Founding Leopold Schmidt, a
German immigrant from
Deer Lodge, 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. Schmidt and his brother Louis built a four-story wooden brewhouse, a five-story cellar building, a one-story ice factory powered by the lower falls, and a bottling and keg plant. After sampling two containers of water from the Deschutes River with the Whal-Henius Institute, Schmidt declared, "with this water, I believe I can brew better beer than ever" Leopold Schmidt died in 1914 and brewing operations stopped in 1915, It eventually expanded nationwide, repositioned as a low-price lager. During the 1970s, Olympia acquired
Hamm's and
Lone Star. The brewery also produced Buckhorn Beer, which had previously been a product of the
Lone Star Brewing Company. Until the mid-1970s, competitor
Coors of
Colorado had a limited 11-state distribution area; Washington and Montana were not added until 1976, and
Oregon did not approve sales of Coors in grocery stores until 1985. Between 1970 and 1980 Olympia faced flat revenues among consolidating nationwide breweries and, in 1982, the Schmidt family, which owned and operated the brewery and company, elected to sell the company. Olympia was subsequently purchased by
Pabst Brewing Company in 1983 through a stock swap. The
G. Heileman Brewing Company purchased
Lone Star Beer and other brands from Pabst. The Stroh Brewing Company put itself up for sale in 1999; Pabst bought most of the Stroh brands along with
Miller Brewing Company. The Miller Brewing Company subsequently sold the Olympia Brewery in Tumwater. File:Old Olympia Brewery as seen from Tumwater, WA park.jpg|The old Tumwater brewery building, 2012 File:Tumwater Brewery .jpg|The old Olympia brewery in Tumwater, 2018
21st century The brewery was eventually purchased by
Miller Brewing Company. For a time, the Olympia brewery took over the brewing of other Pacific Northwest brands as their original breweries were closed one by one, including the
Lucky Lager brewery in
Vancouver, Washington, the
Henry Weinhard's brewery in
Portland, and even the brewery of its arch-rival,
Rainier Beer, in
Seattle. In 2002, SAB bought out Miller Brewing Co.; SABMiller closed the Tumwater facility in June 2003, citing the unprofitability of such a small brewery. Pabst was purchased, along with the Olympia label, by beer industry veteran
Eugene Kashper with backing from
TSG Consumer Partners in 2014, and Olympia Beer was brewed under contract by
MillerCoors at their brewery in
Irwindale, California. Ag Energy Resources of
Benton, Illinois purchased the machinery from Olympia Brewing to make
ethanol for motor fuel use. On January 25, 2021 Pabst Brewing Company announced on Twitter that it was "temporarily pausing production" of Olympia Beer because of a lack of demand and to focus attention on its distilled spirit line under the Olympia Distilling Company brand. , Olympia Beer is produced in
Saskatoon, Saskatchewan by
Great Western Brewing.
Closure of brewery The 1934 Olympia Brewery, situated on on Custer Way in Tumwater, was shuttered in 2003 and the campus has since remained in a "derelict" state. The site was privately purchased in 2016 and by the 2020s, the site was described as "depressing", "unsightly" and an "eyesore". Part of the brewery complex was heavily damaged in a fire on October 7, 2018. The administration building's south side partially collapsed, and a 3-alarm fire call caused fire units to respond from many neighboring departments. An oil leak from the brewery contaminated nearby Deschutes River in 2019; the city fined the owner and a settlement was agreed to with the state. Local citizens and the city of Tumwater have suggested several proposals to convert the site for various uses, including reopening the facility for another brewery. As the campus resides in what is known as the "Brewery District", additional suggestions include converting the buildings into a commercial and residential mixed-use complex, as part of the district. Possible contamination at the brewery has prevented any actions to convert the grounds for other use.
Eminent domain has been suggested, but the city found the costs to be prohibitive. ==Use of artesian water==