What fire, prohibition, war, and competition couldn't do was about to happen all in the name of progress. In 1960, Minnesota plotted a path for the new Interstate 35 which took it through downtown Duluth. The state informed Robert Ostern that the new freeway was slated to run through his brewery. and it would be impossible to bypass the plant. The property south of Helm Street would be taken, including the company's malt house, brew house and generating plant.

Robert Ostern left a meeting at the Duluth City Hall on June 2, 1962, knowing the brewery's future was uncertain. Most of the 100 stockholders of Duluth Brewing and Malting Company did not live in Duluth, making a money settlement easier than building a new brewery. As more and more regional breweries were closing throughout the country, Ostern and the stockholders had serious doubts about their own brewery's future. A tentative proposal was formed for constructing a new brewery west of the bottling plant. The Duluth Brewing and Malting Company owned the adjacent property and there was ample room for expansion. For whatever reason, those plans never came to reality. Stockholders probably realized that the age of the small brewery was ending and the nationals would continue to erode Duluth Brewing and Malting Company's market share. Hence, the stockholders decided to accept the state's offer.

The state had appraised the brewery properties at below $250,000. Ostern informed state official that the City Assessor valued the properties at $597,291 and property taxes were being paid or that amount. For the next four years, Minnesota state officials would call Ostern regularly and ask "How are you doing? Are you still making money?" The state knew they could buy the property much cheaper if the brewery was losing money. Ostern kept the brewery profitable during those years.
On April 29, 1966, a condemnation board awarded more than $700,000 to the Duluth Brewing and Malting Company for its property. Heileman had purchased the malt house on July 1, 1963, and President Roy E. Krumm of G. Heileman Brewing Co. denied that he knew the malt house was in the path of the freeway. The property was to be vacated by July 1, 1966. Freeway construction would begin the following month.

During those final days before demolition, Robert Ostern said, "We couldn't face up to it. We didn't want to see anyone kicked out of their job. Thinking about the brewery being torn down was the worst thing that could happen."

The Karlsbrau and Royal 58 beers were be produced by G. Heileman in LaCrosse, Wisconsin. Brewery buildings which were not razed would be Heileman distribution warehouses. Heileman had the rights to produce both Royal 58 and Katlsbrau. The brands would be gone within six months. The Cold Spring Brewing Company resurrected the brands briefly during the late I970s and early 80s. What's left of the old Duluth Brewing and Malting Company today? The bottling plant north of Helm Street is all that remains.

After the brewery closed, Ostern got offers fror both Oshkosh Brewing Company in Oshkosh Wisconsin, and the Rahr brewery in Green Bay. Rahr was having financial problems and hoped Ostern could turn the company around. Ostern rejected the offer and the Rahr Brewing Company closed its doors a few months later. He eventually worked for Hamm's in 1967 and 1968, and finally moved to August Schell in New Ulm, Minnesotta from 1969 to 1972. Ostern helped Schell stay in business during the time when national breweries forced most regional breweries out of business.

While he was with August Schell Brewing Company, he was introduced at a brewmaster's convention as the only German brewer with a Norwegian brewmaster, a comment that brought chuckles from the brewers attending the meeting. Robert Ostern produced a qualiry product at the Schell Brewery and gets credit for adding to the longevity of that small brewery. His products eventually put John Hauenstein in New Ulm out of business in 1969. At another brcwmaster's meeting, a wife of a retired brewmaster who used to work for Hauenstein called him, "The man who put my husband out of work."

Afrer 38 years in the brewing industry, Robert Ostern finally retired in 1972. He relocated back to Duluth, the ciry where he grew up. Today, all that remains of the Duluth Brewing & Malting Company are the main office, bottle house and the warehouse. Ironically, two different beer distributors occupy the premises as beer continues to sell in the city of Duluth.

Pete Clure, ABA #5159, and Doug Davis, ABA #3835 are collectors of Duluth and Superior breweriana. Both Pete and Doug have researched not only the Duluth Brewing & Malting Company but other breweries in the area, including the Northern Brewing Company of Superior, Wisconsin. You can read more about the Northern Brewing Company right here.

This story would not have been possible without the cooperation and help of Robert Ostern, John Pickar, James Mamry, Steve Korkolo, Terry Post, and Russell Gravelle.