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Drink Beer for Science: An Experiment on Consumer Preferences for Local Craft Beer

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  • Hart, Jarrett

Abstract

The U.S. and global beer industries include a great many smaller-scale craft breweries supplying numerous differentiated products as well as a few macro-breweries with less diverse beer portfolios. The craft and macro segments of this industry have become quite distinct, with little substitutability between the two types of beer. Furthermore, since the early 2000s the craft segment has realized consistent growth whereas large breweries have seen a steady decline in sales. Macro-breweries have responded by acquiring smaller breweries to capture a share of the craft market. This study implements an experimental approach to measure consumers’ willingness to pay (WTP) for locally produced and independently owned beer. Regression analysis clearly indicates that consumers prefer locally owned and independently produced beer, and how much they are willing to pay for those attributes. (JEL Classifications: D12, L66)

Suggested Citation

  • Hart, Jarrett, 2018. "Drink Beer for Science: An Experiment on Consumer Preferences for Local Craft Beer," Journal of Wine Economics, Cambridge University Press, vol. 13(4), pages 429-441, November.
    • Handle: RePEc:cup:jwecon:v:13:y:2018:i:04:p:429-441_00
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    Citations

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    Cited by:

    1. Aaron J. Staples & Carson J. Reeling & Nicole J. Olynk Widmar & Jayson L. Lusk, 2020. "Consumer willingness to pay for sustainability attributes in beer: A choice experiment using eco‐labels," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 591-612, October.
    2. Lili Jantyik & Jeremiás Máté Balogh & Áron Török, 2021. "What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    3. Aaron J. Staples & Trey Malone & J. Robert Sirrine, 2021. "Hopping on the localness craze: What brewers want from state‐grown hops," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 463-473, March.
    4. Cole, Matthew T. & McCullough, Michael, 2023. "California beer price posting: An exploratory analysis of pricing along the supply chain," Journal of Wine Economics, Cambridge University Press, vol. 18(3), pages 205-225, August.
    5. Rossi, Jairus & Vassalos, Michael & Schmidt, Claudia & Lamie, R. David & Wade, Anne, 2023. "Consumer Perceptions of Craft Breweries in the American South," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(3), November.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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