INTRODUCTION

BACKGROUND

Brief History of the US Brewing Industry

Locational Factors in the US Brewing Industry

Locational Factors in the Ale Era

Locational factors of the Lager Era

Cultural Factors
Economic Factors
Legal Factor

Locational Factors of the Concentration Era

Economic Factors
Cultural and Other Factors

Illinois: Breweries and Germans

The Brewing Industry in Illinois
Germans in Illinois

METHODOLOGY AND FINDINGS

The Study Question

The Data

Methodology and Findings

CONCLUSION

REFERENCES

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 INTRODUCTION

 

There has been tremendous growth in the number of breweries in the United States in the past two decades with the "introduction" of microbreweries and brewpubs. This renewed interest in beer has attracted academic research into the history, economics, and geography of the brewing industry. In 1966 Baldwin noted a lack of such studies, especially geographical studies. But several studies of the industry have been done since then (Downard 1973, Dick 1981, Greer 1981, Cook 1987, Kelsey 1988, Smith 1990, Higgins 1993, Peterkin 1996, Simon 1998). Many of these have been of a non-geographical nature, yet interest in the geography of the industry has grown as well.

An earlier expansion in the number of breweries in the United States occurred during the latter half of the nineteenth century. This growth coincided with a large increase in the number of German immigrants coming to the US. Large numbers of these Germans settled in the mid-western states, including Illinois.

Many writers have qualitatively discussed this historical relationship between German immigration and the number and the location of U. S. breweries (for example: Cochran 1948, Alexander 1963, Baldwin 1966, Dick 1981, and Smith 1990). John Alexander’s (1963) discussion of Germans and the brewing industry is quoted in Dick (1981, p 200):

Here the location of a particular type of people who have both an unusual desire for the beverage and a particular aptitude for making it is a determining influence on the location of this industry. Germans have long been recognized as adept braumeisters, and many brewery companies bear German names. Few other industries in the United States have a locational pattern that illustrates so well the power of an ethnic factor in influencing location.

Baldwin (1966 pp. 25-26) writes, “Specifically, it was the German segment of these immigrants who were so intimately involved with the growth of brewing in America . . ." Although most brewery studies discuss this German influence, I have found no quantitative studies on the importance of German immigration as a locational factor in the U. S. brewing industry. Furthermore, little research has been done on the history of the brewing industry in Illinois. Illinois’ neighbor to the north, Wisconsin, is well known for its beer production ability and its heavy German population (beer and brats). Yet, Illinois also was a major brewing state in the nineteenth century. The Chicago Tribune noted that “Chicago was once considered the beer capital of the United States” (Sawyers 1989) and not without reason. Illinois was also a destination for a large number of German immigrants during the waves of German immigration in the 1800s.

The question to be studied is quite straightforward: what is the relationship between the number and location of German-born residents to the number and location of breweries operating in Illinois from 1870 to 1919?

 

# of breweries = f (# of German born residents)

 

This study describes a statistical connection between Illinois’ brewing industry and its German population during the late 19^th and early 20^th centuries.

The need for this research is based on a number of factors. There is growing interest in the consumption of beer and in the history of the brewing industry in the United States. Most of the research on the brewing industry has been of a non-geographical nature and the geographical research on brewery location has been qualitative rather than quantitative. Finally, little has been written on the location of breweries in Illinois.

This paper will begin with a brief overview of the history of the U. S. brewing industry. I will then identify and discuss the brewery locational factors within this historical context. An examination of German immigration to Illinois and the number of breweries in Illinois during the second half of the nineteenth century will follow. This will prepare us for a discussion of the available data, and the research design and results.

 

BACKGROUND

Brief History of the US Brewing Industry

Baldwin (1966) has identified three eras of the American brewing industry based on the number of breweries operating: the ale era up to 1840; the lager era from 1840 to 1873; and a period of concentration from 1873 to 1979 (figure 1). It appears that we are currently in a fourth era that is characterized by renewed growth in the number of breweries as changes in technologies and laws have promoted a new microbrewery industry.

The ale era began with the earliest settlements along the East Coast and continued up to about 1840. This era was characterized by slow growth in the number of breweries and by the production of ales, much of which was produced at home. The number of breweries reached 132 by 1810 and about 400 by 1840.

The lager era began with the operation of the first lager brewery in the US in 1840. This period is characterized by rapid growth in the number of breweries, which peaked in 1873 with 4231 breweries operating in the United States. The rapid increase in the number of breweries after 1840 was the result of a gradual change from the home brewing of ales to the commercial brewing of lager beers, the preferred beer of the large population of German immigrants. Lager beer requires a two-week “lagering” period during which the temperature must be kept near freezing. This requirement along with the increased demand from the German immigrants encouraged commercial brewing and resulted in a dramatic increase in the number of breweries.

Figure 1.  Number of breweries in the US and Beer Production, 1810-1964 (from Baldwin 1966).

The lager period was followed by a period of concentration. A slow and steady decline in the number of American breweries was accompanied by a steady increase in beer production as breweries merged and took advantage of new economies of scale. Prior to prohibition in 1920 approximately 1600 breweries were in operation (Smith 1995). On April 7, 1933, the 21^st amendment to the US constitution was ratified and prohibition was repealed. By June, thirty-one breweries had reopened and 756 were back in operation in 1934 (Bull 1984), but the number of breweries soon continued its decline.

The current era is a second period of growth represented by the increasing number of microbreweries. Peterkin (1996) states that the beginning of the craft brewing industry in the United States began in 1979 with the repeal of a prohibition era law banning home brewing. By mid-1995 approximately 606 craft breweries were operating in the US.

 

Locational Factors in the US Brewing Industry

The factors influencing the number and the location of American breweries can be organized into four categories: cultural factors, economic factors, legal factors, and other factors (figure 2).

CULTURAL FACTORS Pre-German – ales German Immigration Effect on production Effect on consumption Introduction of lagers ECONOMIC FACTORS Raw Materials and Transportation Costs Industry Concentration LEGAL FACTORS Temperance and Prohibition Other Taxes The civil war Anti-trust laws OTHER FACTORS Historical inertia Chicago Fire Other

Figure 2. Locational Factors in the American Brewing Industry

 

Locational Factors of the Ale Era

Both cultural and economic locational factors could be expected to have had an influence during the ale era of brewing in America. Prior to the settling of North America beer was a popular drink in Europe. It was often used as a substitute for contaminated water and it was therefore a standard provision on ships making the trip to the New World. Early colonists drank ales that were popular back in their native England. These brews were prone to spoilage, but could easily be brewed at home where most early brewing took place. The first commercial breweries therefore were market oriented and arose in the urbanizing areas of the northeast. Furthermore, the procedure for brewing ales requires fermentation at temperatures of less than 75°F which are more easily attained in the north. Further south the stronger spirits were manufactured.

 

Locational Factors of the Lager Era

The lager era is characterized by a rapid increase in the number of breweries in the United States (see figure 1), especially in the mid-western states of Wisconsin, Minnesota, Illinois, Michigan, and Ohio. Concurrently, growth continued in the market oriented northeast. These northern and midwestern locations can be explained by cultural and economic locational factors. Furthermore, the large increase in the numbers of breweries can be explained by the German preference for lager beer and by idiosyncrasies in the lager beer brewing process which makes the home brewing of lager beer more difficult than that of ales. Many of these new breweries brewed lager beers and were owned and operated by German immigrants.