Joseph Schiltz Brewing Company was a United States beer company launched out of Wisconsin in the 19th century. Schiltz was known for making Wisconsin famous because of its original flavor that attracted customers. After the company’s original owner, August Krug, died in 1856 Joseph Schiltz took over managing the company. Over the next two decades the company grew to become one of the biggest breweries in Milwaukee. Joseph Schiltz died in 1875 because a ship he was on sunk coming back from Germany. This is when the company’s demise began. After several new managers were filtered though the company they made a crucial mistake then led to their downfall by cutting cost by replacing some of the malted barley with corn syrup and swapping cheaper hop pellets instead of using fresh hops, and shortening production time by a method they called accelerated batch fermentation. This cut production time from 25 days down to 15 days. If Joseph Schiltz Brewing Company focused more on quality control and customer satisfaction which proved successful for the company until new management did the opposite hoping that their customers would not be able to notice much of a difference they might still be one of the top breweries today.
Table of Content
1.Introduction
-Brief history
-Reason for companies collape
Introduction
This essay will examine why cost cutting led to the collapse of one of Americas top beer brands, and how cutting costs can cause an organization to collapse.
Brief History
Schlitz's began in 1846 by August Krug. August was an immigrant to the United States who originally resided in Bavaria. He was in the restaurant business and had a goal to have his own beer to sell in his restaurant which was located in Milwaukee at the time. Two years after he introduced his company he decided he was ready for the next step of hiring employees in an attempt to bring his small