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Regulation and Restructuring in the Craft Brewing Industry

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  • Gavin Wood
  • Declan Martin

Abstract

This paper investigates the relationship between regulatory settings and differences in the development of craft brewing industries across regions. We argue that changes in consumption‐focused regulations have impacted production in the craft brewing industry. Drawing on a comparative case study of two Australian states, we also demonstrate how growth and development vary across jurisdictions with different regulatory approaches to the distribution and sale of alcohol. Specifically, we find three dimensions of liquor licensing strongly influence industry outcomes: (1) the timing of regulatory interventions; (2) their flexibility regarding the sale, distribution and consumption of alcohol; and (3) their intersection with national competition policy. Early licensing reforms in Victoria during the 1980s catalysed new independent brewery formation by facilitating the emergence of new types of licenced premises to compete with hotels. This intervention lowered barriers to entry for craft brewers. In the 2010s, more flexible producers' licences were introduced that allowed on‐site sale and consumption of beer. Currently, intersecting liquor and competition policy settings are reshaping the craft brewing industry by enabling consolidation of liquor retailing. Our research offers an institutional interpretation of the rapid growth in craft brewing that broadens a literature primarily focussed on organisational and cultural factors.

Suggested Citation

  • Gavin Wood & Declan Martin, 2025. "Regulation and Restructuring in the Craft Brewing Industry," Growth and Change, Wiley Blackwell, vol. 56(1), March.
    • Handle: RePEc:bla:growch:v:56:y:2025:i:1:n:e70023
    DOI: 10.1111/grow.70023
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