The Milwaukee Brewers got their name because of the number of breweries that were in the city. Some of those breweries at the time were Miller, Schlitz, Pabst, among others. These breweries employed thousands of workers and the Milwaukee Baseball team nickname is a homage to those companies and workers.
The nickname was originally used at the turn of the 20th Century by the city's minor league teams in the American Association and the Western League.
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Originating in Seattle, Washington, as the Seattle Pilots, the club played for one season in 1969 before being acquired in bankruptcy court by current MLB Commissioner Bud Selig and then moved to Milwaukee.
They were initially for one year, the Seattle Pilots. The team then moved to Milwaukee, WI to become the Milwaukee Brewers. In 1966, The Milwaukee Braves moved to Atlanta.
Milwaukee has a history and heritage of breweries (where beer is made), so the name was appropriate for the team.