Exclusive Territories and Efficiency: Evidence From the Brewing Industry

2019 ◽  
Author(s):  
Jacob Burgdorf
Author(s):  
Christian Rojas

Abstract Theories on the welfare and competitive effects of exclusive territories are numerous, yet they provide ambiguous results. This paper exploits a natural experiment in the U.S. brewing industry to identify the direction of change in welfare caused by the use of exclusive territories. On January 31, 1991, the state of Arkansas enacted legislation which mandated all beer manufacturers to have exclusive territory clauses in their agreements with distributors. To identify the effect, I employ brand-level sales data before and after the legal change both in Arkansas as well as in nearby Oklahoma and Texas. Results are broadly consistent with a positive relationship between the use of exclusive territories and welfare: the most credible results suggest that the legal mandate increased brand-level volume sales by 45%. I conduct several falsification exercises and robustness tests to rule out other possible explanations for this large effect.


2019 ◽  
Vol 19 (4) ◽  
pp. 78-90
Author(s):  
Theresa McCulla

In 1965, Frederick (Fritz) Maytag III began a decades-long revitalization of Anchor Brewing Company in San Francisco, California. This was an unexpected venture from an unlikely brewer; for generations, Maytag's family had run the Maytag Washing Machine Company in Iowa and he had no training in brewing. Yet Maytag's career at Anchor initiated a phenomenal wave of growth in the American brewing industry that came to be known as the microbrewing—now “craft beer”—revolution. To understand Maytag's path, this article draws on original oral histories and artifacts that Maytag donated to the Smithsonian Institution's National Museum of American History via the American Brewing History Initiative, a project to document the history of brewing in the United States. The objects and reflections that Maytag shared with the museum revealed a surprising link between the birth of microbrewing and the strategies and culture of mass manufacturing. Even if the hallmarks of microbrewing—a small-scale, artisan approach to making beer—began as a backlash against the mass-produced system of large breweries, they relied on Maytag's early, intimate connections to the assembly-line world of the Maytag Company and the alchemy of intellectual curiosity, socioeconomic privilege, and risk tolerance with which his history equipped him.


2019 ◽  
Vol 1 (79) ◽  
pp. 159-167
Author(s):  
Ivan Egorov ◽  
◽  
Tatyana Egorova ◽  
Lyubov Krivoruchko ◽  
Ilya Nikonov ◽  
...  

Author(s):  
Piotr Szamrowski ◽  
Adam Pawlewicz

The main objective of this paper is to identify the platforms and social media tools utilized by the brewing industry in communication with the stakeholders, mainly with potential clients. In addition, the study sought to determine the nature of the published content, identify those responsible for their management, and present the advantages and disadvantages of their conduct in communication and creating the image of the company. The results indicate that only 25% of the surveyed companies do not use social media in PR. This applies only to small enterprises, with regional character. All the major brewing companies in their public relations activities use at least one type of social media, focusing in most cases on social networking (Facebook) and Video Sharing (YouTube). In addition, some of the largest brands included in the individual equity groups have their own social media channels used to communicate with the stakeholders. General promotion of company products and, what is very important, creating a dialogue with social media platform community, were seen as the most important benefits of using social media.


2021 ◽  
pp. 1-21
Author(s):  
Ludwig Erl ◽  
Florian Kiesel

Abstract This study provides a perspective on the market performance of divestitures in the global brewing industry. In 2018, the five largest players accounted for 60% of the global beer volume. We analyze to what extent the capital market values divestitures in an industry where players usually seek efficiency gains and growth through mergers and acquisitions. Based on a sample of 61 divestiture intent announcements in the period from 1999–2018, this study shows that publicly listed brewing groups experience significant positive abnormal returns of about 1.4%. We measure the influential effect of success determinants concerning the underlying industry, the divested business, the divestiture structure, and the divestor itself. (JEL Classifications: G14, G34, L25, Q14)


Fermentation ◽  
2021 ◽  
Vol 7 (2) ◽  
pp. 96
Author(s):  
Frank Vriesekoop ◽  
Annie Haynes ◽  
Niels van der Heijden ◽  
Hao Liang ◽  
Paraskevi Paximada ◽  
...  

The utilisation of food production by-products back into food production within a circular food economy is one of the driving examples to improve sustainability within the food industry. Brewers spent grain is the most abundant by-product from the brewing industry, with currently most of it being used as animal feed. In this study, we utilised brewers spent grain as a substrate in a solid-state fermentation in order to produce a Type-3 sourdough culture. Sourdough bread is becoming increasingly popular throughout the western world. The use of fermented brewers spent grain in the production of sourdough bread yielded sourdough bread that was acceptable by consumers. We also investigated the production and presence of the main organic acids in sourdough during the proofing process and the baking process. The baking trials showed that there was a reduction in both lactic and acetic acid content during the actual baking process. The reduction in the concentration of both organic acids appears to be at the heart of the observation that for both organic acids, there is typically a lower concentration in the crust compared to the crumb of the sourdough breads, which was observed in our sourdough breads and those commercially available.


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