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Article
Publication date: 29 June 2012

Douglas W. Murray and Martin A. O'Neill

The purpose of this paper is to examine the underexplored niche market potential of craft beer, especially as it may relate to independent food and beverage operations, as…

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Abstract

Purpose

The purpose of this paper is to examine the underexplored niche market potential of craft beer, especially as it may relate to independent food and beverage operations, as a means of gaining competitive advantage.

Design/methodology/approach

Data were collected through the distribution of a survey instrument to craft beer and home brewers, designed to assess the demographic profile, purchasing/restaurant selection, and decision behavior of this group and assess the likelihood of their future behavioral intentions toward continued participation in the craft beer segment.

Findings

The paper reveals that craft beer and micro brew pub success has been driven by the home brew movement and continues to gain market share at the expense of broad line food service and macro beer producers. The demographic profile of this group shows age range, income, and educational levels sufficient to drive continued growth. The high satisfaction and likelihood to recommend scores support this assessment.

Research limitations/implications

The sample is limited to members of the Brewers Association, the American Home Brewers Association, and craft beer enthusiasts known to members of the organization. Additionally, the survey was administered electronically limiting participation to people comfortable with this medium.

Practical implications

F&B operators who demonstrate commitment to craft beer through server education, beverage list commitment, and supporting events can achieve market differentiation and dominance within the niche; leading ultimately to competitive advantage.

Originality/value

This research sheds light on underexplored areas of craft beer and the opportunity for independent F&B operators to identify and penetrate an increasingly important niche market, which to date has been viewed primarily from the perspective of microbrew pubs.

Details

British Food Journal, vol. 114 no. 7
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 17 August 2020

Eric Beckman, Fang Shu and Tianyu Pan

The purpose of this research paper is to examine whether enduring involvement theory plays a role in predicting craft beer and food festival visitors' experience of the…

Abstract

Purpose

The purpose of this research paper is to examine whether enduring involvement theory plays a role in predicting craft beer and food festival visitors' experience of the festivalscape. Though craft beer and brewing is a growing area of research, there has been limited studies and theory application in this area. Around the world, craft breweries are increasing in number and producing more unique styles of beer as the demand for craft beer increases. Craft beer consumers visit many of these breweries and are attracted to craft beer festivals in which they can sample multiple local, regional, national and international craft beers.

Design/methodology/approach

A quantitative methodology was used based on data collected at the site of the festival. Researchers collected 204 useable surveys from visitors attending the North Miami Brewfest in North Miami, Florida, USA. Structural equation modeling was employed to examine the relationships among enduring involvement, festivalscape, satisfaction, revisit intention and word-of-mouth.

Findings

The results revealed that enduring involvement is significant in predicting all four factors of festivalscape (food/beverage quality, convenience, facility and festival staff). The festivalscape factors facility, food quality and festival staff predicted festival attendee satisfaction which in turn predicted both revisit intention and word-of-mouth. However, the festivalscape factor convenience did not influence satisfaction.

Research limitations/implications

The authors surveyed only one festival in one region in South Florida. Further studies can survey multiple festivals in multiple regions to increase the generalizability of the research model. Enduring involvement theory could be applied to other niche areas in hospitality and tourism in the future (in addition to craft beer tourism).

Practical implications

Craft beer festival organizers should appeal to craft beer clubs, breweries and publications to attract those with a commitment to the craft beer industry to their event. People with an enduring, lasting commitment to craft beer are more likely to have a positive experience of the festivalscape at the event. Lastly, festival organizers should focus on the festivalscape factors facility, festival staff and food and beverage quality to influence satisfaction at the event.

Originality/value

This project applies enduring involvement theory in a festival setting. The research is further unique by adding enduring involvement as a predictor of festivalscape experience.

Details

International Journal of Event and Festival Management, vol. 11 no. 4
Type: Research Article
ISSN: 1758-2954

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Article
Publication date: 30 January 2020

Anna Carbone and Luisangela Quici

The purpose of this paper is to contribute understanding tendencies of the Italian demand for craft beer. More in details, it seeks at exploring consumers’ awareness about…

Abstract

Purpose

The purpose of this paper is to contribute understanding tendencies of the Italian demand for craft beer. More in details, it seeks at exploring consumers’ awareness about craft beer, their attitudes, habits and behaviors. It also aims at assessing the impact of each and all these features on consumers’ choice. At last, the paper frames different consumers’ profiles.

Design/methodology/approach

The analysis is based on an online survey associated with a choice experiment designed for assessing willingness to buy (WTB) and willingness to pay (WTP) for craft vs industrial beer. Factors influencing consumers’ expenditure for craft beer are explored via an OLS estimation of a simple regression model. Afterwards, different consumers’ profiles are depicted via cluster analysis.

Findings

The survey shows that, overall, Italian consumers appreciate craft beers and are interested in this market. Socio-demographic characteristics impact this inclination but have no significant influence on the results of the choice experiment. Market knowledge, preferences and consumption habits influence consumer spending. Five different consumer profiles emerge.

