The Loetz glassworks was founded in 1840 by Johann Joetz at Klostermuhle in Bohemia, which was then part of the Austro-Hungarian Empire. Following Loetz's death in 1848 the factory was continued by his widow under the style of Glasfabrik Johann Loetz-Witwe (the Widow Johann Loetz Glassworks). The business continued in this name until closing during the Second World War.

Under the founder's grandson, Max Ritter von Spaun, director of the company from 1879, the works were modernised and innovations in production and range of glass were introduced. At the Paris International Exposition of 1889 Loetz showed a new type of veined glass which simulated hardstone which won general praise. The company's reception at the World's Columbian Exhibition in Chicago in 1893 was similarly encouraging, after which von Spaun concentrated on developing iridescent finishes. It was the success of these experiments that led to the Loetz's company's most popular and recognisable work.