After Team U.S.A. initially loses to Team Germany in the final round of Beerfest, Jan challenges the Germans and Baron Wolfgang to make it “double or nothing” on the von Wolfhausen beer recipe that they want so much. They accept, and the final challenge is set: A special version of the “Line Chug” where every member of each team must chug back a “Das Boot” (a large boot-shaped glass full of beer) without spilling one drop. If Team Germany wins, then they will get the beer recipe, but if Team U.S.A. wins, then they will get Baron Wolfgang’s brewery, which Jan and Todd had earlier discovered that they were the rightful owners of.
The last member of Team Germany gets his team disqualified by letting the last drop of his beer hit the table, giving Team U.S.A. the victory and the Beerfest championship. Baron Wolfgang tosses Jan and Todd the key to the brewery and gives them a begrudging salute before walking away.
As the team celebrates their victory in Amsterdam, they go down an alley and run into Willie Nelson, who recruits them as his teammates in an underground pot-smoking competition, hinting at a sequel called “Potfest.”
Phil (Kevin Heffernan) discovers that Gam Gam’s (Cloris Leachman) nurse Cherry (Mo’Nique) is actually a spy under the employ of Baron Wolfgang von Wolfhausen (Jürgen Prochnow) that is on a mission to steal (or get back, as Wolfgang believes) the secret von Wolfhausen beer recipe from Jan (Paul Soter) and Todd (Erik Stolhanske). After she downloads what she believes is the recipe from Fink’s (Steve Lemme) computer onto a disc, Phil confronts and fights her, but she ends up pushing him into a vat of the beer. While she makes her getaway, he drowns. Jan finds Phil shortly afterwards, and he, Todd, Fink, and Barry (Jay Chandrasekhar) come to believe that he had killed himself, and they decide to forget about competing in Beerfest.
At the reception following Phil’s funeral, Gam Gam comes before Jan, Todd, Fink, and Barry and tells them that she knows all about Beerfest and how they don’t want to compete in it anymore. She then proceeds to tell them all about her relations with Jan and Todd’s great-grandfather, Baron Ludwig von Wolfhausen: She was indeed a prostitute that Ludwig was having liaisons with while married to a baroness, and they fell in love and she became pregnant with his first-born son, Johan (Donald Sutherland), the brothers’ grandfather. When the baroness found out about Ludwig’s affair with her and the illegitimate son it produced, she had her and Johan tarred, feathered, and run out of town. However, Ludwig was able to give his beloved doll Popo to Johan before he was exiled, and he hid the beer recipe in it, which Jan and Todd later found. Gam Gam tells Jan and Todd that all of this means that they are the rightful heirs of the von Wolfhausen brewery that Wolfgang is in charge of, and she encourages them to forge ahead with their plans to win Beerfest and also to reclaim the brewery. When Fink asks the guys where they will find a fifth man, Phil’s previously unknown identical twin brother Gil (also Kevin Heffernan) appears. He tells them that he had taught Phil everything he knew about beer drinking and wanted to fulfill his legacy by taking his place on the team. The team happily allows him to join them, especially after he shows that he is an even better drinker than Phil was.
When they get to the competition’s location, they are unable to provide the password for admittance, but they get around this problem by hiding in a “Trojan keg” and sneaking in. After they reveal themselves, Wolfgang who is the master of ceremonies orders them all thrown out, but Jan and Todd stake their claim as the real owners of his brewery by going over to the portraits of their ancestors and pointing out how they uncannily resemble them. Gil then goads Wolfgang into letting him and his team compete by questioning the German team’s courage.
Team U.S.A. makes it to the finals against Team Germany, and they tie their Best-Of-Seven series at three apiece going into the final event, the “Line Chug”, where they must all chug back a stein of beer (with the team anchors chugging back a large boot-shaped glass of beer called a “Das Boot”) without spilling one drop. Before the event starts, Cherry shows up at Wolfgang’s side, and Wolfgang tells Team U.S.A. about her status as his finest secret agent and that he had sent her to keep an eye on them.
As Gil, the team anchor, is chugging his Das Boot, Cherry comes up to him and tells him that she killed his brother. This causes him to crack and spill his beer, allowing the Germans to become the champions…..at first. When Wolfgang tells Jan to say “hello” to the family whore (Gam Gam) for him, Jan challenges him and the Germans to make it “double or nothing” on the beer recipe, and then he presents the piece of paper it is written on for all to see. He tells Wolfgang that, if the German team wins, they will get the recipe, but if his team wins, then they will get his brewery. Wolfgang rejects the challenge and then pulls out the disc Cherry got for him. She tells Jan that she already stole the recipe off of Fink’s computer, but Fink reveals that he had never stored the recipe on it, and what she actually stole was a recipe for a low-carb strawberry beer that he and his teammates created. Enraged at Cherry for her failure, Wolfgang has his henchmen take her away and kill her. Fink then lays down the challenge: Another Line Chug, but this time, they will ALL chug back Das Boots. Wolfgang and the Germans accept.
Team U.S.A. successfully chugs their Das Boots, but the anchor of the German team fails to drink the last drop of his beer, which drops onto the table, disqualifying the team and giving Team U.S.A. the victory and the championship. Wolfgang tosses Jan and Todd the key to the brewery and gives them a begrudging salute before walking away.
As the credits roll, the gang is shown celebrating their victory in Amsterdam. While trying to find their way back to their hotel, they go down an alley and run into Willie Nelson (himself). They ask him what he is doing here, and he tells them that he has come to participate in a secret international pot-smoking competition, but he has no team because his teammates Cheech and Chong have chickened out on him. He asks if they would like to be his teammates, and they accept. As they enter the competition’s secret location, a title card comes up on the screen that says “Coming Soon Potfest.”
Thanks Tornado Dragon!