Originality/value

The research proposes a combined original methodology for assessing beer consumers’ features and their impacts on beer WTB and WTP. The complementary perspectives adopted provide new insights on craft beer demand. Results are of interest for craft brewery managers and for the design of policies aimed at promoting and expanding the sector. Enlarging the sample and improving its representativeness would allow for more general results.

Details

British Food Journal, vol. 122 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 5 February 2018

Naiara Barbosa Carvalho, Luis Antonio Minim, Moysés Nascimento, Gustavo Henrique de Castro Ferreira and Valéria Paula Rodrigues Minim

The purpose of this paper is to determine the demographic characteristics and habits of craft beer consumers, as well as to identify the motivational factors for consumption.

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3073

Abstract

Purpose

The purpose of this paper is to determine the demographic characteristics and habits of craft beer consumers, as well as to identify the motivational factors for consumption.

Design/methodology/approach

Data were collected through questionnaires applied to 316 Brazilian craft beer consumers, and results were evaluated descriptively and by multivariate statistics.

Findings

The results of the survey revealed that there is a growing market segment with different buying habits and behaviors compared to traditional beer consumers. Demographically, it was found that these consumers are an attractive part of the beer market in terms of age, schooling and, more importantly, in terms of income, factors that indicate the probability of continued growth in the sector.

Research limitations/implications

The research was limited to craft beer consumers in the metropolitan region of Belo Horizonte/MG, Brazil.

Practical implications

The results obtained are important, as they can help new craft breweries, as well as help established industry managers to create strategies related to marketing four Ps in order to increase the consumption of its products, with competitive advantages to the market.

Originality/value

This research presents the characteristics of the consumers of craft beer, a market segment in evident rise in Brazil, about which there are few studies. In addition, it provides valuable information to both the new beverage manufacturers as well as to the already established entrepreneurs in the market so that they can increase the consumption of their products in a strategic way.

Details

British Food Journal, vol. 120 no. 2
Type: Research Article
ISSN: 0007-070X

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Book part
Publication date: 13 December 2021

Pavlina Jasovska

The revival of the modern craft beer industry has been attributed to people rediscovering their tastes for authentic and hand-crafted products from small, local and…

Abstract

The revival of the modern craft beer industry has been attributed to people rediscovering their tastes for authentic and hand-crafted products from small, local and independent firms – notable in many sectors ranging from food and alcohol products to textile and furniture. While one of the grounding principles of the craft beer sector has been serving the local community, some brewers started to explore growth opportunities beyond their national borders. Some did so by pure excitement and prestige of sending their beers overseas; others sensed that their domestic markets were becoming flooded by other craft beer brands or ‘craft-washed’ beers from large beer companies. This chapter explores two sides of this going-international story – its promise and perils. The promise of international growth represents the fulfilment of the entrepreneurial mission, the opportunity to collaborate on a global level or the result of positive country reputation. While the perils of crossborder venturing are formed by country-level differences (rules, values and culture), the author brings to the fore that the socially constructed and fluid definition of craft beer forms unique constraints. The author particularly explores how the sector’s cultural boundaries and competition for authenticity with large beer companies act as liabilities during internationalisation. This chapter contributes to the extant literature on firm internationalisation by focussing on a unique dataset of internationalising craft breweries from four small open economies (Australia, New Zealand, Denmark and the Czech Republic). In that sense, it also provides valuable insights to practitioners and the general public.

Details

Researching Craft Beer: Understanding Production, Community and Culture in An Evolving Sector
Type: Book
ISBN: 978-1-80043-185-0

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Book part
Publication date: 13 December 2021

Vaughan Ellis and James Richards

Brewing has experienced a considerable revival in recent years with the number of brewers in the UK being at its highest level since the 1930s (Cask Report, 2018). After…

Abstract

Brewing has experienced a considerable revival in recent years with the number of brewers in the UK being at its highest level since the 1930s (Cask Report, 2018). After decades of mergers and takeovers saw the emergence of a small number of global brewing conglomerates, many of the recently established breweries have spearheaded what has been referred to as a ‘craft beer revolution’. Typically, producing small batches of artisan brews and with small workforces, the output of craft brewers accounts for approximately 2.5% of all beer sales in the UK, but is the fastest growing sector of the drinks market. The growth of the industry mirrors that seen by artisan food producers and has led some to suggest an emerging preference for rejecting mass produced food and drink products.

Despite recognition of the craft beer industry’s emergence, growth and cultural significance, almost nothing is known about the individuals who started these new breweries, nor what their motivations for doing so were. Drawing upon 30 in-depth, semi-structured interviews with owner-brewers of craft breweries from across Scotland, this chapter presents findings examining owners’ backgrounds and motivations for starting their brewery. The findings show a range of motivations and expectations amongst the group of owners and provide a useful basis for making practical recommendations of how other aspiring craft beer ‘entrepreneurs’ can be best supported by the industry.

