Over the last few decades, changing laws, regulations and buying patterns have resulted in a steady increase in sales across the country for small-scale microbrews.
Are these craft beer sales steadily rising because younger generations are flexing newly acquired purchasing power to choose brands different than those in previous generations or is it simply that there are significantly more choices available as younger generations have become of drinking age?
Put another way- are the craft brewers gaining share on the national brands due to demand (explicitly choosing different beers) or due to supply (more choices of beers)?
This is an interesting Chicago Booth report and a good read. It makes a case that the popularity of craft beers, with an accompanying rise in market share, is supply driven as opposed to demand driven. As the report analyzes- do the sales patterns reflect what beer customers demanded or the kind of beers available historically?
There is also an underlying warning to all big national brands that these sales dynamics are not necessarily limited to the beer industry.
Read the Chicago Booth report here- Why craft beer’s rise is a warning flag for all sorts of big brands
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