No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Beer sales in grocery and convenience stores: a glass half-full for craft brewers?
Regional Studies
Abstract
We study how regulatory changes influence the market dynamics underlying business location decisions by investigating how a 2019 law introducing full-strength beer into grocery and convenience stores in the US state of Colorado impacted craft brewers a year after implementation. A state-wide survey reveals that the new channels brought limited change to how craft breweries sell beer. Access to grocery stores advantages larger craft breweries, while smaller breweries face significant logistical barriers. Analysis of mobile phone geolocation data reveals a modest reduction in visitation to liquor stores. Results suggest that the policy change will not impair Colorado’s ability to draw craft beer investment.
... We also found that grocery stores were the most popular beer retailers, which has meaningful ramifications for small craft breweries. Major grocery retailers tend to dedicate limited shelf space to beer and prefer to stock widely recognized brands because they rely on high product turnover (Palardy et al. 2023). This can make getting beer onto grocery shelves a challenge for newer, less well-known breweries. ...
Florida’s craft beer industry has undergone explosive growth in the past decade, expanding sixfold from just 66 to 396 breweries, with an estimated economic impact of over $4 billion dollars in 2022. The craft beer sector is primarily small businesses that may lack large domestic breweries' resources and expertise to conduct in-house market research. Trade groups for craft breweries publish market research at the national level but do not often delve into state-specific nuances. This publication provides Florida breweries with data-driven marketing information on Florida beer consumers' purchase frequency, monthly beer expenditure, and preferred places to buy and drink beer. It includes a bulleted list of key consumer insights for craft breweries.
... Next, we focus on differences in the treatment effects for chain and standalone liquor stores because the economic importance of sole proprietor liquor stores for community development is often cited in policy discussions (e.g., Palardy et al., 2023). We identified chain liquor stores as those companies with two or more locations. ...
This study examines the impact of repealing Sunday blue laws on alcohol sales and retail competition, focusing on Connecticut’s 2012 policy change allowing Sunday beer sales in grocery stores. Using nationwide data from 2004 to 2021, we find a short-term increase in beer sales post-policy change, but no significant long-term economic effects on grocery and liquor stores. Our analysis also shows similar treatment effects for chain and standalone liquor retailers, suggesting limited lasting implications for the liquor retail industry’s performance and conduct after Sunday sale restrictions were lifted.
Using GPS location data from customers’ mobile devices, we develop measures of customer shopping behavior intended to capture the likelihood that customers will shop again in the future, and we examine their associations with firms’ financial decisions and outcomes. We measure customers’ propensity to return using the frequency, distance, duration, and timing of their past visits to a firm’s retail locations. We find a positive association between customers’ propensity to return and the persistence of the firm’s revenues and earnings. We also find a positive association between customers’ propensity to return and the efficiency of investing and operating decisions among firms likely to incorporate customer data into their internal information systems. Our results illustrate conditions under which revenues and earnings are sustainable and when managerial decisions are consistent with insights provided by customer information.
Data Availability: Data are available from the public sources cited in the text.
JEL Classifications: M31; M41; G14; G31.
We examine the impact of laws that allow breweries to bypass distributors. We construct a model of heterogeneous firms where some states require pairing with distributors who charge fixed and marginal costs in return for additional market share. The model predicts that states without such requirements have higher output and employment due to greater entry and firm‐level production. To test this model, we exploit the adoption of self‐distribution laws from 2008 to 2019. We find that states that do not require a distributor have higher brewery output and employment, and that this is primarily driven by a greater entry of breweries.
The craft brewing industry is in a constant state of evolution. Over recent years, the craft beer sector has experienced rapid growth, and this trajectory is expected to persist. Microbreweries, in contrast to traditional industrial beer production, actively encourage the exploration of diverse beer styles, embrace the trend of championing local and regional ingredients, and maintain a strong focus on quality while resurrecting historic beer varieties. An analysis of interviews conducted with microbrewers in Slovenia featured in Slovenian daily newspapers revealed recurring categories that shed light on the drivers behind this flourishing artisanry. These findings are further discussed in the context of the existing scientific literature. Notably, a range of factors were identified as contributing to the growth of this sector. Among these factors, the desire for distinctive, authentic, locally rooted, and non-standardized flavours, styles, and ingredients, often accompanied by an inspiring and compelling brewer’s or creator’s narrative, played a pivotal role in attracting consumers. These results can inform microbrewers production, distribution, marketing, and pricing strategies. They are also relevant to the country policymakers supporting local hops production and local brewing.
