Learning by Brewing: Homebrewing Legalization and the Brewing Industry

McCullough, Michael; Berning, Joshua; Hanson, Jason L.

doi:10.1111/coep.12394

Cited by 11 publications

(7 citation statements)

References 23 publications

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“…In conclusion, the government's aim to support small scale beer production has been successful because it helped the survival of the Hungarian microbreweries. In general, Hungarian results also underline the importance of supportive governmental attitude, because similar to other countries (e.g., in the USA [5]), microbreweries are highly dependent on regulation, and on taxation in particular.…”

Section: Discussionmentioning

confidence: 66%

“…The craft beer revolution began in the United States, after the strict alcohol ban and, since 1978, the Federal Law has allowed home brewing. McCullough et al [5] examined the relationship between home brewing legislation and the beer industry in the United States and found that the new legislation significantly impacted the industry's structure and growth. Previous studies suggested that craft beers have spread around the world for very different reasons.…”

Section: Introduction 1introductionmentioning

confidence: 99%

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What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries

2021

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In terms of absolute alcohol consumption and total quantity consumed, beer is the most consumed alcoholic beverage in Hungary. The Hungarian beer industry is highly concentrated, the three largest, foreign-owned companies ruled the market for almost 90% of total turnover in 2009–2017. The study investigates the factors influencing the Hungarian beer industry’s economic performance, special attention given to the microbreweries. The analysis applied panel-data linear models for the period of 2009–2017. The financial performance of breweries is represented by companies’ turnover, Earnings Before Interest and Taxes (EBIT) and profit along with explanatory variables of the age of brewery, Social Media activity, geographical location, direct sales, and impact of tax reduction. Breweries with direct sales channels reached significantly higher sales, EBIT and profit. Breweries situated in or close to the capital are the most profitable due to the higher demand for high-quality beer, in contrast, the distance from the capital had a negative impact on the firms’ performance. The Social Media activity–often used as the only promotion channel for the microbrewery–positively impacts the brewery’s profitability. Finally, tax reduction for small breweries introduced in 2012 had the most significant positive influence on the industry.

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Section: Discussionmentioning

confidence: 66%

Section: Introduction 1introductionmentioning

confidence: 99%

What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries

2021

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“…On this topic, studies by, for example, Cabras and Higgins (2016), Williams (2017), and Cappellano and Spisto (2019), highlight how policy changes have been made to support entrepreneurs in the craft beer sector, thus enabling further growth in the sector. Examples of this include removing restrictions and legalising home brewing in the US in 1979, contributing to the evolving of a viable business sector (Mccullough et al, 2018;Nilsson et al, 2018). Cappellano and Spisto (2019) illustrate how a political climate friendly to the craft beer industry has triggered the US movement through tax incentives and even grants in San Diego, which has allowed the number of breweries to grow.…”

Section: The Evolution Of the Craft Beer Sectormentioning

confidence: 99%

The Swedish alcohol monopoly: A bottleneck for microbrewers in Sweden?

Skoglund

John

2021

Cogent Social Sciences

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The evolution of the craft beer sector has been gaining traction around the world since the 1980s, developing from factors such as an increased demand for alternative and locally distinct flavours in beer, increased interest in pairing food with the right type of beer, and increased income levels. Meanwhile, the economic and political contexts for establishing and running craft breweries differ between cities, regions, and nations. This study takes its point of departure from the producer perspective of the craft beer sector in the alcohol monopoly of Sweden, where the interest in craft breweries has also developed quickly over the last decades. The main purpose of the study is to contribute to the understanding of producer perspectives on operating in an alcohol monopoly, and how this effects development opportunities. The study has an explorative, mixed methods approach and is based on a survey encompassing all Swedish craft brewers as well as qualitative data from northern Sweden, including interviews with craft beer producers, site visits, and document analysis. The conclusions provide a complex picture of the Swedish alcohol monopoly and its impact on the craft brewers, and hence the development of the craft beer sector. However, the critical dimensions are more pronounced among the producers, suggesting that the Swedish organisation favours large-scale breweries, creates uncertain market conditions, leads to quick and unexpected decisions, and creates logistical difficulties. From an international comparative dimension, this indicates that the craft beer sector in Sweden could benefit from and grow even stronger with modifications to the market conditions according to the situation in other geographical contexts.

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“…The beer market changed significantly in 1979 when changes in federal laws freed states to allow for homebrewing [13]. Over the next few decades, many of those hobbyists set out to commercialize their homebrews, planting the seeds of a burgeoning craft beer market [16].…”

Section: Introductionmentioning

confidence: 99%

Craft Beer as a Means of Economic Development: An Economic Impact Analysis of the Michigan Value Chain

et al. 2019

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While many studies have suggested the beer value chain might be a vehicle for economic growth, few have estimated the economic impacts of craft beer to a geographic region. As such, this study uses modified input/output analysis to identify the economic contributions of instate beer production to the Michigan economy. We find that the beer value chain generated nearly $500 million in Gross State Product in 2016, contributing nearly $1 billion as well as 9738 jobs in total aggregate economic contributions. The results suggest that state governments might generate economic growth by creating a business climate that is conducive to the growth of the instate beer value chain.

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Learning by Brewing: Homebrewing Legalization and the Brewing Industry

Cited by 11 publications

References 23 publications

What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries

What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries

The Swedish alcohol monopoly: A bottleneck for microbrewers in Sweden?

Craft Beer as a Means of Economic Development: An Economic Impact Analysis of the Michigan Value Chain

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