The Okocim Brewery and the Association for the Protection of the Breweries of the Kingdom of Galicia and Lodomeria with the Grand Duchy of Kraków:

A Failed Attempt to Cartelise the Brewing Industry in Galicia

Abstrakt

Galicia was the last territory of the Austro-Hungarian Empire where the issue of propination remained unresolved for a long time. Although the agrarian reforms of 1848 abolished serfdom and many feudal privileges, ambiguous provisions of the imperial patent led to disputes over the continued validity of propination. A subsequent decree confirmed that the right had not been abolished, and the problem resurfaced in the 1860s. Conflicting interests of landowners and towns delayed reforms until 1872-1873, when the abolition of propination was approved while maintaining freedom of alcohol production and licensed retail. The 1875 act formally abolished propination but in practice allowed former holders to retain retail rights until 1910, which provoked strong criticism. In reality, the propination system restricted competition and hindered the development of brewing, favouring small manor breweries and protecting the Galician market from foreign imports. Anticipating its abolition, breweries began to organise. In 1907, an initiative emerged to establish an association of Galician breweries, formally founded in 1909 and active from 1910, representing over 90% of beer production. The organisation focused on market protection and industry cooperation. A key role was played by Jan Albin Goetz of the Okocim brewery, who emphasised autonomy, product quality and an independent distribution network. This strategy enabled Okocim to achieve a marked increase in sales immediately after the abolition of propination and ensured long-term competitive advantages.