In the tradition of Christaller's central place theory, policy and scientific studies delineate retail markets around predefined central places. Evolutions on the demand and supply side have changed where consumers shop and where stores are located. We use spatial network analysis techniques (Leiden detection algorithm) that allow for a bottom-up approach. The data were sourced from a questionnaire on shopping in Flanders (Belgium). The results show that community detection is able to deal with the geographical complexity of retail. Communities for daily goods shopping remain small, for recurring goods have become very large, even bigger than those for exceptional goods.
Purpose
Little research on the influence of external factors, such as weather and holiday periods, on retail sales on alcoholic beverages is available. This study aims to investigate how weekly retail sales of different alcoholic beverages vary in association with daily maximum temperatures and annual federal holidays across selected US counties in the years 2013 to 2015. The research provides information, which can contribute to better sales forecasts.
Design/methodology/approach
Secondary data of weekly retail sales (volume) of alcoholic beverages from 37,346 stores in 651 counties in the USA are analysed. The data cover on average 21% of all existing US counties and 12% of the total US off-trade retail sales of alcoholic beverages in the period studied (Euromonitor, 2017). Additional data of federal holidays and meteorological data are collated for each county in the sample. Seasonal autoregressive integrated moving average models with exogenous regressors (SARIMAX) are applied to develop forecasting models and to investigate possible relationships and effects.
Findings
The results indicate that off-trade retail sales of beer, liquor, red and white wine are temperature sensitive throughout the year, while contrary to expectations rosé, sparkling and other wines are not. Sales sensitivities to temperature also differ by geography. In the warmest regions, liquor and white wine sales do not respond to temperature changes, as opposed to the coolest regions, where they are responsive. Public holidays, particularly Easter, Thanksgiving, Christmas and New Year holidays, represent a constant influencing factor on short-term sales increases for all investigated alcoholic beverage categories.
Originality/value
This is the first large-scale study of weather and holiday-related sales variations over time, across geographies and different alcoholic beverage categories. Seasonal and non-seasonal short-term sales variations are important for retailers and manufacturers alike. Accounting for expected changes in demand accommodates efficiencies along the supply chain and has implications for retail management, as well as adjusting marketing efforts in competing categories.
While many studies have suggested the beer value chain might be a vehicle for economic growth, few have estimated the economic impacts of craft beer to a geographic region. As such, this study uses modified input/output analysis to identify the economic contributions of instate beer production to the Michigan economy. We find that the beer value chain generated nearly 1 billion as well as 9738 jobs in total aggregate economic contributions. The results suggest that state governments might generate economic growth by creating a business climate that is conducive to the growth of the instate beer value chain.
Interrupted time series analysis differs from most other intervention study designs in that it involves a before-after comparison within a single population, rather than a comparison with a control group. This has the advantage that selection bias and confounding due to between-group differences are limited. However, the basic interrupted time series design cannot exclude confounding due to co-interventions or other events occurring around the time of the intervention. One approach to minimizse potential confounding from such simultaneous events is to add a control series so that there is both a before-after comparison and an intervention-control group comparison. A range of different types of controls can be used with interrupted time series designs, each of which has associated strengths and limitations. Researchers undertaking controlled interrupted time series studies should carefully consider a priori what confounding events may exist and whether different controls can exclude these or if they could introduce new sources of bias to the study. A prudent approach to the design, analysis and interpretation of controlled interrupted time series studies is required to ensure that valid information on the effectiveness of health interventions can be ascertained.
Generic Bordeaux red wine (basic claret) can be regarded as being similar to an agricultural commodity. Production volumes are substantial, they are traded at high frequency and the quality of the product is relatively homogeneous. Unlike other commodities and the top-end wines (which represent only 3% of the traded volume), there is no futures market for generic Bordeaux wine. Reliable forecasts of prices can to large extent replace this information deficiency and improve the functioning of the market. We use state space methods with monthly data to obtain a univariate forecasting model for the average price. The estimates highlight the stochastic trend and the seasonality present in the evolution of the price over the period 1999 to 2016. The model predicts the path of wine prices out of sample reasonably well, suggesting that this approach is useful for making reasonably accurate forecasts of future price movements.
