Skip to main content Accessibility help
×
Home

Product Line Extension among New England Craft Breweries

  • Joshua Berning and Michael McCullough

Abstract

The U.S. brewing industry was at a low point in the 1980s. Since that time, more than 4,000 new breweries of varying scales and scopes have entered the market. Given the rapid expansion in this industry, which involves large capital costs, it is useful to consider the competitive nature of individual firms. Using a sample of New England breweries, this study identifies several firm and geographic attributes that are linked to firms’ product offerings. We find that the breadth of product lines and nature of competition varies by brewery type and by the economic environment of the market.

  • View HTML
    • Send article to Kindle

      To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      Product Line Extension among New England Craft Breweries
      Available formats
      ×

      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

      Product Line Extension among New England Craft Breweries
      Available formats
      ×

      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

      Product Line Extension among New England Craft Breweries
      Available formats
      ×

Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

Correspondence: Joshua Berning ■ 208 B Conner HallDepartment of Agricultural and Applied EconomicsUniversity of GeorgiaAthens, GA 30602 ■ Phone 706.542.0768 ■ Email jberning@uga.edu.

Footnotes

Hide All

The authors received helpful comments from seminar attendees at the Agricultural and Applied Economics Association annual meeting in Minneapolis, Minnesota, and the Food Distribution Research Society annual meeting in Salt Lake City, Utah. We also received helpful comments from Trey Malone, Jayson Lusk, and seminar attendees in the Department of Agricultural Economics at Oklahoma State University. We thank an anonymous reviewer and the editor, David Abler. We also thank Steven Feeney and Elise Johnson for their help with data collection and Baxter Panola for his input. All mistakes are solely the authors’ responsibility.

The views expressed are the authors’ and do not necessarily represent the policies or views of any sponsoring agencies.

Footnotes

References

Hide All
Abraham, J.M., Gaynor, M., and Vogt, W.B.. 2007. “Entry and Competition in Local Hospital Markets.” The Journal of Industrial Economics 55(2): 265288.
Baumol, W.J., Panzar, J.C., and Willig, R.D. 1982. Contestable Markets and the Theory of Industry Structure. New York, NY: Harcourt Brace and Jovanovich.
Brewers Association. 2013. “Craft Brewer Defined” web page. www.brewersassociation.org/statistics/craft-brewer-defined (accessed September 2013).
Brewers Association. 2015. “Number of Breweries” web page. www.brewersassociation.org/statistics/number-of-breweries (accessed November 2015).
Goldfarb, A. 2014. “A Glorious Craft Lager Revival Is upon Us.” Esquire, April 12.
Goldstein, G.S., and Gronberg, T.J.. 1984. “Economies of Scope and Economies of Agglomeration.” Journal of Urban Economics 16(1): 91104.
Hernandez, B. 2012. “What a Year: Looking Back on 2012.” www.stonebrewing.com/blog/philosophy/2012/what-year-looking-back-2012#ageGate (accessed November 1, 2015).
Love, J.H., and Roper, S.. 2001. “Outsourcing in the Innovation Process: Locational and Strategic Determinants.” Papers in Regional Science 80(3): 317336.
Mitchell, J.W. 2015. “Predicting Craft Beer Trends in 2015.” www.craftbeer.com/craft-beer-muses/predicting-craft-beer-trends-2015 (accessed June 15, 2015).
Porter, M.E. 1980. Competitive Strategy. New York, NY: The Free Press.
Porter, M.E. 1990. The Competitive Advantage of Nations. New York, NY: The Free Press.
Redding, J. 2013. “2012 Industry Review.” The New Brewer 30(3): 86.
Scherer, F.M. 1979. “The Welfare Economics of Product Variety: An Application to the Ready-to-eat Cereals Industry.” Journal of Industrial Economics 28(2): 113134.
Schmalensee, R. 1978. “Entry Deterrence in the Ready-to-eat Breakfast Cereal Industry.” Bell Journal of Economics 9(2): 305327.
Tremblay, C.H., and Tremblay, V.J.. 1996. “Firm Success, National Status, and Product Line Diversification: An Empirical Examination.” Review of Industrial Organization 11(6): 771789.
Tremblay, V.J., and Tremblay, C.H.. 2005. The U.S. Brewing Industry: Data and Economic Analysis. Cambridge, MA: The MIT Press.
Watson, R. 2009. “Product Variety and Competition in the Retail Market for Eyeglasses.” The Journal of Industrial Economics 57(2): 217251.

Keywords

Product Line Extension among New England Craft Breweries

  • Joshua Berning and Michael McCullough

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed