August Schell Brewing Company
A family-owned Minnesota brewery founded in 1860 and known for German-inspired beers and the Grain Belt brand.
Last updated August 22, 2026
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Overview
August Schell Brewing Company is a privately held brewery in New Ulm, Minnesota, founded in 1860 by German immigrant August Schell and Jacob Bernhardt. The company developed alongside New Ulm’s German-American community and has remained under continuous family ownership since Schell bought out Bernhardt in 1866. It is generally described as the second-oldest family-owned brewery in the United States, after D. G. Yuengling & Son, and became Minnesota’s oldest and largest brewery by acquiring the recipe and branding rights to Grain Belt beer in 2002. The brewery began at a site on the Cottonwood River, approximately two miles from central New Ulm. Its location helped it survive the destruction and fires affecting much of the city during the Dakota War of 1862. August Schell’s background as a machinist informed the early development of the operation, while his son Otto later brought formal German brewing knowledge and modernization, including refrigeration. After August Schell’s death in 1891, ownership and management passed through his wife Theresa, their son Otto, and the Marti branch of the family through August’s daughter Emma and her husband George Marti. Like many American breweries, Schell’s faced a severe disruption during Prohibition. From 1919 to 1933, the company supplemented or replaced alcoholic beer with near-beer, soft drinks, and candy. The business survived the period and returned to brewing after repeal. In the postwar decades, the American beer industry became increasingly consolidated, placing pressure on small regional producers. Under Warren Marti, Schell’s preserved its operation during difficult years, broadened its portfolio with products such as Export Beer, Light Beer, and 1919 Root Beer, and continued as an independent family brewery. Ted Marti assumed operational leadership in the 1980s and expanded the range of beers produced at New Ulm. Schell’s Pilsener won a gold medal at the Great American Beer Festival in 1988, and the brewery experimented with numerous styles during the 1990s. The 2002 acquisition of Grain Belt rights was a major strategic turning point, bringing a historically important Minnesota beer brand into the Schell’s portfolio and enabling production at the New Ulm facility. Schell’s subsequently developed additional Grain Belt variants, including Nordeast, Lock & Dam, BLU, and Southwest Cerveza. The company has also pursued specialty and mixed-fermentation brewing. Jace Marti, a member of the next generation, became brewmaster in 2010 and led the Noble Star series of sour Berliner Weisse beers. Schell’s opened the Starkeller facility in New Ulm as a production site and taproom for that line. Reference material indicates that Starkeller was no longer being used for mixed-fermentation production by 2024 and that Jace Marti had left the brewery to pursue distilling. Schell’s continues to balance traditional German-influenced beers, regional Grain Belt products, seasonal releases, and newer styles such as IPA, Kölsch, and cream ale. It also maintains a strong connection to local cultural events, including Bock Fest and Oktoberfest.
History
August Schell emigrated from the Grand Duchy of Baden to the United States in 1848 and initially worked as a machinist in Cincinnati. He later moved to New Ulm, Minnesota, with members of the Turner Society and established a mill. In 1860 he and Jacob Bernhardt founded a brewery on the Cottonwood River to serve the area’s growing German immigrant population. The brewery’s location outside central New Ulm helped it escape the destruction that affected much of the city during the Dakota War of 1862. Schell acquired Bernhardt’s share in 1866, establishing the uninterrupted family ownership associated with the company today. After August Schell died in 1891, his widow Theresa became the owner and their son Otto managed the brewery. Otto had studied brewing in Germany and modernized the operation, including the installation of refrigeration. Both Otto and Theresa died in 1911, after which George Marti, the husband of Schell’s daughter Emma, assumed management. The Marti family’s involvement continued through George’s son Alfred Marti, who became president and manager after his father’s death in 1934. Prohibition was a major challenge. Following the adoption of the Eighteenth Amendment and the implementation of national Prohibition in 1919, Schell’s produced near-beer, soft drinks, and candy in an effort to remain in business. The repeal of Prohibition in 1933 restored the legal market for alcoholic beer, although George Marti died soon afterward. Alfred Marti led the brewery until his retirement in 1969, when his son Warren Marti took over. The postwar brewing industry was marked by consolidation and intense competition from larger producers. Schell’s experienced financial and operational pressure and reportedly preserved the brewery by selling lumber from a large black walnut tree on its property. Under Warren Marti, the company adapted its range to changing consumer preferences, introducing Export Beer, Light Beer, and 1919 Root Beer. Ted Marti took over operations in 1984 and became president in 1985. His brewing education at the Siebels Institute of Brewing supported an expansion into a wider range of styles. Schell’s Pilsener won a gold medal at the Great American Beer Festival in 1988, and the brewery produced dozens of different beers during the 1990s. The most significant modern expansion came in 2002, when Schell’s acquired the recipe and branding rights for Grain Belt Beer. Production moved to New Ulm, making Schell’s the oldest and largest brewery in Minnesota according to the cited reference material. The company developed Grain Belt Nordeast in 2010, Grain Belt Lock & Dam in 2016, Grain Belt BLU in 2018, and Grain Belt Southwest Cerveza in 2019. Lock & Dam was later retired. Schell’s also expanded into specialty brewing through the Noble Star series, a group of sour Berliner Weisse beers led by brewmaster Jace Marti, who joined the brewing leadership in 2010. The company opened Starkeller in New Ulm as a dedicated specialty facility and taproom. By 2024, the facility was no longer being used to produce mixed-fermentation beers, and Jace Marti had departed to pursue distilling. The wider brewery has continued to revise its portfolio, retiring some long-running products while adding IPA, Kölsch, cream ale, hard seltzer, and lower-calorie offerings. Its annual Bock Fest and Oktoberfest celebrations reinforce the company’s German-American and regional identity.