Objectives:
To examine the association between Colorado's legalization of recreational cannabis use and opioid-related deaths.
Methods:
We used an interrupted time-series design (2000-2015) to compare changes in level and slope of monthly opioid-related deaths before and after Colorado stores began selling recreational cannabis. We also describe the percent change in opioid-related deaths by comparing the unadjusted model-smoothed number of deaths at the end of follow-up with the number of deaths just prior to legalization.
Results:
Colorado's legalization of recreational cannabis sales and use resulted in a 0.7 deaths per month (b = -0.68; 95% confidence interval = -1.34, -0.03) reduction in opioid-related deaths. This reduction represents a reversal of the upward trend in opioid-related deaths in Colorado.
Conclusions:
Legalization of cannabis in Colorado was associated with short-term reductions in opioid-related deaths. As additional data become available, research should replicate these analyses in other states with legal recreational cannabis.
This article introduces the ITSA command, which performs interrupted time series analysis for single and multiple group comparisons. In an interrupted time series analysis, an outcome variable is observed over multiple, equally spaced time periods before and after the introduction of an intervention which is expected to interrupt its level and/or trend. The ITSA command estimates the effect of an intervention on an outcome variable for either a single treatment group or when compared with one or more control groups. Additionally, its options allow the user
to control for autocorrelated disturbances and to estimate treatment effects over multiple periods.
Understanding the ways in which consumers’ involvement levels influence how they use different cues to make purchase decisions has been a topic of research for several decades. This study, which provides a specific extension to the more general study by Lockshin et al. [Lockshin, L., Wade, J., d’Hauteville, F., & Perrouty, J. P. (2006). Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food Quality and Preference, 17(3–4) 166–178] examines the moderating effects of wine product involvement and wine purchase involvement on wine purchase decisions. A sample of 187 New Zealand regular wine consumers participated in a conjoint experiment using the variety New Zealand Sauvignon Blanc. The product stimuli were defined by three attributes: (i) presence/absence of region of origin information, (ii) price level, and (iii) presence/absence of a price discount. Purchase intention ratings, which were analysed using multiple regression and non-parametric bootstraps, suggested that the cue pertaining to information about region of origin was more important for consumers high in product involvement and purchase involvement than for consumers with low levels of involvement. There was also some evidence to suggest that consumers who are high in product involvement place less importance on price and, that consumers who are low in purchase involvement place greater importance on price discounts.
VAN LEEUWEN E. S. and RIETVELD P. Spatial consumer behaviour in small and medium-sized towns, Regional Studies. Small and medium-sized towns are often recognized as important components of the rural economy. This paper focuses on the current function of small and medium-sized towns in providing retail services to local households in five European countries. Furthermore, it analyses the spatial shopping behaviour of these households. It appears that towns are still important places for shopping: more than half of the purchases of households living in town or the direct hinterland are bought in town.
McGranahan D. and Wojan T. (2007) Recasting the creative class to examine growth processes in rural and urban counties, Regional Studies 41, 1–20. Richard Florida's Rise of the Creative Class (2002) makes a compelling argument that regional development now depends on novel combinations of knowledge and ideas, that certain occupations specialize in this task, that people in these occupations are drawn to areas providing a high quality of life, and thus the essential development strategy is to create an environment that attracts and retains these workers. The present analysis of recent rural development in rural US counties, which focuses on natural amenities as quality of life indicators, supports the creative class thesis. A repetition for urban counties also shows a strong relationship between creative class presence and growth, although natural amenities play a smaller role. However, the results depend on a recast creative class measure, which excludes from the original Florida measure many occupations with low creativity requirements and those involved primarily in economic reproduction. The measure conforms more closely to the concept of creative class and proves to be more highly associated with regional development than the original Florida measure.
