Paul Kalmanovitz
Encyclopedia
Paul Kalmanovitz was a millionaire brewing and real estate magnate
best known for owning all or part of several national breweries and their products, including Falstaff Brewing Company and Pabst Brewing Company
. Most of the Kalmanovitz Estate was left to create a charitable foundation for hospitals and universities.
. He later emigrated to Egypt
at the end of the World War I
and worked for Sir Edmund Henry Hynman Allenby
. Kalmanowitz arrived in the United States
in the 1926 by jumping a merchant marine ship and jumped from job to job, working for several notable people such as Franklin D. Roosevelt
, William Randolph Hearst
, and Louis B. Mayer
(MGM).
In 1950 Kalmanovitz acquired the Maier Brewing Company in Los Angeles
, California
and officially entered the brewing industry. Maier Brewing, makers of Brew 102, struggled for a number of years, and in 1958 faced a strong push to be bought out by the Falstaff Brewing Company. Kalmanovitz refused to be bought out, even after threatened by Falstaff to either sell or Falstaff would bury the Maier Brewery. Within a few years Kalmanovitz turned the Maier Brewery around and began making a profit. Along with the brewery and numerous other investments, Kalmanovitz's net worth began to swell. In 1970 Kalmanovitz purchased Lucky Lager
and merged it with his Maier Brewing Company to form the General Brewing Company with S&P Corporation as its parent.
By 1974 Falstaff had fallen on hard times and was in need of cash. Falstaff's purchase of the Ballantine brands in 1972 had proven to be a major mistake and stretched the company a little too thin. Falstaff sold Kalmanovitz its San Francisco brewery. The cash couldn't save Falstaff, and in 1975 the company was once again in trouble. Kalmanovitz offered to inject $20 million into Falstaff for 100,000 shares of preferred stock. On 28 April 1975, Paul Kalmanovitz gained the controlling interest in the Falstaff Brewing Company. Kalmanovitz more than quadrupled his brewery interests and became a major force on the American beer market.
With the purchase of Falstaff, Kalmanovitz moved the Falstaff headquarters from St Louis
, Missouri
to San Francisco to combine it with General Brewing Company's headquarters. By June, more than 175 of Falstaff's corporate employees were laid off. The United States Securities and Exchange Commission
(SEC) opened an investigation of the Falstaff purchase, questioning if shareholders were given proper notification of the sale. The SEC determined that the purchase was conducted improperly. Falstaff stock was barred from trading and removed from the New York Stock Exchange
. Falstaff workers unhappy with the new direction of the company staged a company lockout
, which Kalmanovitz and General Brewing called a strike.
Eventually things settled down with Falstaff and production resumed. Kalmanovitz's plans to make a profit off Falstaff were not to turn the company around and reestablish its brand strength in the market, but rather to cut costs drastically throughout. The biggest change was the advertising budget where Kalmanovitz eliminated all types of marketing. Falstaff's market share continued to slide, resulting in plants closing and employees out of work. Falstaff was profitable for the S&P Corporation, but at a cost to works and the communities around the breweries. Kalmanovitz acquired an ailing brewery, fired the corporate personnel, reduced budgets, sold off equipment, stopped plant maintenance, and eliminated product quality control. Kalmanovitz established a standard with Falstaff that was repeated as he purchased Stroh's
, National Bohemian, Olympia
, Pearl
, and Pabst
.
Breweries were not Kalmanovitz's only interests, he was also involved in helping Guide Dogs for the Blind
and several other charitable organizations. Upon his death, Kalmanovitz's net worth was said to be in excess of $250 million. A sizable portion of his wealth was donated to numerous California hospitals. In addition, his estate also donated the money for the Paul and Lydia Kalmanovitz Library at the University of California, San Francisco
, Kalmanovitz Hall at the University of San Francisco
, and the Paul and Lydia Kalmanovitz Appellate Courtroom at the University of California, Davis School of Law (King Hall).
Magnate
Magnate, from the Late Latin magnas, a great man, itself from Latin magnus 'great', designates a noble or other man in a high social position, by birth, wealth or other qualities...
best known for owning all or part of several national breweries and their products, including Falstaff Brewing Company and Pabst Brewing Company
Pabst Brewing Company
Pabst Brewing Company is an American company that dates its origins to a brewing company founded in 1844 by Jacob Best and by 1889 named after Frederick Pabst. It is currently the holding company contracting for the brewing of over two dozen brands of beer and malt liquor from defunct companies...
. Most of the Kalmanovitz Estate was left to create a charitable foundation for hospitals and universities.
Biography
Kalmanovitz was born in Łódź, PolandPoland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
. He later emigrated to Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
at the end of the World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and worked for Sir Edmund Henry Hynman Allenby
Edmund Allenby, 1st Viscount Allenby
Field Marshal Edmund Henry Hynman Allenby, 1st Viscount Allenby GCB, GCMG, GCVO was a British soldier and administrator most famous for his role during the First World War, in which he led the Egyptian Expeditionary Force in the conquest of Palestine and Syria in 1917 and 1918.Allenby, nicknamed...
. Kalmanowitz arrived in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in the 1926 by jumping a merchant marine ship and jumped from job to job, working for several notable people such as Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
, William Randolph Hearst
William Randolph Hearst
William Randolph Hearst was an American business magnate and leading newspaper publisher. Hearst entered the publishing business in 1887, after taking control of The San Francisco Examiner from his father...
, and Louis B. Mayer
Louis B. Mayer
Louis Burt Mayer born Lazar Meir was an American film producer. He is generally cited as the creator of the "star system" within Metro-Goldwyn-Mayer in its golden years. Known always as Louis B...
