Skip to main content
×
Home
    • Aa
    • Aa

Craft Beer in the United States: History, Numbers, and Geography*

  • Kenneth G. Elzinga (a1), Carol Horton Tremblay (a2) and Victor J. Tremblay (a3)
Abstract
Abstract

We provide a mini-history of the craft beer segment of the U.S. brewing industry with particular emphasis on producer-entrepreneurs but also other pioneers involved in the promotion and marketing of craft beer who made contributions to brewing it. In contrast to the more commodity-like lager beer produced by the macrobrewers in the United States, the output of the craft segment more closely resembles the product differentiation and fragmentation in the wine industry. We develop a database that tracks the rise of craft brewing using various statistical measures of output, number of producers, concentration within the segment, and compares output with that of the macro and import segment of the industry. Integrating our database into Geographic Information Systems software enables us to map the spread of the craft beer segment from its taproot in San Francisco across the United States. Finally, we use regression analysis to explore variables influencing the entrants and craft beer production at the state level from 1980 to 2012. We use Tobit estimation for production and negative binomial estimation for the number of brewers. We also analyze whether strategic effects (e.g., locating near competing beer producers) explain the location choices of craft beer producers. (JEL Classifications: L26, L66, N82, R12)

Copyright
Footnotes
Hide All
*

The authors thank Alexander McGlothlin and Christopher Brainerd for research assistance, John and Karen Gabriel for help with mapping, Anand Swaminathan for providing brewpub data, and Orley Ashenfelter for encouragement to take on this study. They also appreciate helpful comments from James Adams, Anita McGahan, Todd Pugatch, F.M. Scherer, and the participants at the American Association of Wine Economists 2014 conference. Financial assistance from the Marshall Jevons Fund is gratefully acknowledged.

Footnotes
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

G. R. Carroll , and A. Swaminathan (2000). Why the microbrewery movement? Organizational dynamics of resource partitioning in the U.S. brewing industry. American Journal of Sociology, 106 (3), 715762.

S. Gibbons , and H. Overman (2012). Mostly pointless spatial econometrics? Journal of Regional Science, 52 (2), 172191.

P. Krugman (1998). What's new about the new economic geography? Oxford Review of Economic Policy, 14(2), 717.

P. Krugman (2011) The new economic geography, now middle-aged. Regional Studies, 45(1), 17.

M. Manuszak (2002). Endogenous market structure and competition in the 19th century American brewing industry. International Journal of Industrial Organization, 20, 673692.

E. Silberberg (1985) Nutrition and the demand for taste. Journal of Political Economy, 93(5), 881900.

J. F. M. Swinnen (2011). The Economics of Beer. Oxford: Oxford University Press.

C. H. Tremblay , and V. J. Tremblay (2011). Recent economic developments in the import and craft segments of the U.S. brewing industry. In J. F. M. Swinnen (ed.), The Economics of Beer. Oxford: Oxford University Press, pp. 141160.

N. Yang , J. J. McCluskey , and M. P. Brady (2012). The value of good neighbors: A spatial analysis of the California and Washington state wine industries. Land Economics, 88(4), 674684.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Wine Economics
  • ISSN: 1931-4361
  • EISSN: 1931-437X
  • URL: /core/journals/journal-of-wine-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Type Description Title
UNKNOWN
Supplementary Materials

Elzinga supplementary material S1
Elzinga supplementary material

 Unknown (1.0 MB)
1.0 MB

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 85
Total number of PDF views: 246 *
Loading metrics...

Abstract views

Total abstract views: 1079 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 19th August 2017. This data will be updated every 24 hours.