We find that social distancing is affected by the policies set in neighboring counties, even after controlling for confirmed COVID cases and weather. A stay-at-home order in a neighboring county reduces social distancing by more than half as much as implementing an order in that county. This implies that, to increase social distancing in hard-hit counties, stay-at-home orders need to be implemented in a regionally or federally coordinated response. We also find that estimates of the efficacy of stay-at-home orders that do not control for policies in neighboring counties overstate the effect of these orders by about 50%.
A recent study in the Journal of Wine Economics presented forecasts of future alcohol consumption derived using the ARIMA (Box–Jenkins) method. Alcohol consumption forecasts can be developed using many different methodologies. In this Note we highlight the value of using multiple methods to develop alcohol consumption forecasts, and demonstrate the capability of the R software platform as a general forecasting tool. (JEL Classifications: D12, C53)
Objective:
To estimate the association between the release of the Netflix series 13 Reasons Why and suicide rates in the United States.
Method:
Using segmented quasi-Poisson regression and Holt-Winters forecasting models, we assessed monthly rates of suicide among individuals aged 10 to 64 years grouped into 3 age categories (10-17, 18-29, and 30-64 years) between January 1, 2013, and December 31, 2017, before and after the release of 13 Reasons Why on March 31, 2017. We also assessed the impact of the show's release on a control outcome, homicide deaths.
Results:
After accounting for seasonal effects and an underlying increasing trend in monthly suicide rates, the overall suicide rate among 10- to 17-year-olds increased significantly in the month immediately following the release of 13 Reasons Why (incidence rate ratio [IRR], 1.29; 95% CI, 1.09-1.53); Holt-Winters forecasting revealed elevated observed suicide rates in the month after release and in two subsequent months, relative to corresponding forecasted rates. Contrary to expectations, these associations were restricted to boys. Among 18- to 29-year-olds and 30- to 64-year-olds, we found no significant change in level or trend of suicide after the show's release, both overall and by sex. The show's release had no apparent impact in the control analyses of homicide deaths within any age group.
Conclusion:
The release of 13 Reasons Why was associated with a significant increase in monthly suicide rates among US youth aged 10 to 17 years. Caution regarding the exposure of children and adolescents to the series is warranted.
Recent literature and public discourse emphasize the role of craft breweries in the revitalization process of economically distressed neighborhoods across the U.S. With this, many are reporting rising property values in areas surrounding craft breweries. This research examines the impacts of craft breweries on both residential and commercial property values in a case study of Charlotte, North Carolina. Estimating a series of hedonic models which incorporate a difference‐in‐difference estimator, we find that craft breweries have a positive impact on residential property values. While many areas in close proximity to a craft brewery appear to have been associated with relatively higher price premiums even before the opening of the brewery, breweries tend to add to this premium, especially in center‐city neighborhoods. We find no significant impacts on commercial property values. These results are informative to policy makers considering revising zoning laws and other regulations in efforts to promote the growth of craft breweries and spur economic development in their local economies.
Background and aims
A growing body of evidence suggests that cannabis impairs driving ability. We used mortality data to investigate whether the commercial sale of cannabis for recreational use affected traffic fatality rates both in states that legalized it and in neighbouring jurisdictions.
Design
Interrupted time–series of traffic fatality rates adjusted for seasonality and autocorrelation. Changes are reported as step and trend effects against a comparator of states that had not implemented medicinal or recreational cannabis during the study period (2009–16). Sensitivity analyses added a 6‐month ‘phase‐in’ to account for lags in production. Meta‐analyses were used to derive pooled results.
Setting
Three states that legalized recreational cannabis sales [Colorado (January 2014), Washington State (June 2014) and Oregon (October 2015] and nine neighbouring jurisdictions [Kansas, Nebraska, New Mexico, Oklahoma and Utah (Colorado neighbours); British Columbia and Oregon (Washington neighbours); and California and Nevada (Oregon neighbours)].
Measurements
Monthly traffic fatalities rates per million residents using mortality data from CDC WONDER and RoadSafetyBC and census data.
Findings
There was a pooled step increase of 1.08 traffic fatalities per million residents followed by a trend reduction of −0.06 per month (both P < 0.001), although with significant heterogeneity between sites (step: I² = 73.7%, P < 0.001; trend: I² = 68.4%; P = 0.001). Effects were similar in both legalizing (step: 0.90, P < 0.001; trend: −0.05, P = 0.007) and neighbouring sites (step: 1.15, P = 0.005; trend: −0.06, P = 0.001). The 6‐month phase‐in produced similar if larger effects (step: 1.36, P = 0.006; trend: −0.07, P < 0.001).
