Dahlke Brewing
dahlke.gif
Lawrence WI



Introduction:

Some forty miles north of Madison, Wisconsin lies a rich farming region known as Marquette County, The territory was named after a Jesuit priest who traveled through on his way to the Mississippi River in 1773. Sixty-three years later, 14 townships remembered Father Marquette and formed a new county in central Wisconsin by preserving his name. Around 1900, when electricity was introduced in Wisconsin, a young man named Gustav Dahlke saw a future in the new technology and promised to bring electricity throughout Marquette County.

Working at a mill in Westfield, Dahlke learned about hydroelectric power. In 1905, Gustav and his brother Edward purchased a mill in Neshkoro and converted it into an electrical power plant, providing the town with electricity for the first time. Dahlke made many improvements to the plant. One improvement was the installation of the first umbrella type generator in the State of Wisconsin.

In 1917, Dahlke bought a power plant, in Lawrence, Wisconsin. This would be the location where he and his family would build a brewery seventeen years later. The power plant provided electricity to the immediate area from sunrise until midnight seven days a week. Gustav started expanding the power plant service also providing 24 hour service. At the height of the power company's service, it provided electrical power to families living over 100 square miles.

After the stock market crash in 1929, the Great Depression had brought the entire nation's economy to a stand still. As banks throughout the country closed their doors, other businesses failed and their employee's families lost their savings and homes.

As customers were dropping their electrical power services to make ends meet, Gustav Dahlke predicted that his business would soon suffer. Immediately upon the ratification of the 21st Amendment - which ended 13 years of National Prohibition — Dahlke saw a future in building a brewery for the people in Marquette County. Dahlke began to convince his family that brewing beer should be their future. This was no easy task. His wife, Alvina, was a tea tottler; his son Harvey, a Marquette University graduate, had a good job as auditor for Schuester's Department Store in Milwaukee; Harvey's wife was a tea tottler; no one in the family had any brewing experience; and money was hard to come by. Somehow, Gustav convinced them all to build a brewery.

The Dahlkes decided to build their brewery, just south of a hamlet in Marquette County called Lawrence. The site was chosen because Dahlke owned the land (former location of flouring mill at Lawrence) and a dam where electricity was already functioning. An deep artesian well, with six-inch head was there to supply pure cold water for manufacturing and sanitation.

Preparing To Make "Sparkling Beer"

On July 20, 1933, the Dahlkes started excavating for the basement of their brewery. The building was designed to be 36 x 73 feet and three stories tall. The basement and first floor was to be cement and the balance of the building as brick. Articles of incorporation were filled on July 24, 1933 and was incorporated for $40,000 and the name of the brewery was the "Dahlke Brewing Company." The Dahlke Brewing Company was totally owned by the Dahlke family and no common stock was available to the public. Gustav sons, Wayne, was installed as President , Harvey, was Secretary and Treasurer.

The brewery was designed by M.R. Rosman in Milwaukee and could produce 25,000 barrels of beer each year. The Dahlke family built the brewery themselves and Gustav was the superintendent during the construction. Ironically, the brewery construction continued with its accidents. On September 25, 1933, Walter Brose was hit in head by a brick while it was being unloaded. Three days later, Aloise Swader's truck skidded off the highway. The truck was so loaded with bricks the truck smashed a telephone pole and hit a tree. Swader suffered two broken legs, two broken ribs, broken pelvis, and several joints cracked. The next day, Arthur Grahn was injured while building the brewery as he fell into nail keg from 4 feet above, wheeling concrete. Gustav Dahlke himself suffered Torn ligament of his right leg while raising plank and stepping upstairs on August 30, 1933.

Wanted: One Brewmaster

Gustav Dahlke wanted the best brewmaster he could find and he shopped around the State, visiting other small breweries for recommendations. In Manitowoc, while visiting Thomas Fricke at the Riverview Brewing Company, Fricke said, "If you want the best 'sparkling beer,' Gustav Kuenzel is your man." Gustav has found his brewmaster.

