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Article
Publication date: 9 April 2018

Abel Duarte Alonso, Nikolaos Sakellarios, Nevil Alexander and Seamus O’Brien

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…

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Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

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 time…

2118

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.

Book part
Publication date: 13 December 2021

James Cunningham and Simon S. Fraser

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…

Abstract

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.

Details

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

Keywords

Article
Publication date: 10 December 2021

Erol Sozen, Martin O’Neill and Imran Rahman

Craft brewers in the USA have long sought to improve the efficiency of beer production to achieve their primary aims of improving the product and increasing profit margins. More…

Abstract

Purpose

Craft brewers in the USA have long sought to improve the efficiency of beer production to achieve their primary aims of improving the product and increasing profit margins. More recently, however, there has been a move toward the adoption of more sustainable production techniques aimed at reducing the environmental impact of the brewing process itself. This study aims to investigate the factors that drive engagement with environmental practices among US craft brewery owners.

Design/methodology/approach

The present study uses an exploratory sequential mixed methods design where, first, a qualitative thematic analysis was conducted via semi-structured in-depth interviews with 31 craft brewers from across the USA. Second, a quantitative online survey was distributed to craft brewers nationwide, and 237 valid responses were collected to rank the preidentified motivational factors.

Findings

The findings of the present study are in alignment with those of previous studies conducted in a broader business context. This study contributes to an understanding of the factors driving environmental engagement, as well as their relative significance to craft brewers, which is critical to increasing the ability to target financial and physical resources and make the brewing process more sustainable and environmentally friendly.

Research limitations/implications

The study has theoretical and practical implications for craft breweries, policymakers and academics. From the perspective of policy, there is limited work exploring this topic in the specific context of craft brewing. This study, thus, contributes to an understanding of the factors driving environmental engagement, as well as their relative significance to craft brewers – which is critical to increasing the ability to target resources, both financial and material, and make the brewing process more sustainable and environmentally friendly.

Originality/value

Identifying exactly what it is that guides the decision-making processes of craft brewery owners, in regard to the adoption of new or improved environmental practices, has several advantages. First, it serves as a guide to help breweries adapt to the evolving needs of a progressive society; second, it assists government and policymakers in formulating effective and relevant legislation; and third, it helps consumers to better understand their role and position in business processes and decision-making.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 19 February 2018

Abel Duarte Alonso, Nikolaos Sakellarios, Nevil Alexander and Seamus O’Brien

The purpose of this paper is to investigate the extent and significance of involvement of craft brewery operators in their community through the lens of the stakeholder theory…

Abstract

Purpose

The purpose of this paper is to investigate the extent and significance of involvement of craft brewery operators in their community through the lens of the stakeholder theory (ST). In addition, differences between forms of involvement and demographic characteristics of operators and breweries are examined.

Design/methodology/approach

As many as 218 operators of predominantly micro-craft breweries across the USA participated in an online questionnaire designed to gather their perceptions.

Findings

While paying taxes was participants’ main perceived form of contribution, providing an artisan-made product, the significance of the craft brewery as a community “hub”, and that of increasing the number of leisure alternatives also emerged. A further 52.8 per cent of participants indicated contributing US$100,000 or more to the community annually. Statistically significant differences were revealed, for instance, based on craft breweries’ production volume, and the level of financial contribution. Various associations between operators’ perceived contributions and the ST theses were established in regard to cooperative interests (descriptive), stakeholder management (instrumental), and moral principles (normative).

Originality/value

First, by examining corporate social responsibility (CSR) in the craft brewing industry and among predominantly smaller firms, the study addresses two under-researched areas. Second, a refinement of the ST in the context of the craft brewing industry is proposed, highlighting the links between ST-based theses and the findings. Third, the study contributes to three different types of literature: micro and small business, craft brewing entrepreneurship, and CSR.

Details

Journal of Strategy and Management, vol. 11 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Book part
Publication date: 13 December 2021

Perttu Salovaara

A popular narrative connects craft breweries with revitalisation of cities, neighbourhoods or communities, particularly in locations that have suffered from deindustrialisation…

Abstract

A popular narrative connects craft breweries with revitalisation of cities, neighbourhoods or communities, particularly in locations that have suffered from deindustrialisation. Research, too, associates craft breweries with job creation, development of local economies, and with entrepreneurship, crafts production, and do-it-yourself culture. Human geographers link craft breweries with contemporary place-making and neolocalism. Neolocalism, a revived appreciation of local ingredients and production, has become both a societal phenomenon and a business proposition. Based on key indicators for neolocalism, this chapter evaluates to what degree the narrative linking craft breweries with revitalisation, neolocalism and community-building holds for seven studied Finnish craft breweries. The cases presented herein offer a more nuanced view of the phenomenon and open the narrative to variations and richer interpretations. The chapter takes a critical view on narratives that enable, maintain and create societal phenomena such as the craft beer revolution, and it adds to the growing literature on the context and consequences of craft breweries.

Details

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

Keywords

Article
Publication date: 15 March 2018

Sascha Kraus, Patrycja Klimas, Johanna Gast and Tobias Stephan

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…

2309

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Originality/value

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.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 25 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

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 a means…

14240

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

Keywords

Article
Publication date: 11 August 2023

Timothy I. Ramjaun, Madeleine Pullman, Maneesh Kumar and Vasco Sanchez Rodrigues

This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through…

Abstract

Purpose

This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through increased efficiencies, bargaining power and economies of scale.

Design/methodology/approach

A case study approach is applied to a network of breweries that are regionally clustered. Interview data from producers, suppliers and industry experts is inductively interpreted to understand the viability, organisational impact and benefits/limitations of joint procurement activities.

Findings

The craft brewing industry follows a market place strategy of differentiation to achieve competitive advantage. This has supply chain implications that promote raw material diversity, which is in conflict with standardisation – a necessary factor for collective buying. Competition impacts information sharing and governance mechanism, while the structural factors of size asymmetry along and across the supply chain influence returns. These issues impact the potential economic benefits of collaborative procurement.

Research limitations/implications

The research propositions have been developed in a specific industry but are generalisable to other companies with a differentiation strategy, especially in the consumer packaged goods sector.

Practical implications

Enabling conditions and constraints are captured in a framework and capability matrix, which can be used by practitioners to assess industry and product feasibility for collaborative procurement.

Originality/value

Previous studies of collaborative procurement have been in the public sector amongst large organisations. This work focusses on coopetition in the context of small businesses to identify the viability and cost-benefit of this strategy.

Details

International Journal of Operations & Production Management, vol. 44 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

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 independent…

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

Keywords

1 – 10 of 674