant loss to local culture and history.
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Analyst Views on BUD
Wall Street analysts forecast BUD stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 83.360
Low
75.00
Averages
80.00
High
85.00
Current: 83.360
Low
75.00
Averages
80.00
High
85.00
About BUD
Anheuser-Busch Inbev SA is a Belgium-based company. The Company is primarily engaged in the manufacturing of beer. The Company operates through six segments: North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Capacity Enhancement Investment: Anheuser-Busch's $5.8 million investment in the Williamsburg brewery aims to boost production capacity for Michelob ULTRA, the nation's top-selling beer, thereby reinforcing its leadership in the rapidly growing beer market.
- Technical Training Center Development: This investment will also fund a new technical skills training center, with plans to upskill over 90% of the manufacturing workforce over the next five years, ensuring the company's competitiveness in technical and management systems.
- Veteran Employment Support: Anheuser-Busch collaborates with the Manufacturing Institute to facilitate veteran entry into manufacturing, with nearly 20% of the Williamsburg brewery's workforce being veterans or active service members, highlighting the company's commitment to veteran career development.
- Long-term Economic Impact: Over the past five years, Anheuser-Busch has invested nearly $50 million in Williamsburg, demonstrating its role as an economic driver in Virginia and laying the groundwork for the future of American manufacturing.
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- Production Hiatus: Pabst Brewing Company has confirmed the hiatus of Schlitz Premium due to unsustainable economics, indicating that the brand's volume has fallen below the minimum production requirements at the Anheuser-Busch plant in Texas.
- Historic Brand: With a brewing history of 177 years, Schlitz was the largest brewer in the world during the 1950s; however, cost-cutting measures that altered its recipe led to a decline in brand loyalty and sales.
- Market Impact: The cessation of Schlitz production marks the end of an era and reflects broader changes in the U.S. beer market, where many century-old brands face similar challenges, potentially affecting consumer perceptions of traditional brands.
- Cultural Legacy: Schlitz has a rich history in Chicago, having provided drinking water to residents after the Great Chicago Fire of 1871, and its disappearance signifies a significant loss to local culture and history.
See More
- Production Investment: Anheuser-Busch's $5.8 million investment in its Williamsburg Brewery will enhance the production capacity of Michelob ULTRA, ensuring its leading position in the U.S. market while supporting local economic growth and job opportunities.
- Technical Training Center: The investment will also fund a new technical skills training center aimed at upskilling employees, with plans to enhance the skills of over 90% of the manufacturing workforce over the next five years, thereby boosting the company's overall competitiveness.
- Veteran Employment Support: Anheuser-Busch continues its collaboration with the Manufacturing Institute to provide career resources for veterans, with nearly 20% of the Williamsburg workforce being veterans or active service members, reflecting the company's commitment to veteran career development.
- Long-term Economic Impact: Over the past five years, Anheuser-Busch has invested nearly $50 million in Williamsburg, demonstrating its role as an economic driver in Virginia and its commitment to the sustainable development of American manufacturing in the future.
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- Brand Value Leadership: Corona has been recognized as the most valuable beer brand globally for the third consecutive year, with an 8.3% revenue increase outside its home market in 2025 and double-digit volume growth in 30 markets, showcasing the brand's strong market performance and sustainable growth potential.
- Strong Market Performance: In Q1 2026, AB InBev achieved all-time high revenues and volume growth, with Corona's sales outside its home market growing by 16%, indicating its increasing influence in global markets, particularly due to its role as the first global beer sponsor of the Winter Olympics.
- Portfolio Advantage: According to Kantar BrandZ 2026 rankings, AB InBev holds 8 of the top 10 beer brands globally, including Budweiser and Modelo, which not only solidifies its market leadership but also demonstrates the diversity and competitiveness of its brand portfolio.
- Long-term Growth Strategy: AB InBev's Global Chief Marketing Officer, Marcel Marcondes, stated that the brand's ongoing success stems from long-term brand building and market strategies, which not only enhance brand recognition but also lay a foundation for the company's future sustainable growth.
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- Sales Decline: U.S. beer, full malt beverages, and cider volumes fell 6.3% year-over-year through the week ending May 2, according to Nielsen data, indicating significant consumer spending pressure amid rising costs.
- Convenience Store Struggles: Sales in convenience stores like 7-Eleven and Wawa dropped approximately 9% year-over-year in the two weeks since April 26, highlighting the adverse effects of high gas prices on impulse purchases, particularly as average gas prices reached $4.51 per gallon.
- High Gas Price Markets: California, the state with the highest gas prices at about $6.16 per gallon, experienced a 16% decline in beer volume from the four weeks ending April 4 to the four weeks ending May 2, with Arizona and Texas also seeing notable declines of 10% and nearly 7%, respectively.
- Consumer Sentiment Decline: U.S. consumer sentiment hit a record low in May, with one-third of respondents citing gas prices as their primary concern, indicating that while brands like Michelob Ultra remain stable, the overall market faces significant challenges.
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- Sales Decline: U.S. beer, full malt beverage, and cider volumes fell 6.3% year-over-year through the week ending May 2, reflecting a significant drop in consumer confidence to multi-year lows, with the decline exceeding expectations and indicating market fragility.
- Convenience Store Pressure: The convenience channel has seen a notable 9% year-over-year drop in volumes over the two weeks since April 26, closely tied to reduced gas station traffic and impulse purchases, suggesting that rising gas prices are impacting consumer spending behavior.
- High Gas Price Impact: Average U.S. gasoline prices have surged approximately 52% since the onset of the Iran conflict, with California's prices reaching $6.16 per gallon, leading to a 16% decline in beer volumes over four weeks, highlighting the intensifying consumer pressure in high fuel cost markets.
- Brand Performance Divergence: While overall sales are declining, AB InBev's Michelob Ultra remains stable, whereas Bud Light and Budweiser are experiencing double-digit volume declines, with Boston Beer performing the worst, Molson Coors losing market share, and Constellation Brands gaining traction against competitors.
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