Conclusions
The combination of step increases and trend reductions suggests that in the year following implementation of recreational cannabis sales, traffic fatalities temporarily increased by an average of one additional traffic fatality per million residents in both legalizing US states of Colorado, Washington and Oregon and in their neighbouring jurisdictions.
I examine the competitive effects of mandated exclusive territories in the US beer industry. Theory is ambiguous as to the competitive impacts of this vertical practice. Using scanner data from a large number of grocery stores, I empirically examine the impact on beer prices, quantities, and number of brands sold after Wisconsin mandated that brewers must assign exclusive wholesale territories in 2006. Reduced form results from a differences-in-differences model using several control groups and a synthetic control show that the mandates increased prices and reduced quantity of craft beer. Overall number of brands sold decreased as well and craft brewers were the most negatively impacted. Findings suggest that the mandate gave protection to wholesalers and caused an increase in the costs of distribution and reduced competition in the brewing industry.
Current Blue laws are primarily concerned with limiting the sale of alcohol on Sunday. This presumably decreases adverse outcomes related to alcohol consumption. We examine whether the repeal of alcohol sales on Sunday in Georgia had an impact on teenage drinking, which is linked to a multitude of risky behaviors. We exploit the heterogeneous repeal across counties and municipalities. To account for potential endogeneity, we employ an instrumental variable approach. Across several model specifications, we find no effect of repeal on underage drinking. Concerns that repeal might contribute to increases in underage drinking appear to be unfounded in this case. © The Author 2017. Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved.
In 1978, H.R. 1337 was signed into Federal law allowing for the home production of beer at the national level forever changing the U.S. brewing industry. Like the repeal of Prohibition, states were granted the right to enact their own homebrewing laws, resulting in a heterogeneous rollout of legalized homebrewing. This research examines the relationship between homebrewing legislation and the growth of the beer industry across the United States, and finds that enacted legislation has had a significant effect on the structure and growth of the brewing industry. (JEL L51, N42, Q18)
Rationale, aims, and objectives
Interrupted time series analysis (ITSA) is an evaluation methodology in which a single treatment unit's outcome is studied serially over time and the intervention is expected to “interrupt” the level and/or trend of that outcome. ITSA is commonly evaluated using methods which may produce biased results if model assumptions are violated. In this paper, treatment effects are alternatively assessed by using forecasting methods to closely fit the preintervention observations and then forecast the post‐intervention trend. A treatment effect may be inferred if the actual post‐intervention observations diverge from the forecasts by some specified amount.
Method
The forecasting approach is demonstrated using the effect of California's Proposition 99 for reducing cigarette sales. Three forecast models are fit to the preintervention series—linear regression (REG), Holt‐Winters (HW) non‐seasonal smoothing, and autoregressive moving average (ARIMA)—and forecasts are generated into the post‐intervention period. The actual observations are then compared with the forecasts to assess intervention effects.
Results
The preintervention data were fit best by HW, followed closely by ARIMA. REG fit the data poorly. The actual post‐intervention observations were above the forecasts in HW and ARIMA, suggesting no intervention effect, but below the forecasts in the REG (suggesting a treatment effect), thereby raising doubts about any definitive conclusion of a treatment effect.
Conclusions
In a single‐group ITSA, treatment effects are likely to be biased if the model is misspecified. Therefore, evaluators should consider using forecast models to accurately fit the preintervention data and generate plausible counterfactual forecasts, thereby improving causal inference of treatment effects in single‐group ITSA studies.
We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.
Over the past decade, local food systems have been identified as having a significant influence on regional economies. Using a recent change in West Virginia’s craft beer distribution laws as a case study, we show that although employment might not experience a statistically significant change due to additional legalized marketing channels, wages did experience a significant increase. Our findings suggest that state economies might benefit from reducing restrictions on small, local producers.