(MGM).
In 1950 Kalmanovitz acquired the Maier Brewing Company in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and officially entered the brewing industry. Maier Brewing, makers of Brew 102, struggled for a number of years, and in 1958 faced a strong push to be bought out by the Falstaff Brewing Company. Kalmanovitz refused to be bought out, even after threatened by Falstaff to either sell or Falstaff would bury the Maier Brewery. Within a few years Kalmanovitz turned the Maier Brewery around and began making a profit. Along with the brewery and numerous other investments, Kalmanovitz's net worth began to swell. In 1970 Kalmanovitz purchased Lucky Lager
Lucky Lager
Lucky Lager is a beer that has a strong cult following on Vancouver Island. At one time Lucky was actually brewed on Vancouver Island in Victoria but in 1982 Labatt Breweries of Canada moved off the Island and proceeded to tear down the brewery to prevent any competition on the Island...
and merged it with his Maier Brewing Company to form the General Brewing Company with S&P Corporation as its parent.
By 1974 Falstaff had fallen on hard times and was in need of cash. Falstaff's purchase of the Ballantine brands in 1972 had proven to be a major mistake and stretched the company a little too thin. Falstaff sold Kalmanovitz its San Francisco brewery. The cash couldn't save Falstaff, and in 1975 the company was once again in trouble. Kalmanovitz offered to inject $20 million into Falstaff for 100,000 shares of preferred stock. On 28 April 1975, Paul Kalmanovitz gained the controlling interest in the Falstaff Brewing Company. Kalmanovitz more than quadrupled his brewery interests and became a major force on the American beer market.
With the purchase of Falstaff, Kalmanovitz moved the Falstaff headquarters from St Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
, Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
to San Francisco to combine it with General Brewing Company's headquarters. By June, more than 175 of Falstaff's corporate employees were laid off. The United States Securities and Exchange Commission
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
(SEC) opened an investigation of the Falstaff purchase, questioning if shareholders were given proper notification of the sale. The SEC determined that the purchase was conducted improperly. Falstaff stock was barred from trading and removed from the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. Falstaff workers unhappy with the new direction of the company staged a company lockout
Lockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
, which Kalmanovitz and General Brewing called a strike.
Eventually things settled down with Falstaff and production resumed. Kalmanovitz's plans to make a profit off Falstaff were not to turn the company around and reestablish its brand strength in the market, but rather to cut costs drastically throughout. The biggest change was the advertising budget where Kalmanovitz eliminated all types of marketing. Falstaff's market share continued to slide, resulting in plants closing and employees out of work. Falstaff was profitable for the S&P Corporation, but at a cost to works and the communities around the breweries. Kalmanovitz acquired an ailing brewery, fired the corporate personnel, reduced budgets, sold off equipment, stopped plant maintenance, and eliminated product quality control. Kalmanovitz established a standard with Falstaff that was repeated as he purchased Stroh's
Stroh Brewery Company
The Stroh Brewery Company was a beer brewery located in Detroit, Michigan. In addition to their own Stroh's brand, they produced or bought the rights to several other brands including Goebel, Schaefer, Schlitz, Augsburger, Erlanger, Lone Star, Old Milwaukee, Red River, and Signature, as well as...
, National Bohemian, Olympia
Olympia Brewing Company
The Olympia Brewing Company was a brewery in Tumwater, Washington which existed from 1896 until 2003.-History:Leopold Schmidt, a German immigrant from Montana founded The Capital Brewing Company at Tumwater Falls on the Deschutes River in the town of Tumwater, near the south end of Puget Sound...
, Pearl
Pearl Brewing Company
The Pearl Brewing Company was an American brewery, established in 1883 in San Antonio, Texas. In 1985, Pearl's parent company purchased the Pabst Brewing Company and assumed the Pabst name...
, and Pabst
Pabst Brewing Company
Pabst Brewing Company is an American company that dates its origins to a brewing company founded in 1844 by Jacob Best and by 1889 named after Frederick Pabst. It is currently the holding company contracting for the brewing of over two dozen brands of beer and malt liquor from defunct companies...
.
Breweries were not Kalmanovitz's only interests, he was also involved in helping Guide Dogs for the Blind
Guide Dogs for the Blind
Guide Dogs for the Blind is a guide dog school located in the United States, with campuses in San Rafael, California, and Boring, Oregon. It was founded in 1942 to help veterans who had been blinded in World War II.- History :...
and several other charitable organizations. Upon his death, Kalmanovitz's net worth was said to be in excess of $250 million. A sizable portion of his wealth was donated to numerous California hospitals. In addition, his estate also donated the money for the Paul and Lydia Kalmanovitz Library at the University of California, San Francisco
University of California, San Francisco
The University of California, San Francisco is one of the world's leading centers of health sciences research, patient care, and education. UCSF's medical, pharmacy, dentistry, nursing, and graduate schools are among the top health science professional schools in the world...
, Kalmanovitz Hall at the University of San Francisco
University of San Francisco
The University of San Francisco , is a private, Jesuit/Catholic university located in San Francisco, California. Founded in 1855, USF was established as the first university in San Francisco. It is the second oldest institution for higher learning in California and the tenth-oldest university of...
, and the Paul and Lydia Kalmanovitz Appellate Courtroom at the University of California, Davis School of Law (King Hall).
External links
- Falstaff history - Includes tidbits of Paul Kalmanovitz's history
- Narragansett history
- Pabst Brewing Company