July 3, 2002

Schell's eyes Grain Belt label

Production could double at Schell's if Grain Belt

is acquired

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- Grain Belt Premium beer, "the beer from perfect brewing water" may be saved from extinction by August Schell Brewing Co. of New Ulm or Summit Brewing of St. Paul.

Last week, Minnesota Brewing Co. -- which produced Grain Belt Premium Lager, Golden Pilsner, Pig's Eye Pilsner, Yellow Belly and Brewer's Cave beers -- closed down in St. Paul.

Minnesota Brewing may be sold entirely or liquidated, which would enable the Grain Belt label to be sold to another brewery.

Grain Belt beer is old hat at Schell's, Minnesota's oldest family-owned brewery.

All Grain Belt Premium beer in returnable bottles was made by Minnesota Brewing in St. Paul and shipped to New Ulm to be bottled at Schell's.

Ted Marti, Schell's President, has good reason to be interested in Grain Belt.

Adding the Grain Belt Premium label could double his brewery's production, provide an established distribution route and add about 10 employees to the Schell plant that currently employs 32. No building expansion is planned, Marti said.

Grain Belt Premium beer won national awards in 1994. It reported sizeable sales gains as late as 1996.

"Grain Belt did well in the past," Marti said. "It has a strong following. Rumor has it there is lots of competition for the label."

Marti said he wouldn't change the taste of Grain Belt.

Grain Belt's fate should be known soon. Minnesota Brewing's asset disbursing deadline is Aug. 15, Marti said.