Craft beer: penetrating a niche market

Douglas W. Murray · Martin O’Neill

168 citations0/0 files storedBritish Food Journal

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Wine Industry and Tourism Culinary Culture and Tourism Consumer Market Behavior and Pricing

Abstract

Purpose The purpose of this paper is to examine the underexplored niche market potential of craft beer, especially as it may relate to independent food and beverage operations, as a means of gaining competitive advantage. Design/methodology/approach Data were collected through the distribution of a survey instrument to craft beer and home brewers, designed to assess the demographic profile, purchasing/restaurant selection, and decision behavior of this group and assess the likelihood of their future behavioral intentions toward continued participation in the craft beer segment. Findings The paper reveals that craft beer and micro brew pub success has been driven by the home brew movement and continues to gain market share at the expense of broad line food service and macro beer producers. The demographic profile of this group shows age range, income, and educational levels sufficient to drive continued growth. The high satisfaction and likelihood to recommend scores support this assessment. Research limitations/implications The sample is limited to members of the Brewers Association, the American Home Brewers Association, and craft beer enthusiasts known to members of the organization. Additionally, the survey was administered electronically limiting participation to people comfortable with this medium. Practical implications F&B operators who demonstrate commitment to craft beer through server education, beverage list commitment, and supporting events can achieve market differentiation and dominance within the niche; leading ultimately to competitive advantage. Originality/value This research sheds light on underexplored areas of craft beer and the opportunity for independent F&B operators to identify and penetrate an increasingly important niche market, which to date has been viewed primarily from the perspective of microbrew pubs.

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References

1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 2000Why the Microbrewery Movement? Organizational Dynamics of Resource Partitioning in the U.S. Brewing Industry 1985Concentration and Specialization: Dynamics of Niche Width in Populations of Organizations

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