Gustav Kuenzel was aquatinted with the area because he had owned the Stevens Point Brewery from 1897 through 1902. When the Dahlkes found him, he was brewing for Drewry's Lake of the Woods brewery. He willingly moved his family to Lawrence to become Dahlke's brewmaster. Kuenzel's first brew was made on March 31, 1934.

Kuenzel was an exacting brewmaster. When he made beer, everything had to be perfect. His malt came from the L. Rosenheimer Malt and Grain Company of Kewauskum, and Star Malting of Lomira, Wisconsin. He used Baled Pacific Coast hops from Oregon. He was very particular on his Christmas and Bock beers as he used spices to enhance the flavor of the beer. No beer could leave the brewery without his approval.

Kewaunee Brewery Deal

When the Dahlke family polled their money, Harvey knew that there wasn't enough funds to purchase new brewing equipment and immediately looked into purchasing used equipment. In late May, 1933, Gustav found a brewery in eastern Wisconsin who's selling their old equipment - Kewaunee Brewing Company.

Kewaunee Brewing Company had its old brewing equipment moth balled for over 17 years. Some items dated back to the 1870s. Instead of refurbishing their old equipment, Charles Hopp, of Kewaunee Brewing Company purchased new brewing equipment from Geo. J. Meyer Manufacturing Company in Chicago. Kewaunee needed to sell their old equipment to finance the new equipment Harvey Dahlke made a $2,000 deal to buy Kewaunee's old equipment which included: Brew Kettle (47-Barrel), Mash Tub, Filtered Filter Washer, Beer Cooler, Bottle Filler (Hens & Kelley), Crooner Pasteurizing Tank, Crates, Racer Malt Mill, and Keg Ringer.

Kewaunee offered to sell Dahlke an ice machine but Harvey turned it down because it was too small for their needs. A $200 down payment was sent to Kewaunee on June 23, 1933.

Two weeks later while Harvey and his wife were visiting the Chicago's Worlds Fair, Kewaunee wrote back to Dahlke and indicated another buyer was willing to pay $3,500 cash for the same equipment and offered to turn down the cash offer is Harvey met their price. Harvey took a gamble and told Kewaunee to accept the cash offer and canceled the order.

The gamble paid off, on August 1, 1933, Kewaunee contacted Harvey again and replied that the $3,500 deal fell through and would reconsider the Dahlke offer if Harvey would make them a better offer. Kewaunee needed the money and so did Harvey. He refused the equipment and told Kewaunee to find another buyer. After two days of negotiating, Harvey offered the original $2,000 price again and Kewaunee accepted.

The equipment was supposed to be ready for the Dahlkes after by the 1st of October, but it wasn't delivered. Harvey contacted Kewaunee who said their new equipment wasn't installed and would not be ready until the end of October. Again, the equipment never arrived. Harvey continued to contact Kewaunee each week to find the status of the equipment until Kewaunee wrote back on November 30, 1933, saying " Due to the fact that the sale of bottle beer has dropped so much, we have been unable to keep up our payments on the new bottling equipment we brought from Geo, J. Meyer Mfg, Company, and are therefore compelled to use our old equipment which will consist of the Filler and crowner, filter machine and trays..."

Kewaunee offered to sell Dahlke the Brew Kettle, Mash Tub, Beer Cooler, Racking Machine, 2 Pasteurizing tubs for $1,800. Harvey refused the price and it was back to the negotiating table again. During the business deal, Harvey convinced Kewaunee to accept a $1,000 offer for the five items.

By March 1934, the brewing equipment was not delivered to the Dahlkes and Kewaunee would not release the equipment until Wayne Dahlke signed a title note. (Twice, Dahlke made two trips to Kewaunee for equipment). Harvey reacted by stop payment on a $300 check until equipment was delivered.

From June 1933 to March 1934 Finally after ten months and many letters going back and forth between both breweries accusing each of shorting each other, the brewing equipment was finally delivered on March 23, 1934, Dahlke received: Brew Kettle, Mash Tub, Crowner, 2 Pasteurizing Tank, Crates, Malt Mill and Keg Ringer, Foot Crowner. Final price: $1,800.