- 2019
Grain Belt Southwest Cerveza launched
[1]The brewery expanded its flagship regional brand with Southwest Cerveza.
- 2018
Grain Belt BLU launched
[1]Schell’s released Grain Belt BLU after the product had appeared at the Minnesota State Fair.
- 2016
Grain Belt Lock & Dam launched
[1]Schell’s added Lock & Dam to the Grain Belt range; the beer was subsequently retired.
- 2010
150th anniversary and Grain Belt Nordeast
[1]The brewery celebrated its sesquicentennial and introduced Grain Belt Nordeast.
- 2002
Grain Belt rights acquired
[1]Schell’s acquired the recipe and branding rights to Grain Belt and moved production to New Ulm.
- 1988
Pilsener wins national beer competition gold
[1]Schell’s Pilsener received a gold medal at the Great American Beer Festival.
- 1933
Post-Prohibition brewing resumes
[1]The repeal of Prohibition restored the legal market for the company’s alcoholic beer products.
- 1919
Prohibition-era diversification
[1]The brewery shifted to near-beer, soft drinks, and candy during national Prohibition.
- 1891
Ownership passes to Theresa Schell
[1]After August Schell’s death, his wife Theresa became owner and their son Otto took over management.
- 1866
Schell becomes sole owner
[1]August Schell bought out Jacob Bernhardt, beginning the company’s continuous family ownership.
Products and positioning
Independent, family-owned regional brewery combining German brewing traditions, Minnesota heritage, legacy brands, and experimental specialty beers.
German-style and regional beer · 1860
Schell's beer
The core Schell’s portfolio reflects the brewery’s German-American heritage and includes traditional lagers, seasonal beers, and modern styles. The company has periodically adjusted the range, retiring some established products while adding IPA, Kölsch, and cream ale. The portfolio has also included Export Beer, Light Beer, Pilsener, and other historical or seasonal releases.
Regional lager brand · 2002
Grain Belt
Grain Belt is a historic Minnesota beer brand whose recipe and branding rights were acquired by Schell’s in 2002. Production was brought to the New Ulm brewery, making Grain Belt a central part of Schell’s modern business. The broader family has included the flagship beer and variants such as Nordeast, BLU, and Southwest Cerveza.
Sour Berliner Weisse · 2010
Noble Star
Noble Star is Schell’s specialty series of sour Berliner Weisse beers. The line was associated with brewmaster Jace Marti and was produced through the Starkeller project, which combined dedicated mixed-fermentation brewing with a taproom in New Ulm. Reference material indicates that Starkeller was no longer producing mixed-fermentation beers by 2024.
Non-alcoholic soft drink
1919 Root Beer
1919 Root Beer was introduced during the Warren Marti era and was named for 1919, the year national Prohibition began. It represents Schell’s historical diversification beyond alcoholic beer and its response to changing consumer and regulatory conditions.
Hard seltzer · 2020
Grain Belt N'icebreakers
Grain Belt N’icebreakers was described in reference material as a planned hard-seltzer line intended to extend the Grain Belt name into a fast-growing adjacent category.
Marketing campaigns
- 2010150th Anniversary Festival
New Ulm, Minnesota
Schell’s marked 150 years of operation with a two-day festival in September 2010.
Outcome. The festival publicly commemorated the brewery’s longevity and family ownership.
- Bock Fest
New Ulm, Minnesota
Schell’s annual Bock Fest connects the brewery with traditional German seasonal celebrations and the local New Ulm community.
Outcome. The event remains part of the brewery’s recurring cultural and brand programming.
- Oktoberfest
New Ulm, Minnesota
The brewery’s annual Oktoberfest activities draw on New Ulm’s German heritage and position Schell’s as a custodian of regional brewing traditions.
Outcome. The celebration continues as an annual brewery-linked event.
Brand decisions
2020
Broaden the portfolio beyond traditional beerStrategyBackground
Changing beverage preferences encouraged Schell’s to consider products outside its established lager range.
Action taken
Reference material describes expected releases of Grain Belt N’icebreakers hard seltzers and Grain Belt Elite, a lower-calorie beer.
Aftermath
The cited material does not establish the long-term commercial status of these products.
2010
Develop the Noble Star specialty rangeProduct launchBackground
The brewery pursued specialty and mixed-fermentation brewing alongside its traditional lager portfolio.
Action taken
Brewmaster Jace Marti led production of Noble Star sour Berliner Weisse beers.
Aftermath
Schell’s opened the Starkeller facility and taproom for the specialty line; the facility later ceased mixed-fermentation production according to reference material.
2002
Acquire Grain Belt recipe and branding rightsM&ABackground
Schell’s sought to expand its regional reach and strengthen its position in Minnesota’s beer market through a historic local brand.
Action taken
The brewery acquired the recipe and branding rights to Grain Belt and moved production to New Ulm.
Aftermath
Grain Belt became a major part of Schell’s portfolio, with several subsequent variants introduced.
Sources2 sources
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