Grêmio Esportivo Brasil was founded after a dispute between players and directors of Sport Club Cruzeiro do Sul, which was supported and managed by employees of Cervejaria Haertel.

The greatest moment in the club's history came during the 1985 Brazilian League, when Brasil managed to reach the semi-finals after moving past giants such as Flamengo.

However, the club from Pelotas did not manage to defeat Bangu from Rio de Janeiro and ended up missing the glory of taking part in the final match.

On January 16, 2009 the team bus plunged 130 ft into a ravine in Rio Grande do Sul when returning from a friendly match against Santa Cruz.

Striker Claudio Milar, defender Regis and goalkeeping coach Giovani were killed in the accident caused by the driver losing control when making a turn, more than 20 others were injured.