Harvey noticed the cooler was not delivered. Apparently, the cooler was never intended for sale and Kewaunee did not mention this until after the sale. Dahlke replied back indicating the cooler was in the purchase. Kewaunee remained to their no sale but offered it to Dahlke for $1,000. Dahlke refused to pay the extra $1,000 for cooler. After some discussion, Dahlke counter offered for the cooler at $300. Kewaunee refused and the beer cooler stayed at Kewaunee. Final payment for the equipment was completed by May 2, 1934. Melancholy, Kewaunee, itself, had some difficult times competing against Kingsbury in Manitowoc, Wisconsin and was forced into bankruptcy by 1942.

Harvey Dahlke was an exceptional businessman. He knew how to use the economical problems during the Great Depression to his advantage. He continued to negotiate discount prices on almost every piece of equipment during the brewery construction. The only company he could not get a discount was Dunck Tank Works of Milwaukee. The Dunck brothers in Milwaukee made excellent redwood aging tanks that Gustav Kuenzel would not accept any substitutions. On February 28, 1934, nine fermenting tanks and eight storage tanks were installed by Dunck .

Dahlke Brewery: Open For Business

Finally, from July 20, 1933 to March 30, 1934, over $46,000 was spent on the brewery project and the brewery was ready for operation. The brewery employed around 10 workers during its entire history. Gustav Kuenzel and the Dahlkes were going to use "Bavaria beer" as their brewery's brand name. Since 11 other breweries in the country was using the same name, at the last moment, they copyrighted "Dahlke's Better Beer" as their brand.

The brewery produced an average of 12,500 barrels of Dahlke's Better beer, Christmas brew and bock beers. during its first five years and was handled by distributors in Madison, Milwaukee, Green Bay, Stevens Point, and Neillsville. Tap beer was sold in half-barrels and "ponies". Selling price was $2 a case or $12 a half-barrel. A pony (1/8-barrel, or "keg") cost $1.75. By the glass? Five or ten cents at any bar!

The Dahlke Brewing Company had three delivery truck shipping Dahlke's Better Beer throughout the State. The Dahlkes either kegged or bottled their beers. Everything was done by hand. While most breweries after Repeal were using cap-sealed bottles, Harvey saved money by purchasing over 300 unwanted 1/2 -gallon bottles (with metal fasteners) from General Glass Corp. Lancaster Ohio.

Kuenzel used about 10 bushels of malted barley each day and sold brewers grain to local farmers for 75 cents a barrel for stock feed. The brew wort passed over cooling coils on its way to the fermenting room at the top level of the brewery. Seven to eight days later, it was piped to the cellar for a 4-week clarification and aging period in large Dunck redwood tanks.

The water from the deep artisan wells had a temporary hardness and a high alkalinity. After Repeal, 65 of the 80 breweries operating in Wisconsin had to use Burtonizing salts in water to reduce the water alkalinity.

Right after the refrigeration system was installed, the Dahlke didn't think the system was working properly. The brewery building had no insulation and the cooling system could not bring the temperature down enough. Kuenzel assured the Dahlkes, once the brewery had product in the room, the temperature control would work. to work. After the first batch of 47 barrels of Dahlke's Better Beer, the cooling system kicked in and brought the room down to 38° F.

Advertising

To compete with other breweries in the area, the Dahlkes advertised their beers throughout central Wisconsin. All beer brands sold in Wisconsin had to have some kind of advertising. In 1935, a Wisconsin law required every holder of retailer's license selling or offering for sale draught fermented malt beverages to be consumed on or off the premises must display a sign on, over or near each tap or faucet disclosing the brand of beer drawn from each tap or faucet and the name of the manufacturer of the beer on tap, visible to patrons for a distance of at least ten feet so that every patron may be informed of the brand of fermented malt beverage on tap. Violation deemed guilty of a misdemeanor and upon conviction was punished by a fine of not more than $15.

The Dahlke Brewing Company used many point-of-purchase displays where ever their beers were sold. The first brewery give-always were foam scrapers. The Dahlkes had Thos D. Murphy Company produce 250 beer scrapers in June 1934 at 47 cents each.

