A Storied Legacy of Fine Beers

A Legend is Born

It all started in 1860 when German immigrant August Schell settled in New Ulm, Minnesota, and built a brewery that blended Old World traditions with frontier ingenuity. Using hand-crafted methods and local ingredients, he laid the foundation for what would become one of America’s oldest family-owned breweries. The 1800s marked the start of Schell’s enduring legacy—rooted in craftsmanship, community, and a deep love of great beer.

Otto Makes Beer Colder

Brewing was hard work, especially when you take the fermenting process into account. The Cottonwood River was used not only for transportation, but also for refrigeration. Ice was harvested from the Cottonwood and hauled to the underground caverns deep beneath the brewery. The beer aged in there until the ice started to melt in early summer. That was, until refrigeration. Life got a lot easier in 1900, and Schell's was finally able to brew beer year-round.

Brewery Becomes Incorporated

August Schell’s Beer Brewery became known as the August Schell Brewing Company. Even though Otto had been managing the operations for many years, it wasn’t until 1902 when The Board of Directors officially declared Otto Schell as President. Theresa Schell retained ownership of the brewery at this time, but was named Vice-President, and George Marti as Secretary and Treasurer.

George Marti Takes Over After Tragic Loss

On January 14th, Otto died suddenly at the age of 49. The town was stunned as Otto and his family were very active members in the community. Ailing and grief stricken, his mother, Theresa, passes away just four months later. After Otto’s death, George Marti was appointed President, and the operation of the brewery has remained in the Marti name ever since.

Alfred "Al" Becomes a Bookkeeper

George and Emma’s son, Al, returned to the brewery in 1913 to become a bookkeeper. After about a four-year stint at the brewery, he decided to move his family to Scobey, Montana. In a partnership with his brother, Edward, they operated a grain farm and became cattle buyers.

Prohibition Dried up the Country

With the implementation of the 18th Amendment came great challenges for the brewery. Beer production was illegal, which made it quite difficult to sustain a business predicated on brewing alcoholic refreshments. Prohibition banished happiness in all the land and dried up the country, or so that’s what they made it seem.

Near Beer Saved the Brewery

It’s challenging keeping a brewery up and running when you can’t legally produce beer. The brewery began producing near beer, soft drinks, and candy to keep the equipment running in hopes that one day they could transition back to beer. Near beer typically contained less than 0.5% alcohol and was made purely to replicate the taste of the beer everyone craved so much.

Well Kept Secrets Save Their Sanity

Near beer didn’t quite cut it for the thirsty Germans at the brewery, or anywhere else for that matter. They did what they could to keep their sanity which lead to the introduction of speakeasies. These secret bars began popping up all over the country as a way for people to sell and consume products illegally.

Al Returns to the Brewery

After being in Montana for a few years, Al decided to pack up and head home. The brewery was struggling amidst Prohibition, so he returned to become a salesmen and help his father with the family business. Brewery doors were closing left and right, but the perseverance of the family kept them going.

Prohibition is Repealed and Beer Drinkers Rejoice

The 21st Amendment was ratified on December 5, 1933. It effectively repealed prohibition and restored happiness in the country. At the beginning of Prohibition, there were 1900 breweries. By the end, there was only 600 left, and Schell’s was one that weathered the storm. Because the machines had remained in operation through the years, it made the transition back to brewing beer that much easier.

George Passes Away and Leaves Emma at the Helm

On March 22, George passed away at age 77 leaving the brewery to Emma. Their oldest son, Al, became the Vice President and manager of day-to-day brewery operations. Their youngest son, Edward, became a Brewmaster.

Al Becomes President After Emma's Death

After Emma’s death on May 2, Al was appointed President. Al was known as the fun-loving sort who enjoyed music almost as much as the beer he brewed - a hobby that was passed on from his father, George.

The Schell's Hobo Band is Born

Al’s passion for music became a hobby in 1948. He gathered some musicians together and began sponsoring the crew’s music. They were fondly named the Schell’s Hobo Band. Best known for their circus-style music, as well as their antics, the band became famous through the years and still entertain crowds, young and old, to this day.

Al "Retires" From the Brewery

Al officially gave up his role as President, but he far from retired. He remained active at the brewery up until his death in 1977. His son, Warren, assumed the role of the brewery President after years of working in miscellaneous positions. He was considered the “Jack of All Trades” because he started as a gardener, was a bottlehouse supervisor, salesmen, bookkeeper, and brewmaster. Before returning to the brewery, he was also a World War II Veteran and teacher.

Warren Brings About Change to the Brewery

The beer industry was continuing to evolve and Warren brought about some changes that are still present at the brewery today. Warren introduced Schell’s Export, Schell’s Light, and began contract brewing 1919 Root Beer for Arneson Distributing. This was also the era where collecting beer cans became prominent.

Warren Takes an Interest in Hydroponic Gardening

A new venture began at the brewery in 1974 in the form of hydroponic gardening. Warren invested heavily and built a large operation on top of the hillside to grow tomatoes. Ted, one of Warren’s sons, returned to the brewery to manage the gardens. Some of the brewery workers would come in early to tend to the tomatoes before their shift in the office.

Times Were Tough

Many new breweries had started up after Prohibition and brewery numbers were climbing, until the 1970s got ahold of them. Many small breweries met their fate and boarded up their doors. Mega breweries were dominating and the little guys fell off the map. Warren’s persistence kept the brewery thriving.

A Black Walnut Tree Makes an Unlikely Hero

The struggles continued for the brewery and the doors were all but ready to close. As fate would have it, the very grounds where August chose to lay his first brick was the saving grace the brewery needed. Schell’s cut down a massive black walnut tree that was on the brewery grounds and sold the lumber as a last ditch effort to keep the doors open. After that, things slowly started getting better.

The Brewery Introduces Craft Beer

After studying under several breweries in Germany, Ted led the charge to bring craft beer to Minnesota. In 1984, Schell’s made the first wheat beer after Prohibition, a recipe which he transformed into Schell's Hefeweizen. Several different craft brews were introduced at this time.

Warren Retires and Ted Becomes President

Ted had spent most of his upbringing around the brewery, and he had extensive studies including studying under several breweries in Germany. His entrepreneurial leadership and skills as a brewmaster, with the introduction of craft beers, was the reason a brewery so small was thriving amongst a “mega-brewery” dominated market.

Schell's Releases a Line of Specialty Beers

The crafts that were brewed in the 80s were so well received that the brewery wanted to create an entire line of specialty beers, and it didn’t take long for many of them to become award winners. Among them were the Alt and Pale Ale. Ted’s reputation in the industry grew and others became interested in contracting their brews through Schell’s. Of the 38 brews being produced at Schell’s, 16 of them were contracted and sold under different names.

A State-of-the-Art Brewhouse was Built

Business was going well and people were enjoying the German craft lagers, but these were no longer the days of 200 annual barrels of production. A new state-of-the-art brewhouse was built into the hillside in an effort to increase capacity and efficiency. Four stainless steel kettles were imported from Germany as an ode to the strong German tradition.

New Millennium, New Ventures

As the millennium turned, Schell’s stood proudly at the forefront of Minnesota’s craft beer movement. Having pioneered the state’s first craft brews—beginning with a few in the 1980s and gaining momentum through the ’90s—Schell’s helped define a new generation of German-inspired craft lagers. By 2002, the brewery made its largest investment yet with the purchase of Grain Belt Beer, marking the start of a bold era of growth and innovation. After more than 140 years, Schell’s was thriving—combining heritage, creativity, and craftsmanship to carry its legendary story forward, one bottle at a time.