After almost two months of striking, the company announced that it would be closing its Milwaukee brewery in an effort to stay competitive and reduce excess production capacity.
[2] However, in the years following, the company's market share and overall sales declined, due in part to a change in their beer formula and a nationwide ad campaign which were both poorly received.
That year, members of the Brewery Workers Local 9, who represented approximately 700 workers at the company's Milwaukee plant,[note 2] announced they would go on strike if the company and union hadn't come to an agreement regarding new labor contracts by midnight on May 31, when the current contracts were set to expire.
[1] At the time, the United Press International (UPI) was reporting that some industry experts thought a walkout at the plant could actually help Schlitz to save money and be more competitive.
Schlitz would still be headquartered in Milwaukee and would continue to operate a container plant in nearby Oak Creek, Wisconsin.