Forester Label Works manufactured 20,000 beer coasters in September 30, 1935. Tap knobs were first used by Dahlke in April 1936 as 100 Dahlke Better Beer tap knobs were ordered through Green Duck Company. Brockway Glass company made 250 mini Dahlke "steinie bottles" as salt and pepper shakers during summer of 1938.

Match books were used heavily by Dahlke from 1935 to 1939. All match books were designed and printed by Lion Match Company and were given away by over 25 different taverns in central Wisconsin.

The brewery had several neon signs produced for its major accounts, but only one indoor neon sign, saying "Dahlke's Better Beer" was made during its entire history and once hung in the Wisconsin Fishing Company in Green Bay, Wisconsin.

Outdoor advertising was used by the Dahlkes. Kemper-Thomas Company produced 100 20 x 42 all -weather "Dahlke" signs in October 1934. All of Dahlke's outdoor electric signs were either made by the Royal Neon Electric Signs Inc, in Milwaukee or General Neon Products in Beloit,

Dahlke Brewing Company had its troubles with outdoor advertising. Wisconsin. Royal Neon once shipped an outdoor Dahlke sign saying "Dehlke" in June 1937 to one of their accounts. Another was that all outdoor Dahlke signs made by General Neon Products had transformers interfered with radio transmissions. All signs eventually had to be taken down to add grounding.

Dahlke's advertisement was also enhanced by a German band, made up of a few members of the Westfield Village Band, who played at fairs and celebration throughout Marquette County.

Turning Point For Dahlke

By 1937 the Dahlke Brewing Company was producing over 12,000 barrels a year under Gustav Kuenzel's leadership. Beer was sold in all the surrounding communities, Madison, Milwaukee and Green Bay. Gustav Dahlke decided to manage his electric power plants and placed Harvey as General Manager of the brewery.

The Great Depression was taking its toll on the Dahlke's. Payments to the brewery were late on a regular basis from many distributors and accounts. A number of tavern owners would build up their brewery tab and sell off the their taverns and not pay the brewery. The Dahlke's spent many hours trying to locate the past owners. The biggest financial blow to the Dahlke brewery was when Kraus and Becker, Dahlke's largest distributor in Milwaukee, declared bankruptcy at the end of 1936, owing the Dahlke brewery nearly $6,000. Gustav Kuenzel wanted the brewery to survive and allowed the Dahlke's to hold his paychecks until the brewery could recover the losses caused by Kraus and Becker.

The brewery never recovered. On March 13, 1937, Gustav Kuenzel died of an apparent pneumonia. He was 67 years old. Since Kuenzel's brewing experience was responsible for building the brewery's reputation of a quality beer, his act would be a hard to follow. After Kuenzel's death, Irene and Walter Dahlke turned their shares over to Harvey who then became the brewery's General Manager.

While the brewery was still heavily in debt, the Dahlke's could not afford hiring an experienced brewmaster. Since Wayne Dahlke was the only person who worked as Kuenzel's assistant, Wayne became the next brewmaster. Unfortunately, Wayne did not have Kuenzel's experience and relied on the malting companies advice in making beer. The malting companies sold Wayne on purchasing cheaper brewing malt (mostly of rice and corn grits) to help the brewery recover its financial losses from the past year. Wayne even tried liquid hops extract in May 1939 from Hops-em (National Hops Laboratories) in Chicago but rejected it after the beer could not hold a foam head.

The Dahlke family was very close to the Kuenzel's family and continued on for many years. After Gustav Kuenzel's death, Gustav Dahlke was making monthly payments to Gustav Kuenzel's widow for her husband's back pay. It took him four years to pay off the debt.

The brewery began receiving complaints about their beer. Sales gradually declined. When changes where made in the beer recipe, sales dropped faster. By 1938, Dahlke's beer sales started to take a nose dive. The beer Dahlke was producing did not have the quality Kuenzel used to brew, in 1934, Dahlke's Better Beer had an alcohol/weight 4.23% and 5.42% by volume . The color was at 8.0° By July 1938, the same beer had an alcohol/weight level at 3.07% and 3.94% by volume. Color was below 5.7°.

Several Dahlke's distributors stopped selling Dahlke's Better Beer and discontinued their private labels brewed by Dahlke. Wisconsin Fishing Company in Green Bay, Wisconsin, was Dahlke's major distributor and had this account since early 1935. Wisconsin Fishing Company even had a private label called "Wisconsin Special" printed in 1937. The label and name was designed by Wisconsin Fishing Company and 200 cases were ordered. As the quality of Dahlke's Better Beer continued to drop, Wisconsin Fishing Company ordered less each month. The last order from Wisconsin Fishing Company was on February 7, 1938.

Harvey continued to find ways to keep his family brewery in business. When ever some brewery in Wisconsin had gone out of business, he was always on the phone trying to purchase whatever the Dahlkes needed from that brewery. Harvey was buying used bottles, wooden and steel kegs, a delivery truck and even tap knobs from defunct breweries.

Switching to Soda

With the loss of their Milwaukee market, Dahlke needed another distributor in Milwaukee to handle their beer. They found that distributor in the John Graf Company. Graf was a major manufacturer of soft drinks in Milwaukee and their products were distributed all around Wisconsin. Graf contacted Dahlke, and asked the company to bottle soda for them and distribute the soda in Stevens Point The arrangement worked from late 1937 through 1941.

Since beginning of 1938, Harvey Dahlke started to look for other business opportunities to bet the brewery out of debt. It was decided that bottling soft drinks under their own name might help the brewery. Dahlke began to bottle several flavors of soda by May, 1938. Soft drink room plans were made during August 1939 and Harvey Dahlke traveled to Atlanta to meet with Red Rock Cola in 1940. The soft drink room was built and Dahlke began to bottle Red Rock sometime after May, 1941. Later Dahlke bottled Nesbitt's Orange and Squirt soda. Soft drink sales began to pick up and the brewery's financial picture slowly improved.

Last Attempt To Improve Beer Sales

Following Prohibition, the Dahlke Brewing Company had been one of more than 80 small town breweries in Wisconsin but, like dozens of others, it lost ground after World War II because of labor problems, increased taxes, and competition with established breweries.

In 1940, Harvey hired a retired brewmaster, R. Ernst Eggert, from the defunct Kenosha Brewing Company to become Dahlke's new brewmaster. R. Eggert lived in Appleton, Wisconsin but stayed at the hotel in Westfield five days out of the week. The quality of Dahlke's beer and private label beers improved but never reached Gustav Kuenzel's popularity.

In early 1943, his ten brewery workers were threaten to unionize and seek higher wages. Finally, during the end March, 1943, Harvey decided to phase out the brewery operations and produce only soft drinks. The brewery finished payroll as Dahlke Brewing Company during week of August 7, 1943.

Harvey converted the entire brewery into a soft drink bottling plant and sold most of the brewing equipment. Many of the Dunck redwood aging tanks were sold to the Bond Pickle Company in Green Bay. Brewing in Lawrence ended and Dahlke Better Beer gone at the end of 1943 and the Dahlke Brewing Company became Red Rock Bottling Company in December 1943.

Over the years a number of local people were employed at the Dahlke plant, but one man stands out for his loyalty from the time the brewery opened in 1934 until well into the Squirt-Nesbitt days. Jim Curtiss worked, at one time or another, in almost every phase of the brewing and bottling works.

"Jim would be at my door and ready to go to work before I had finished breakfast in the morning, " Harvey Dahlke said, "and if he thought we needed a greater variety on the next day's orders, he would suggest we go back and bottle pop at night."

Harvey Dahlke received many awards for excellence from the parent soft drink companies, and stayed in business until 1966.

Dahlke Brewery Site Today

Years of vacancy, stress of the elements, and unkind vandals have left the old Dahlke brewing Company building in Lawrence in a sorry state, but memorabilia hunters, who are able to find bottles, signs, kegs, or labels at today's flea markets and auctions.



This article appeared in the American Breweriana Journal, Issue 79, March-April 1996 by Otto Tiegs & Bob Pirie


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