This study addressed the influence of distance on store choice behavior when store choice behavior was measured in different ways. On the basis of a structural equation model involving service output, price and distance it was found that the negative effect of distance on store choice behavior was remarkably larger when store choice behavior was measured as ‘frequency’ than when store choice behavior was measured as ‘budget share’. This result was consistent across all the investigated categories of retailers, i.e., conventional supermarkets, warehouses and discount stores.
Purpose
While previous studies have looked at the negative consequences of beer drinking often as a prelude to discussing benefits of laws that curtail consumption, the purpose of this paper is to understand the downside of such regulations insofar as reducing entrepreneurial activity in the brewing industry.
Design/methodology/approach
Using a unique data set from the Brewers’ Association that contains information on the number and type of brewery in each county, this study explores the relationship between the number of breweries and regulations targeted at the brewing industry. Zero-inflated negative binomial regressions are used to determine the relationship between the number of microbreweries and brewpubs per county and state beer taxes, self-distribution legislation, and on-premises sales.
Findings
The authors find that allowing breweries to sell beers on-premises as well as allowing for breweries to self-distribute have statistically significant relationships with the number of microbreweries, brewpubs, and breweries. The authors do not find an economically significant relationship between state excise taxes and the number of breweries of any type.
Originality/value
Results suggest that whatever public health benefits are brought about by alcohol laws, they are not a free lunch, as they may hinder entrepreneurial development.
In recent decades the American craft beer industry has experienced impressive growth. Between 1980 and 2013, the number of craft breweries in the US increased from 8 to 2,768. This growth is reflected in increased market share. In terms of production volume, in 2013 craft brewers had a 7.8% share of the US beer market as compared with only 2.6% in 1998. The craft segment’s penetration of the US beer market is even more impressive when viewed in terms of dollar sales. In 2005, craft breweries accounted for 5.4% of US beer sales. By 2013, this share stood at 14.3%. From the perspective of economic impact it has been estimated that the craft-brewing industry contributed $33.9 billion to the US economy in 2012 and was responsible for more than 360,000 jobs (Brewers Association, 2014c). Some communities are hoping to capitalize on growing consumer interest in craft beer by incorporating micro-breweries and brewpubs into their plans for community and neighbourhood revitalization (Weiler, 2000) while the potential economic benefits of beer tourism are being increasingly recognized (Plummer et al., 2005).
New Zealand permitted grocery stores to sell table wine products beginning April 1990 with the implementation of a new Sale of Liquor Act. The number of licensed outlets for retail sales of wine for consumption off-premises increased substantially. Using an interrupted multiple time-series design with nation-wide quarterly alcohol safes data from 1983 to 1993, we assessed the effects a the policy change on sales of wine. Results from Box-Jenkins time-series models revealed a 17% increase in wine sales associated with the introduction of wine into grocery stares. Increased sales were limited to the specific category of alcoholic beverages permitted in grocery stores-table wine. Sales of fortified wine, distilled spirits and beer did not increase. We conclude that expansion in retail availability of wine is associated with increased sales and consumption.
The availability of alcoholic beverages in grocery stores varies across the United States due to state-level regulations.
Recently there have been a number of controversial legislative proposals to expand the distribution of certain alcoholic beverages,
most notably wine. Our econometric results show that, holding constant the total quantity of alcohol consumed, a higher share
of wine correlates with lower traffic fatality rates, while the opposite is true for beer. These findings suggest that arguments
against the wider distribution of wine as an approach to reduce social problems may not be fully justified.
The authors explore the geographic patterns craft beer breweries in the United States.
Consumer involvement with a particular product category has yielded rich results for retail marketing strategy. This research extends the concept by adding brand decision involvement and purchasing involvement as well to derive retail customer segments. An intercept sample of 368 shoppers in four different types of wine shops is used to derive five clusters of shoppers. The typology is validated internally and externally. The clusters derived show strong differences across both purchase behaviour and response to marketing strategies, providing an initial test of the efficacy of using different types of involvement to understand shopping behaviour
Older industrial districts, often rich with history and architecture, are paradoxically central yet decaying features of the modern US urban landscape. However, several such areas are experiencing major renaissances through individual sparks of private business investment. Lower Downtown (LoDo) Denver is a well-known example of this phenomenon; less recognised is the influential role of craft breweries in its rebirth. This paper first explores a game-theoretical framework for understanding the private strategies in such pioneer enterprises, along with the potential market failures and externalities involved. A case study of the LoDo experience is then presented to highlight both the theoretical and policy perspectives of the research.
