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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.
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 Associations1.6. 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 Beer1.11. 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 Access1.13. 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 Promoters2.2.3. 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. Introduction3.2. 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 Breweries3.4.1. 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. Introduction5.2. 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. Introduction6.2. 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. ConclusionChapter 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. ConclusionChapter 8. The Emergence and Survival of Microbreweries in Hungary
Imre Ferto, József Fogarasi, Anita Major and Szilárd Podruzsik
<8.1. Introduction8.2. The Structural Evolution of the Hungarian Beer Industry
8.2.1 Historical and Communist Period
8.2.2. Liberalization Period – 1990s
8.2.3. Consolidation in the 2000s
8.2.4. The Growth of the Microbreweries
8.3. Trends of Beer Production and Consumption in Hungary After 20008.4. Determinants of Firm Survival
8.5. Survival of Microbreweries
8.6. Conclusions
Chapter 9. Birth and Diffusion of Craft Breweries in Italy
Christian Garavaglia
9.1. Introduction
9.2. Trends in the Italian Brewing Industry
9.2.1. Industry Consolidation: the Emergence of National Leaders
9.2.2. The Advent of Craft Breweries
9.3. Theories About Small Firms Entry into Mature Industries9.4. Explaining the Entry of Craft Breweries in the Italian Beer Industry
9.4.1. Broad Social Dynamics, Changes in Demand and the Entry of the Pioneering Firms
9.4.2. Legitimization, Emulation and the Growth of Craft Brewing
9.5. Conclusions
Chapter 10. From Pilsner Desert to Craft Beer Oasis: the Rise of Craft Brewing in the Netherlands
Michiel van Dijk, Jochem Kroezen and Bart Slob
10.1. Introduction
10.2. Theoretical Perspectives on the Renewal of Mature Industries10.3. Methodology and Data
10.4. Evolution of the Beer Sector in the Netherlands
10.4.1. Prehistory (1450–1970)
10.4.2. Foundations for Renewal (1970–1981)
10.4.3. Emergence of Craft Breweries (1981–2003)
10.4.4. 2003–present: Rapid Expansion of Craft Breweries
10.5. What Explains the Emergence and Proliferation of Craft Breweries in the Netherlands?
10.5.1. Increasing Demand for Alternative Beers10.5.2. Increasing Supply of Brewery Entrepreneurs and Resources
10.6. Discussion and Conclusions
Chapter 11. From Macro to Micro: the Change of Trendsetters on the Polish Beer Market
Aleksandra Chlebicka, Jan Falkowski and Jan Lichota
11.1. Introduction
11.2. Key Trends on the Polish Beer Market Since 1989
11.3. Market Structure and Distribution
11.4. The Emergence of Micros in the Polish Brewing Sector
11.4.1. Global Trends11.4.2. Definitional Issues
11.4.3. Microbreweries in Numbers
11.4.4. Situation Change
11.4.5. Strategies Adopted by Microbreweries
11.4.6. Contracting Hops
11.4.7. Consumers
11.5. Conclusions
Chapter 12. Craft beer In Slovakia
Ján Pokrivcák, Drahoslav Lancaric, Radovan Savov and Marián Tóth
12.1. Introduction12.2. Literature Review
12.3. Beer Consumption, Production and Trade in Slovakia
12.4. Structural Changes in the Brewing Industry
12.5. Drivers and Constraints on Craft Breweries
12.6. Conclusions
Chapter 13. The Recent Advent of Micro Producers in the Spanish Brewing Industry
Christian Garavaglia and David Castro
13.1. Introduction
13.2. Some Historical Facts About Beer in Spain
13.2.1. The Modern Spanish Beer Industry13.3. The
Christian Garavaglia is Assistant Professor at the Department of Economics Management and Statistics, University of Milano-Bicocca, and Research Affiliate at the ICRIOS (The Invernizzi Center for Research on Innovation, Organization, Strategy and Entrepreneurship), Bocconi University, Italy. His research interests include industrial organization, industrial dynamics, industry evolution, the economics of beer and consumer preferences for food.
Johan Swinnen is Professor of Economics and Director of the LICOS Centre for Institutions and Economic Performance at the University of Leuven (KUL), Belgium. He is also Senior Research Fellow at the Centre for European Policy Studies (CEPS), Brussels, where he directs the programme on EU agricultural and rural policy. He was previously Lead Economist at the World Bank and Economic Advisor at the European Commission. He consults for the OECD, FAO, EBRD, UNDP, IFAD and to several Governments, and was coordinator of several international research networks on food policy, institutional reforms, and economic development. He was President-elect of the International Association of Agricultural Economists, a Fellow of the European Association of Agricultural Economists and President of the Beeronomics Society. He has published widely on political economy, institutional reform, trade, agricultural and food policy.
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