Milwaukee became synonymous with Germans and beer beginning in the 1850s. The Germans had long enjoyed beer and set up breweries when they arrived in Milwaukee. By 1856, there were more than two dozen breweries in Milwaukee, most of them German-owned and -operated. Besides making beer for the rest of the nation, Milwaukeeans enjoyed consuming the various beers produced in the city's breweries. As early as 1843, pioneer historian James Buck recorded 138 taverns in Milwaukee, an average of one per forty residents. Beer halls and taverns are abundant in the city to this day although only one of the major breweries—Miller—remains in Milwaukee.[40]
Milwaukee's founding fathers had a vision for the city. They knew it was perfectly situated as a port city, a center for collecting and distributing produce. Many of the new immigrants who were pouring into the new state of Wisconsin during the middle of the 19th century were wheat farmers. By 1860, Wisconsin was the second ranked wheat-growing state in the country and Milwaukee shipped more wheat than any place in the world. Railroads were needed to transport all this grain from the wheat fields of Wisconsin to Milwaukee's harbor. Improvements in railways at the time made this possible.
There was intense competition for markets with Chicago, and to a lesser degree, with Racine and Kenosha. Eventually Chicago won out. Due to its superior position on major railroad lines connecting east and west, Chicago had a distinct advantage over Milwaukee. The wheat market though, guaranteed Milwaukee's place as the commercial capital of Wisconsin.[40]
Milwaukee was once the home to four of the world's largest breweries (Schlitz, Blatz, Pabst, and Miller), and was the number one beer producing city in the world for many years. Despite the decline in its position as the world's leading beer producer after the loss of two of those breweries, its one remaining major brewery, Miller Brewing Company remains a key employer by employing over 2,200 of the city's workers.[41] Because of Miller's solid position as the second-largest
beer-maker in the U.S., the city remains known as a beer town despite now only representing a fraction of its economy.
The historic Milwaukee Brewery, located in "Miller Valley" at 4000 West State Street, is the oldest still-functioning major brewery in the United States. In July 2008, it was announced that Coors beer would be added to the list of beers brewed in Miller Valley. This created additional brewery jobs in Milwaukee, as its world headquarters moved 100 miles (160 km) south from Milwaukee to Chicago.
Besides Miller and the heavily-automated Leinenkugel's brewery in the old Blatz 10th Street plant, the only other currently operating stand-alone breweries in Milwaukee are Milwaukee Brewing Company, a microbrewery in Walker's Point neighborhood, and Lakefront Brewery, a microbrewery located in Brewers Hill. The suburb of Glendale is home to Sprecher Brewery, another locally popular microbrew. Various brewpubs can also be found throughout the Milwaukee area, including Milwaukee Ale House and Water Street Brewery.
Three beer brewers with Wisconsin operations made the 2009 list of the 50 largest beermakers in the United States, based on beer sales volume. Making the latest big-breweries list from Wisconsin is MillerCoors at No. 2. MillerCoors is a joint venture formed last year by Milwaukee-based Miller Brewing Co. and Golden, Colorado-based Molson Coors Brewing Company. The Minhas Craft Brewery in Monroe, Wisconsin which brews Huber, Rhinelander and Mountain Crest brands, ranked No. 14 and New Glarus Brewing Company., New Glarus, Wisconsin whose brands include Spotted Cow, Fat Squirrel and Uff-da, ranked No. 32.[42]