During the 1970s, sales declined and in 1978 the company posted its first ever financial losses. The Falls City board elected to cease production rather than fight the onslaught of national brands that were gaining momentum in Falls City's core markets, which by then included Georgia and Mississippi as well as Tennessee, Kentucky, Indiana, Virginia and West Virginia. The Falls City and Drummond Bros. labels were sold to G. Heileman Brewing Company of La Crosse, Wisconsin, and were then brewed at Heileman's Evansville, Indiana, brewery (the former Sterling Breweries facility) and at its Newport, Kentucky, brewery, formerly known as the George Wiedemann Brewery. G. Heileman also launched a low calorie version of Falls City, called Falls City Light. Louisville residents did not take kindly to the fact that their hometown beer was no longer being brewed in Louisville. Many longtime drinkers immediately swore off Falls City for that reason alone.