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The Emergence of the National Brewing Oligopoly: Competition in the American Market, 1933–1958

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  • McGahan, A. M.

Abstract

In 1966 the Supreme Court expressed a desire to arrest consolidation of the brewing industry “in its incipiency.” This article argues that a national brewing oligopoly had already emerged by that date. In the 1930s and 1940s, restrained demand and regulatory pressure discouraged price and advertising competition and forced brewers to adopt cost-saving technologies. By the end of the Second World War, the largest brewers harbored unexploited economies of scale in processing. With relief from war shortages in the 1950s, large regional brewers expanded to pursue processing economies and secured their advantages with scale in distribution and advertising.

Suggested Citation

  • McGahan, A. M., 1991. "The Emergence of the National Brewing Oligopoly: Competition in the American Market, 1933–1958," Business History Review, Cambridge University Press, vol. 65(2), pages 229-284, July.
    • Handle: RePEc:cup:buhirw:v:65:y:1991:i:02:p:229-284_05
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    Cited by:

    1. Aseem Kaul & Brian Wu, 2016. "A capabilities-based perspective on target selection in acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1220-1239, July.
    2. William James Adams, 2006. "Markets: Beer in Germany and the United States," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 189-205, Winter.
    3. McGahan, A M, 1995. "Cooperation in Prices and Capacities: Trade Associations in Brewing after Repeal," Journal of Law and Economics, University of Chicago Press, vol. 38(2), pages 521-559, October.

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