General view of part of the South Water Street freight depot of the Illinois Central Railroad, Chicago, Ill. Taken with Kodachrome by Jack Delano, 1943.

In 1848, Gottlieb and Frederika Pabst arrived in the United States and settled in Chicago. Their son Frederick found employment on Lake Michigan ships. In 1862, Frederick married Maria Best, daughter of Philip Best, founder of the Best Brewing Company. He joined the brewery as a brewer in 1863.

Following Philip Best's retirement in 1867, Frederick Pabst and Emil Schandein, who was married to Frederick's sister-in-law and served as the vice-president of Best Brewery, worked together to expand the company. They took advantage of the Great Chicago Fire of 1871, which led to the destruction of numerous breweries in Chicago and helped establish Milwaukee as a leading beer-producing city in the United States. After Schandein's passing in 1889, Pabst assumed the role of president, with Lisette Schandein, Emil's widow, serving as the vice president. In 1890, the company officially became known as Pabst Brewing Company, with Pabst making this change from the previous "Best" branding.