Local to national and back again: Beer, Wisconsin & scale

Abstract

Brewing has been an important part industrialized in the latter portions of Wisconsin's culture and economy since the first settlers arrived in the early 1800s. Like much of the country, Wisconsin brewers experienced a spatial shift in accordance with the industry's technology. Starting with many brewers each serving local markets, developments in beer preservation, packaging and transport allowed certain Wisconsin brewers to seize opportunities for expanded market areas. The enlarged economies of scale achieved by these larger brewers provided a competitive advantage that slowly put smaller operations out of business. By the mid-twentieth century, brewing had largely become a national enterprise with fewer local or regional players. Though its market share remained limited, the craft brewing movement represented a reversal of this trend, both nationally and in Wisconsin. Like the early brewers who had settled the state, these new Wisconsin breweries were focused on achieving an economy of scale by developing a local market of consumers.