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An Econometric Evaluation Of Localism And Other Potential Success Factors In California’S Craft Brewing Industry, Connor Sinclair

CMC Senior Theses

As growth of the American craft brewing industry slows and smaller firms account for a greater proportion of expansion, I test whether traits that are indicative of smaller firms have an effect on brewery success. I hypothesize that firms which utilize localist strategies such as geographical branding, use of local ingredients, charitable giving, and/or sustainable practices are more successful than others and therefore produced more barrels of beer in 2017. To test my hypothesis, I estimate ordinary least squares regressions with robust standard errors using data collected from the Brewers Association and the websites of 362 California craft breweries. I …