Grain Belt

future to be known shortly

Schell's makes bid to buy label

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- The fate of the label, recipe and assets of Grain Belt Premium beer should [DEMO]wn in the next few days.

August Schell Brewing Co. of New Ulm recently acknowledged that it submitted a bid to acquire the Grain Belt Premium label, recipe and assets from the bankrupt Minnesota Brewing Co.

A private firm liquidating the assets of Minnesota Brewing is reviewing the bids and will decide who, if anyone, gets Grain Belt Premium -- Minnesota Brewing's best-known label -- by Monday.

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

Schell President Ted Marti has good reason to be interested in Grain Belt. The acquisition would double brewery production because Grain Belt Premium would be produced in New Ulm, Marti said.

Grain Belt Premium would also add an established distribution route and create about 10 more jobs at the Schell plant that currently employs 32.

"We're just waiting like everybody else," [DEMO]said.

Grain Belt Premium beer is old hat at Schell's, Minnesota's oldest family-owned brewery. All Grain Belt Premium beer that comes in returnable bottles was produced at Minnesota Brewing in St. Paul and shipped to Schell's where it was poured into bottles.

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

Marti said he would not change the taste of Grain Belt Premium.

"It did well in the past and has a strong following," Marti said.

Schell Brewing Co. makes 14 of its own beers and contract produces for other beer companies.

Minnesota Brewing also produced Golden Pilsner, Pig's Eye Pilsner, Yellow Belly and Brewer's Cave beers before [DEMO]sed.