Search results

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.

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.

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.

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.

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.

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.

The purpose of this paper is to highlight the specific types of coopetition between small and medium-sized craft breweries and related businesses, as well as its drivers and outcomes.

Qualitative research was carried out using in-depth, semi-structured interviews with 18 different small and medium-sized enterprises (SMEs) combined with site visits and secondary data analysis.

The results reveal that craft breweries are engaging in coopetition in several different ways. Mutual benefit, trust, commitment, and sympathy are the crucial drivers for coopetition; whereas innovation development, market reach and marketing, as well as firm growth represent the key shared outcomes of coopetition.

This study suffers from two main limitations, including the focus on coopetition of craft breweries operating in German-speaking countries only and the risk of subjectivity in analysis and interpretation due to the qualitative, explorative nature of the research.

The findings reveal insights into the uniqueness of SMEs – specifically craft brewers – regarding coopetition, which is currently of strong cooperative nature. This study completes prior coopetition knowledge by revealing the importance of coopetition for small, micro and resource-constrained firms operating in dynamic and innovative but traditional (here craft) industries; presenting the cooperation-based type of coopetition as a good competition strategy under fierce competition from large, more established and global business rivals; and identifying sympathy as an important coopetition driver.

They are as follows: to identify strategic growth opportunities for SMEs in the South African craft beer industry; to understand the complexities associated with operating a craft beer SME in the South African alcohol sector and analyse the SME’s strategic decision-making process that happens as a result; to understand the challenges and identify opportunities for entrepreneurship and growth in an emerging economy and niche segment; to develop a differentiation strategy for a small player in a competitive market; and to impart industry-specific knowledge and insight on the craft brewing industry.

The case is centred on the challenges that Hein Swart, managing director of Mitchell’s Brewery, is facing in sustaining business operations amid heavy regulations and increasing competition from existing craft breweries. In addition, there is the entry of a different type of competitor into the South African market that did not exist previously. The case narrative broadly presents several industry themes that interact with each other and create the existing complexities.

This case is targeted at postgraduate business school students with some work experience who want to build their critical thinking, business management and strategic decision-making skills such as Masters of Business Administration (MBA) and Executive MBA academic programmes, and also delegates on Executive Education programmes. The case is expected to be used as a case study for courses in entrepreneurship and strategic management; however, it can also be applied in strategic marketing courses.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 3: Entrepreneurship

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.

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.

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.

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.

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.

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.

In this chapter, the authors explore the entrepreneurial nature of craft brewing. The authors find growth in the microbrewery sector has been supported through a cooperative approach between competing artisanal small firms. This has helped build competitive advantage in resistance to the dominant market forces of large brewers. Data were gathered using semi-structured interviews with 12 craft brewers in the North East of Scotland. Analysed findings are used in the design of a conceptual model on the nature of collaboration in the craft beer sector. An artisanal scene is presented, where community benefit and continued development of the craft beer movement is prioritised, over commercial and strategic growth. The typically small firms in this area share resources and support each other in a drive to wean customers away from the large mainstream producers. The authors argue that the nature of the craft beer sector seeks to actively resist market dominance, not only through product quality and marketing, but also in the entrepreneurial behaviours enacted to sustain the movement. The findings suggest a co-existence of both collaboration and competition in the strategic decisions of craft brewers. The focus is on the locally embedded connections these firms develop in the maintenance of their craft roots, with a range of complex interconnected factors linking brewer, community, and the broader industry.

In recent years, the craft beer (CB) industry has gained impetus and has experienced significant growth in scientific publications. This study aims to present a systematic review of the literature on CB in areas related to economic and business sciences.

Based on the data from Scopus, Web of Science and a set of articles not indexed to these databases until June 2021, a total of 132 articles were included for analysis, using bibliometric and content analysis techniques.

The study allowed us to identify that CB has four main clusters/themes of research, namely, CB industry and market, marketing and branding, consumer behavior and sustainability. Detailed information on the clusters is provided. In addition, the results showed that publications addressing CB have grown significantly from 2015 onwards and are dispersed across many journals, with none assuming a clear leadership. Quantitative approaches account for more than half of publications.

This study is a useful guide for academics intending to develop studies with CB. It provides a framework to structure future research by identifying existing literature clusters and proposes several research propositions.

The findings from this study are useful for CB companies to get an overview of the main issues affecting the CB industry and market to be able to adapt their strategies and stay aligned with market tendencies in the four main clusters identified.

This is the first systematic review of CB. Therefore, it provides a significant contribution to frame and strengthening the literature on CB and serves as a reference for future research. Based on the content analysis and cluster identification, the findings portray the status of current research. Accordingly, a set of research opportunities are offered.

This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion to increase craft beer sales and contribute to faster growth.

This is a conjoint analysis with a selection of attributes for new or renewed products, marginal disposition to pay for particular characteristics through brand-specific choice-based design, and market simulation.

This paper clearly demonstrates consumers’ preferences and willingness to pay in Mexico, with a cutting-edge market research technique combining the prioritization of preferred craft beer characteristics, and the price consumers are willing to pay for such product characteristics.

The study's sample size of 501 responses is relatively small compared to the total number of craft beer consumers in Mexico. To enhance the validity and reliability of the findings, future studies should aim to obtain larger samples and compare their results with those of this study.

This study has important implications for craft beer producers, allowing them to develop targeted craft beers with appealing attributes for Mexican consumers, such as color, aroma intensity, alcohol degree intensity, bitterness, foam level and price.

This study's market forecasting simulation technique is based on assumptions of consumer behavior and market dynamics. Although relevant variables were considered, unanticipated external factors or market changes could impact the forecasts' accuracy. This will allow for a more comprehensive understanding of craft beer consumer preferences in different markets and enhance the reliability of forecasting techniques.

This paper informs craft beer producers by providing valuable knowledge on customers’ preferences and willingness to pay to enhance craft beer companies’ product development processes.

The purpose of this paper is to examine key areas related to the craft brewing industry from the perspective of operators of micro and small craft breweries, and propose a framework based on the resourced-based theory of the firm and the theory of innovation. The areas investigated include participants’ perceived strengths of their craft brewery, involvement in innovative practices, opportunities for the craft brewing firm, and potential differences related to these areas based on the demographic characteristics of participants and their breweries.

Given its growing significance and economic contribution, the US craft brewery industry was chosen for this study. An online questionnaire was designed to gather data from craft brewery operators across the nation.

Product and service quality, knowledge, reputation, and expertise were revealed as key strengths, while creating new recipes and using social media tools were the most considered ways of innovating. Furthermore, opportunities were perceived through craft beer tourism, increased consumption, and quality improvements. Statistically significant differences emerged, particularly based on production levels, staff numbers, and involvement/no involvement in exports. Various associations between the findings and the adopted theoretical frameworks were revealed.

In terms of originality, the proposed refinement based on the adopted theoretical frameworks and findings facilitates understanding of the significance of resources and innovation, particularly for firms operating in a growing industry. Regarding value, the findings have important implications for the industry, for instance, in the marketing of craft brewing, as well as in the development of new craft brewing products.