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Economic Perspectives on Craft Beer

A Revolution in the Global Beer Industry

Ingenaaid Engels 2017 9783319582344
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This book investigates the birth and evolution of craft breweries around the world. Microbrewery, brewpub, artisanal brewery, henceforth craft brewery, are terms referred to a new kind of production in the brewing industry contraposed to the mass production of beer, which has started and diffused in almost all industrialized countries in the last decades. This project provides an explanation of the entrepreneurial dynamics behind these new firms from an economic perspective.
The product standardization of large producers, the emergence of a new more sophisticated demand and set of consumers, the effect of contagion, and technology aspects are analyzed as the main determinants behind this `revolution'. The worldwide perspective makes the project distinctive, presenting cases from many relevant countries, including the USA, Australia, Japan, China, UK, Belgium, Italy and many other EU countries.


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Chapter 1. Introduction
Christian Garavaglia and Johan Swinnen
1.1. Introduction
1.2. Defining Craft Breweries and Craft Beer
1.2.1. "Gypsy brewers": are contract breweries real craft?
1.3. Concentration and Homogenization in the Global Beer Industry 1900-1980
1.4. When did the Craft Beer Revolution Start?
1.5. A Growing Demand for "Different" Beers
1.5.1. Demand for Variety: A Reaction to Homogenization in Beer Market
1.5.2. Increasing income
1.5.3. Peer Effects in Beer Consumption and Consumer Associations
1.6. Pioneers and Entrepreneurs in Craft Brewing
1.7. The Re-emergence of Small Firms in a Concentrated Market: Generalists and Specialists
1.8. Legitimization, Information and Networks
1.9. Developing Technology and Capital Markets for Small Brewers
1.10. The Geography of Craft Beer
1.11. Regulations
1.12. The Macro Brewers' Responses to Craft Brewing
1.12.1. Craft-Style Beer Production by Macro-Brewers
1.12.2. Take-Over of Craft Brewers
1.12.3. Infrastructure Investment, Free Riding and Consumer Access
1.13. Conclusion
Chapter 2. Craft Beer in the United States: Strategic Connections to Macro and European Brewers
Kenneth G. Elzinga, Carol Horton Tremblay and Victor J. Tremblay
2.1. Evolution of US Craft Brewing
2.2. The Early Brewers, Promoters, and Brewmeisters
2.2.1. The Early Brewers
2.2.2. The Early Promoters
2.2.3. The Brewmeister
2.3. Marketing and Strategic Interactions between US Craft and Macrobrewers
2.3.1. Marketing Differences between Craft Brewers and Macrobrewers
2.3.2. Macrobrewer Responses and Other Strategic Issues
2.4. The European Connection and Back
2.5. Conclusion
Chapter 3. The Canadian Craft Beer Sector
Alfons Weersink, Kevin Probyn-Smith and Mike Von Massow
3.1. Introduction
3.2. Structure of the Canadian Beer Sector
3.2.1. Consumption
3.2.2. Production
3.2.3 History of Canadian Alcohol Regulations
3.3. Drivers of the Rise in Craft Brewing in Canada
3.3.1 Regulations
3.3.2. Demographics
3.2.3. Culinary Tourism/Demand for Local
3.4. Constraints to Growth of the Craft Breweries
3.4.1. Regulations
3.4.2. Production Costs
Chapter 4. Craft Brew Industry in Latin America: The case of Colombia
Daniel Toro-Gonzalez
4.1. Introduction
4.2. Beer Industry in Latin America
4.3. Brewing Industry in Colombia
4.4. Drivers and Barriers of Craft Brewing in Colombia
Chapter 5. Belgium: Craft Beer Nation?
Eline Poelmans and Johan Swinnen
5.1. Introduction
5.2. Consolidation of the Belgian Beer Industry in the Twentieth Century
5.3. Defining Belgian Craft Beer
5.4. Changes in Belgian Beer Consumption
5.5. The Growth of Craft
5.6. Brewers of Craft Beers
5.7. Trade of Craft Beers
5.8. Drivers and Champions of Belgian Craft Beers: Conclusions
Chapter 6. Entry, Survival and Profits: the Emergence of Microbreweries in Denmark
Jan Bentzen and Valdemar Smith
6.1. Introduction
6.2. The Analytical Framework for Market Entry of Microbreweries
6.3. Empirical Data and Results from the Survey on Market Entry
6.3.1. Motivation and Goals
6.3.2. Social Factors and Human Capital
6.3.3. Entry Barriers
6.3.4. Environment
6.4. Survival of Microbreweries and Profits
6.5. Future Perspectives and Strategies of Microbreweries
6.6. Conclusion
Chapter 7. Craft Beer in Germany: New Entries in a Challenging Beer Market
Lutz Depenbusch, Malte Ehrich and Uwe Pfizenmaier
7.1. Introduction
7.2. Characteristics of the German Beer Market
7.3. Drivers and Constraints of Craft Beer Production in Germany
7.4. Market Concentration in German States and the Effect on Microbreweries
7.4.1. Data
7.4.2. Empirical Model
7.5. Discussion
7.6. Conclusion
Chapter 8. The Emergence and Survival of Microbreweries in Hungary
Imre Ferto, Jozsef Fogarasi, Anita Major and Szilard Podruzsik

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