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Home
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JWE-Articles
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Journal of Wine Economics Volume 10 | 2015 | No. 3
»
Craft Beer in the United States: History, Numbers, and Geography

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

Kenneth G. Elzinga, Carol Horton Tremblay & Victor J. Tremblay
JEL Clasification: L26, L66, N82, R12
Pages: 242-274
Full Text PDF
Abstract

We provide a mini-history of the craft beer segment of the U.S. brewing industry with partic- ular 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 produc- tion 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.

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