Details

Researching Craft Beer: Understanding Production, Community and Culture in An Evolving Sector
Type: Book
ISBN: 978-1-80043-185-0

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Article
Publication date: 3 September 2019

Vincenzo Alfeo, Aldo Todaro, Giuseppina Migliore, Valeria Borsellino and Emanuele Schimmenti

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the…

Abstract

Purpose

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the provision of raw materials.

Design/methodology/approach

A direct survey involving the overall population of 41 craft breweries operating in Sicily in 2016 was carried out. Then 29 questionnaires were collected for exploratory analysis. A hierarchical cluster analysis was also performed out to group companies by similar structural, productive and economic features.

Findings

The findings of the survey showed a Sicilian craft beer industry characterised by a substantial dependence on the import of malts hops and yeasts and the limited use of local raw materials among brewers. Furthermore, the characteristics of the processing plants and the sales channels appear to influence the diversification of the products and the turnover levels of the Sicilian craft beer producers.

Originality/value

This is the first study describing the craft brewing industry in Sicily. The findings contribute to enrich the knowledge on the organisational models applied in the craft beer industry. In particular, the findings could contribute to shed light on some critical issues about the provision of raw materials, suggesting possible paths for the successful development of the craft beer industry in the region.

Details

International Journal of Wine Business Research, vol. 32 no. 1
Type: Research Article
ISSN: 1751-1062

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Abstract

Details

Researching Craft Beer: Understanding Production, Community and Culture in An Evolving Sector
Type: Book
ISBN: 978-1-80043-185-0

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Article
Publication date: 8 February 2021

Harish C. Bahl, Jatinder N.D. Gupta and Kenneth G. Elzinga

This study aims to propose a framework for developing strategies for the supply chain of craft beer that can make the business efficient and profitable, and at the same…

Abstract

Purpose

This study aims to propose a framework for developing strategies for the supply chain of craft beer that can make the business efficient and profitable, and at the same time, generate sustainability benefits from reducing waste, conserving natural resources and reducing pollution.

Design/methodology/approach

Based on an extensive review of the literature of academic and industry publications, source material from craft brewers primarily situated in the USA and industry experience in craft brewing, the proposed framework describes strategies to establish sustainable craft beer supply chains.

Findings

The framework for craft beer supply chain consists of four categories that contribute to craft beer sustainability: ingredient procurement, recycling efforts, energy usage and distribution systems – some of these mimicking those used by macrobrewers. Each of the categories is further subdivided. Successful practices and examples are highlighted for each of the subcategories.

Research limitations/implications

This proposed framework was built upon current practices and available literature in the USA and focused on the environmental pillar of sustainability. Further, the proposed framework arises from the fact that current best practices in sustainability were available primarily from larger craft brewers, like Sierra Nevada and New Belgium.

Practical implications

By paying attention to operational changes in their supply chains, craft brewers can manage costs and improve their sustainability track record by reducing waste, conserving natural resources and improving upon their pollution footprint. Craft brewers can economize in the use of water, grains, hops and yeast by using practices discussed in this paper.

Originality/value

This is the first time that all aspects of supply chain and sustainability considerations in craft beer production are discussed in a comprehensive manner to propose a framework for analysis and enhancement of productivity and sustainability at the same time. The fact that the proposed framework can be used in future studies to empirically evaluate the utility of various sustainability strategies adds to the originality and value of this research.

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Article
Publication date: 14 June 2021

Alicia Rosales, M. Inmaculada Talaverano, Jesús Lozano, Carlos Sánchez-Vicente, Óscar Santamaría, Carlos García-Latorre and Sara Rodrigo

The aim of this paper is to determine chemical and sensory differences of between craft and industrial/or commercial beers. Beer market is nowadays booming and consumers…

Abstract

Purpose

The aim of this paper is to determine chemical and sensory differences of between craft and industrial/or commercial beers. Beer market is nowadays booming and consumers are in the search of new and healthier products.

Design/smethodology/approach

Here, commercial and craft beers were chemically analyzed and sensory evaluated. Chemical analysis included pH, bitterness, color, total polyphenol content and antioxidant activity. Likewise, 40 sensory descriptors were evaluated by trained panelists, including visual, olfactory and gustatory attributes. In addition, an electronic nose (e-nose) was tested to determine its suitability to discriminate beer type and/or style according to their volatiles profile.

Findings

Craft beers presented higher values of color, bitterness and antioxidant activity when compared to commercial beers. Sensory descriptors showed craft beers to be associated with the highest scores in visual, olfactory and gustatory descriptors. Data from e-nose explained 97% of the total variability of the volatile compounds in the analyzed beers, indicating the suitability of this device to discriminate beer types.

Originality/value

Results are of interest for design of marketing and selling techniques for craft brewery managers. In addition, cheap and easy-managing device as e-nose resulted in a valuable tool to monitoring beer quality.

Details

British Food Journal, vol. 123 no. 12
Type: Research Article
ISSN: 0007-070X

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