Still All in the Family: Next generation of Martis stepping up to run August Schell brewery

NEW ULM -- The August Schell's Brewing Company celebrated its 160th anniversary in 2020 and has seen many shifts in the industry.

As Schell's reaches this latest milestone, the company made the shift to the next generation.

Last fall, Schell's Brewery -- the second oldest family-run brewery in the United States -- saw President/CEO Ted Marti transition leadership over to his three sons, Kyle, Jace and Franz.

There was no official retirement date, but as Ted reached 70 years of age, he began to step back, with Kyle taking over the day-to-day administrative business.

When the transition began back in September, Kyle said "It is kind of nice, we all have the different areas we are working in to move the business forward. Jace has a big part of working with the brewery department and Dave Berg, our other head brewer, coming up with innovations and pushing the business forward. Then there is Franz, who is the Swiss Army Knife of the place doing a little bit of everything. He works hard maintaining the grounds and the buildings."

Ted said he will spend most of his time finding and cataloging artifacts from the brewery with his wife Jodi, but will continue to check in with his sons and offer his two-cents on the business.

Kyle said his dad will still consult and be a sounding board at the company and will remain on the board of directors.

Kyle, Jace and Franz represent the sixth generation of the family running Schell's.

The family and the brewery can trace its lineage back to August Schell who founded the business in 1860.

August Schell came to New Ulm with the Cincinnati Turners. His first business was a flour mill on Front Street. After a few years, he decided to build a brewery.

Ted took over the brewery in the mid-1980s when the brewery was in a difficult spot. He said the equipment was older and run down and the company needed an infusion of capital. This is when they began dabbling in craft beers.

"There were lots of people looking for breweries to produce their beer for them," Ted said. "We did a lot of contract brewing. If anything, that helped us generate cash to do upgrades."

Around that time, Ted's brother Georg began offering tours of the brewery to the public. Georg would play his accordion and entertain the crowds. These events proved popular. The first Bockfest was held in 1987.

This was a perfect time for Schell's to take advantage of the growing popularity of craft brewing.

By the 1990s there was a shift in perception toward small breweries and small local breweries were preferred.

As the original adopters of craft beers age, there are further trends toward healthy beers with lower calories and even a lower alcohol content.

In 2020, to honor the 160th anniversary of Schell's, the brewery planned to have larger group events, but the COVID-19 pandemic changed that. Over the last year, Schell's promoted 160 Random Act of Kindness events, including community outreach such as beer deliveries to the nursing homes that are under lockdown; flower deliveries to NUMC, and a cash donation to local fire departments.

The brewery released a line of specialty beer series called "Shift Happens." The beer is released in four-packs of 16 oz cans.

"It was kind of a nice departure," Kyle Marti said. "Our breweries each got a chance to use specialty hops."

The Shift Happens series is a way for the company to discuss how things are brewed at Schell's, but also a chance to talk about the generational shift happening at Schell's.

Reflecting on his time as president of Schell's, Ted said he was proud of rebuilding the brewery on the inside.

"We're capable of doing different beers and great beers," he said. Ted believes his tenure will be remembered for moving Schell's from a typical American Lager to a respected craft brewery.

As his sons take over the family business, the goal will be to build off this success.

"The goal is to let people know Schell's beers are just as good as the big guys, if not better," Kyle said. "We're not just the brewery down the street. We've invested 160 years into making beer as good as we are."

Kyle believed the ongoing struggle will be keeping up with the market. "Change is the name of the game," he said. "Being nimble is important. it is crazy how fast people like stuff and move on to something else."

Right now there is a trend toward seltzer, but that could change soon. IPAs are still the darling of the industry. Kyle said Schell's will continue to give consumers what they want.