This definitive study uses theory, history, and data to analyze the evolution of the US brewing industry from a fragmented market to an emerging oligopoly. Drawing on a rich and extensive data set and applying the theoretical tools of industrial organization, game theory, and management strategy, the authors provide new quantitative and qualitative perspectives on an industry they characterize as "a veritable market laboratory." The US brewing industry illustrates many of the important topics in industrial organization, economic policy, and business strategy, including industry concentration, technological change, brand proliferation, and mixed pricing strategies. After giving an overview of the industry, Tremblay and Tremblay discuss basic demand and cost conditions and industry concentration. They describe the evolution of the leading mass-producing brewers and the emergence of both specialty brewers and imports. They analyze the history and the causes of product and brand proliferation (showing how product proliferation leads to firm dominance), discuss price, advertising, merger, and other management strategies, and examine the industry's economic performance. Finally, they discuss public policy, including anti-trust and public health issues. The authors' set of industry, firm, and brand data for the period 1950-2002 -- the most comprehensive data set of economic variables available for an oligopolistic industry -- will be available to purchasers of the book who send an e-mail request. Data sources are listed in an appendix. Robert S. Weinberg, a management strategy scholar and leading consultant to the brewing industry, contributes a foreword. This ambitious, authoritative work, capping the authors' 25-year study of the brewing industry, will be a valuable resource for industry analysts, economists, and students of industrial organization.
Food and beverage tourism is increasingly recognised as a way to showcase local products and stimulate tourism demand. The use of an ale trail, similar to a wine trail also represents an important option for small retailers to partner to promote their products. The purpose of this paper is to investigate the results of a self-reporting survey conducted over a 3-year period at six breweries along the Waterloo–Wellington Ale Trail located in south central Ontario, Canada. A total of 2136 valid surveys were returned and the results are examined under visitor profile, visit information and the Ale Trail experience. The paper stresses the importance of partnering and collecting baseline data for new ventures.
We provide a new approach to automatic forecasting based on an extended range of exponential smoothing methods. Each method in our taxonomy of exponential smoothing methods provides forecasts that are equivalent to forecasts from a state space model. This equivalence allows: (1) easy calculation of the likelihood, the AIC and other model selection criteria; (2) computation of prediction intervals for each method; and (3) random simulation from the underlying state space model. We demonstrate the methods by applying them to the data from the M-competition and the M3-competition. The method provides forecast accuracy comparable to the best methods in the competitions; it is particularly good for short forecast horizons with seasonal data.
This paper develops a simple model that shows how a country can endogenously become differentiated into an industrialized "core" and an agricultural "periphery. " In order to realize scale economies while minimizing transport costs, manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing. Emergence of a core-periphery pattern depends on transportation costs, economies of scale, and the share of manufacturing in national income. The study of economic geography-of the location of factors of production in space-occupies a relatively small part of standard economic analysis. International trade theory, in particular, conventionally treats nations as dimensionless points (and frequently assumes zero transportation costs between countries as well). Admittedly, models descended from von Thunen (1826) play an important role in urban studies, while Hotelling-type models of locational competition get a reasonable degree of attention in industrial organization. On the whole, however, it seems fair to say that the study of economic geography plays at best a marginal role in economic theory. On the face of it, this neglect is surprising. The facts of economic geography are surely among the most striking features of real-world economies, at least to laymen. For example, one of the most remarkable things about the United States is that in a generally sparsely populated country, much of whose land is fertile, the bulk of the population resides in a few clusters of metropolitan areas; a quarter of the inhabitants are crowded into a not especially inviting section of the East Coast. It has often been noted that nighttime satellite
The realization that places compete for investment has expanded in recent years to encompass competition among places for the attention of migrants, tourists and media glow as well as investment. The most competitive places have been multidimensional in their attractions and have made the transition to the knowledge-based economy. The latest priority is being placed on attracting mobile workers and mobile investment. Creative workers are the core of the knowledge economy and of its geographies such as 'intelligent places' and 'learning regions'. Knowledge metrics, innovation indices and report cards are increasingly common, each seemingly developed to sort the list of places in a different order. Lists or league tables of 'the best places' for business, to live, retire and visit are key features of economies and societies whose factors of success are highly mobile. Competition in a geographical context and entrepreneurial responses are unlikely to go away, reinforced by an industry comprised of consultancies, the trade press, formal education and other means of learning. Consequently, policy-makers need to grasp the nature of place competition and the critical roles of knowledge and of networks in the strategies of the most competitive places. The standard of competition is complex, comprising innovation indices and cooperation within the network of world cities.
