There are many, many neighborhood "tied house" bars in Chicago, Milwaukee and throughout the upper Midwest. Created by breweries (primarily Schlitz, Pabst, and Hamm's) from 1880s to 1919 to sell product. First body blow to them was of course Prohibition, but after Repeal they were nearly regulated out of existence in New Deal fervor.
Alcoholic beverage markets were controlled by states, and most all of them took a cue from new Federal laws prohibiting vertical integration - i.e., you could make a product but not sell it directly to consumers. States regulated and licensed AB at the manufacture, wholesale, and retail level, and if you had a license for one level you couldn't have one at any other level.
Pretty much ended the "tie house" system, and kind of a shame. Some of those brewery-owned bars were absolutely gorgeous. My favorite is Schubas in Chicago, now a bar-restaurant-live music club where Hawkspawn frequently plays.
The crazy thing now is Brewpubs are ubiquitous everywhere, a single location that makes beer and sells it straight to the customer. Not sure if those old laws have been changed or just ignored as obsolete.
America lost one in six of its neighborhood bars in a single decade, and the killer was real estate math.
A bar like this can pour $3 beers because the building was paid off decades ago. The owner often lives upstairs. No rent, no investors, no debt service on a Pabst sign that's been hanging there for 40 years.
The moment that building sells, the math dies with it. A new operator inherits a market-rate lease, which forces $9 drinks, which forces a renovation to justify $9 drinks, which produces another exposed-brick cocktail bar where the dive used to be.
The Midwest kept its dive bars because of how they got built in the first place. Before Prohibition, Milwaukee's breweries put up corner taverns themselves. Pabst and Schlitz wanted guaranteed outlets for their beer, so they built bars directly into residential blocks. That's why these places sit on quiet snowy corners between houses instead of on commercial strips where rent explodes.
Chicago had around 3,300 tavern licenses in 1990. It's down to about 1,200. At the worst of the decline, America was losing six neighborhood bars a day.
And every single closure is permanent. You can't build a dive bar. You can only inherit one.