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Did the MillerCoors joint venture strengthen the craft beer revolution?

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  • Azar, José
  • Barriola, Xabier

Abstract

We study how the MillerCoors joint venture affected craft brewers in the United States. We use scanner data to track the entry, assortment, and market share of artisanal and commercial brewers over a 4-year period after the merger. Using an instrumental variables strategy that uses only variation in concentration generated by the merger, we find that, in the average market, the merger led to an 11.59% increase in the number of craft brewers. The number of products per craft brewer did not increase. Most of the new entrants were small, and thus the market share of craft brewers experienced only a small (though statistically significant) increase. This entry of new firms may have been facilitated by the increase in prices by incumbent commercial producers following the merger.

Suggested Citation

  • Azar, José & Barriola, Xabier, 2022. "Did the MillerCoors joint venture strengthen the craft beer revolution?," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:indorg:v:85:y:2022:i:c:s0167718722000650
    DOI: 10.1016/j.ijindorg.2022.102890
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    References listed on IDEAS

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    More about this item

    Keywords

    Mergers; Product policies; Competitive strategies;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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