Cadwallader M. (1981) Towards a cognitive gravity model: the case of consumer spatial behaviour, Reg. Studies 15, 275--284. A cognitive gravity model is tested and found to be a potentially useful predictor of consumer spatial behaviour. Within the context of this study, the mass component appears to be far more important than the distance component, although it is not clear whether the mass component should be expressed in an additive, multiplicative or weighted additive form. Also, there is evidence to suggest that the relative importance of the individual store attributes varies from store to store.
Regular church attendance is strongly associated with a higher probability of voting. It is an open question as to whether this association, which has been confirmed in numerous surveys, is causal. We use the repeal of the laws restricting Sunday retail activity ("Blue laws") to measure the effects of church-going on political participation. The repeal of Blue Laws caused a 5 percent decrease in church attendance. We measure the effect of Blue Laws' repeal on political participation and find that following the repeal turnout falls by approximately 1 percentage point. This turnout decline, which is statistically significant and fairly robust across model specifications, is consistent with the large effect of church attendance on turnout reported in the literature, and suggests that church attendance may have significant causal influence on voter turnout.
It’s official: Coloradans will be able to buy wine in grocery convenience stores starting in March. The Colorado Sun
- T Chuang
Chuang, T. (2022). It's official: Coloradans will be able to buy wine
in grocery, convenience stores starting in March. The Colorado
Sun, November 23. http://coloradosun.com/2022/11/23/
proposition-125-wine-grocery-stores-passes/
Challenge and resilience in 2018. The New Brewer
- P Gatza
- B Watson
Gatza, P., & Watson, B. (2019). Challenge and resilience in 2018.
The New Brewer, June.
Are grocery store beer sales killing Colorado’s liquor stores?
- D Kessinger
Kessinger, D. (2019). Are grocery store beer sales killing
Colorado's liquor stores? 5280, October 16. https://www.5280.
com/2019/10/are-grocery-store-beer-sales-killing-coloradosliquor-stores/
A new alcohol distributor network aims to revolutionize the industry. Forbes
- T Pellechia
Pellechia, T. (2020). A new alcohol distributor network aims to revolutionize the industry. Forbes. August 20. https://www.forbes.
com/sites/thomaspellechia/2020/08/20/a-new-alcohol-distributornetwork-aims-to-revolutionize-the-industry/
King soopers company adding 600 jobs in Colorado. The Coloradoan April sec
- J Laxen
‘What about bias in your dataset?’ Quantifying sampling bias in SafeGraph patterns
- R F Squire
Economic impact. (blog)
- B Watson
Hinman & Carmichael LLP
- M T Tobiassen
Colorado beer-sales regulations bill is gutted by state house committee in unusually volatile hearing
- E Sealover
- Sealover E.
Sealover, E. (2018a). Colorado beer-sales regulations bill is gutted by
state house committee in unusually volatile hearing. Denver
Business Journal, May 5. https://www.bizjournals.com/denver/
news/2018/05/05/beer-sales-regulations-bill-is-gutted-in-unusu
ally.html
Economic impact. Stats and Data (blog)
- B Watson
Watson, B. (2020). Economic impact. Stats and Data (blog). https://
www.brewersassociation.org/statistics-and-data/economic-impactdata/
Introducing SafeGraph Places: The source of truth about physical places (blog)
- A Hoffman
Brew free or die: A comparative analysis of U.S. and E.U. craft beer regulations
- T Lam
- Lam T.
Lam, T. (2014). Brew free or die: A comparative analysis of U.S. and
E.U. craft beer regulations. Cardozo Journal of International and
Comparative Law, 23(1), 197-232.