Product Line Extension among New England Craft Breweries

Abstract

The U.S. brewing industry was at a low point in the 1980s. Since that time, more than 4,000 new breweries of varying scales and scopes have entered the market. Given the rapid expansion in this industry, which involves large capital costs, it is useful to consider the competitive nature of individual firms. Using a sample of New England breweries, this study identifies several firm and geographic attributes that are linked to firms' product offerings. We find that the breadth of product lines and nature of competition varies by brewery type and by the economic environment of the market.