IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v54y2022i5p554-567.html
   My bibliography  Save this article

Beer leaders against craft brewers: will Goliath end up defeating David in the US?

Author

Listed:
  • Martin Alfaro

Abstract

The last decade has witnessed an unprecedented rise of craft brewers in the American beer industry, with market leaders actively seeking to hamper their growth. In this paper, we set a model with craft brewers and macrobrewers, where leading firms engage in strategic moves to shape market outcomes. The framework results in leaders strategically targeting craft brewers to disadvantage them, and hence crowd them out. On the contrary, non-leading macrobrewers are neither targeted nor hurt. A calibration for the American beer industry in 2019 shows that, even though the emergence of craft brewers in the last years has hurt leaders, strategic moves have allowed them to mitigate its consequences. Specifically, these moves have respectively enabled AB InBev and Molson Coors to prevent further losses of market share of 5.1 and 2.8 points, implying that the craft brewers’ market share would have been even 7.9 points higher in absence of strategic moves.

Suggested Citation

  • Martin Alfaro, 2022. "Beer leaders against craft brewers: will Goliath end up defeating David in the US?," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 554-567, January.
    • Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:554-567
    DOI: 10.1080/00036846.2021.1967278
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2021.1967278
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2021.1967278?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Núria Arimany-Serrat & Andrey Felipe Sgorla, 2024. "Financial and ESG Analysis of the Beer Sector Pre- and Post-COVID-19 in Italy and Spain," Sustainability, MDPI, vol. 16(17), pages 1-17, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:54:y:2022:i:5:p:554-567. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.