Built a beer empire that rivaled Budweiser, trading the #1 spot back and forth for decades. Milwaukee was the Silicon Valley of beer, and Schlitz was at the center — selling over 24 million barrels annually and running the second-largest brewery in the world.
What Changed
New leadership chased profit over quality, cutting costs everywhere. They sped up brewing from 30 days to 15, replaced barley with corn syrup, and added chemicals that created white flakes and 'boogers' in bottles. A 10 million bottle recall in 1976 shattered consumer trust. Meanwhile, marketing VP Bob Martin ran illegal slush funds, bribing bar owners and greasing palms — leading to 747 DOJ corruption counts.
Where it Landed
Sold for $500M in 1982 after losing 90% of brand value in one decade. Today sells less than 0.5% of its 1970s peak volume. The brand that made Milwaukee famous became a bargain bin punchline.
The Principles
1.
Quality cuts are a time bomb. Schlitz saved pennies per batch but destroyed decades of trust when booger beer hit shelves.
2.
Growth tactics built on bribes collapse when scrutinized. Schlitz's market share gains evaporated when 747 DOJ corruption counts exposed the slush fund.
3.
Market shifts punish the distracted. While Schlitz chased margins, Miller launched Miller Light and redefined the category — leaving Schlitz flatfooted.
Builder's Takeaway
3 silent killers that wreck legacy brands:
•
Salami-slicing quality destroys trust faster than it saves cost
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Illegal growth tactics create fragile market share that vanishes under scrutiny
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Missing category shifts while optimizing the old game is fatal
