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1 – 10 of over 8000The 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.
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Edgar Nave, Paulo Duarte, Ricardo Gouveia Rodrigues, Arminda Paço, Helena Alves and Tiago Oliveira
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Originality/value
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.
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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 provision of raw…
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.
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Geoff Pugh, David Tyrrall and John Wyld
Both the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA) argue that barriers to market access in the UK brewing industry disadvantage small brewers…
Abstract
Both the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA) argue that barriers to market access in the UK brewing industry disadvantage small brewers. They have been actively campaigning for a number of years for a tax concession (progressive beer duty or PBD) to alleviate the situation of small brewers. This paper argues that the disadvantages faced by small brewers are due to a complex monopsony in the beer industry, where the power of the distribution segment of the value chain is paramount. It outlines a model of the structure of the UK beer industry, and undertakes two types of empirical analysis to test the potential impact of PBD on the small brewery sector. The paper finds that control over distribution is the key to profitability and survival in the beer industry, and that small brewers with such control are most likely to benefit from PBD. The findings, however, also have relevance to the position of any small business facing a powerful distribution segment. Finally, for the issue of policy development, the paper indicates that the potential outcomes of a policy change may not be entirely those intended.
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Jesper Edman and Christina L. Ahmadjian
We examine the construction of “empty categories” – that is, categories created prior to the existence of producers and consumers – and their implications for industry emergence…
Abstract
We examine the construction of “empty categories” – that is, categories created prior to the existence of producers and consumers – and their implications for industry emergence. Drawing on the case of the ji-biru category among Japanese microbreweries, we exemplify how external actors – including governments, the media, consultants, and other entities – frequently create empty categories that are “legitimate yet not legitimated” (Vergne & Wry, 2014). We show how such empty categories generate lower entry barriers, resulting in higher founding rates and significant innovation. We highlight how empty categories impede evolutionary forces by inhibiting shared understandings of what constitutes a legitimate category member.
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Jose Manuel Fernandez and Stephan F. Gohmann
Most studies of entrepreneurial failure do not have good measures of consumers' perceptions of product quality. As a result, perceived quality in entrepreneurial success is often…
Abstract
Purpose
Most studies of entrepreneurial failure do not have good measures of consumers' perceptions of product quality. As a result, perceived quality in entrepreneurial success is often omitted. The craft brewery industry is comprised of small entrepreneurial firms selling an experience good making it an ideal study setting. Using online beer reviews, the authors examine how perceptions of beer quality and the size of brewery production influence entrepreneurial success of microbreweries and brewpubs.
Design/methodology/approach
Using data from the Brewers Association and over 12 million reviews from beeradvocate.com between 2002 and 2016, the authors examine the relationship between perceived product quality to firm survival. Perceived quality is measured using online beer reviews. The authors expect larger microbreweries will survive longer as will breweries with higher perceived quality. The authors use a conditional log-log hazard model to estimate survival for microbreweries and brewpubs.
Findings
A one standard deviation increase in the beer ratings reduces the probability of exit by 26% for a microbrewery and 19% for brewpubs. The authors find that larger microbreweries have a lower hazard of exiting.
Originality/value
Entrepreneurs in the brewing industry start as home brewers before beginning commercial enterprises. Scaling up production is difficult. The initial size of their brewery is an important determinant of their success. Likewise, the perception of the quality of their beer as measured by consumer ratings gives a good market indication about future survival. This research is one of the few studies to examine the influence of perceived quality on firm survival in a growing industry.
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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 decades…
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.
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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…
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.
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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…
Abstract
Learning outcomes
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.
Case overview/synopsis
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.
Complexity academic level
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.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 3: Entrepreneurship
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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…
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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