Craft beer in Slovakia

Abstract

The objective of this chapter is to evaluate how globalization of the Slovak economy, economic growth, inflow of FDI in brewing industry, affected not only the structure of the standard beer market but also the expansion of craft brewing. In particular, we evaluate how the interplay between the developments of standardized and globalized traditional beer industry, income growth resulting in increasing demand for beer diversity, and development and dissemination of craft brewing technology and know-how, changing lifestyles and expansion of entrepreneurship as well as government policies affected the growth of craft breweries. A survey was performed among craft breweries. A structured interview was used as a tool of data collection. There were 20 owners of craft breweries in Slovakia interviewed (out of total number of 51). The survey was focused on factors affecting demand for craft beer, the impact of traditional beer market characterized by homogenous products on demand for differentiated craft beer in Slovakia, types of beers produced by craft breweries, motivation behind starting the craft brewery, factors influencing the supply of craft beer, availability of inputs, know-how for craft beer production, regulation of craft beer production, government support for craft beer production, and vertical and horizontal cooperation in micro-brewing. Results show availability and better prices of technologies and inputs for brewing beer, know-how and EU subsidies have a positive impact on the supply side, while higher incomes, increasing demand for product diversity, and changing lifestyles had a strong positive impact on the demand side. On the other hand, there are some barriers for expansion also. The major ones are bureaucracy, lack of qualified brewers and taxation policy.