The irresistible rise of craft breweries in Italy: magic out of nowhere or just another example of agro-food diversification Report as inadecuate




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This research empirically investigates the emergence of craft breweries in Italy over the period 1993-2014, whose risehas generated, in the recent years, an high number of entries in the sector.Two different order of possible drivers can be taken into account. therefore the rise of craft brewing can be simplyinterpreted as the consequence of a change in the beer market, particularly the increasing attention of consumers to thequality of productions and their geographical origin, with the consequent differentiation and segmentation of themarket. Secondly, it can be argued tha, the rise of craft breweries in Italy shows a territorial concentration thusindicating that also local factors may represent major drivers. Due to agglomeration economies of different nature,areas with a specialization in food and, above all, beverages production may represent preferential territories for newentries. The same can be argued for areas showing a strong tendency towards agricultural diversification.At the sametime, this geographical concentration may generate congestion effects (or localized diseconomies) whenever localizedentries become too many given the size of the market. The present study proposes an empirical investigation on the roleof local drivers in determining the entry into this sector of new craft breweries as well as the selection process of theexisting breweries. This investigation takes the form of an entry-exit analysis and is carried out through a sequence ofsurvival models.

Keywords: Craft breweries ; Beer industry ; Entry and exit ; Survival analysis

Subject(s): Agribusiness

Issue Date: 2015-06

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/207271

Total Pages: 17

JEL Codes: L11; L66; Q13

Record appears in: Italian Association of Agricultural and Applied Economics (AIEAA) > 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy





Author: Esposti, Roberto ; Fastigi, Matteo ; Orazi, Francesco ; Viganò, Elena

Source: http://ageconsearch.umn.edu/record/207271?ln=en







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