| Abstract: | This article examines the intraurban geography of craft breweries in ten cities across the United States. First, through an exhaustive literature review, we outline both supply- and demand-side factors that might cause craft breweries to cluster. Second, we empirically test whether these establishments tend to cluster within cities using spatial statistical techniques. Many communities are attempting to support the establishment of more craft breweries as a way to boost tourism and economic development. The findings from this article aid in this discussion by providing insights into how craft brewers locate and the factors that could influence their location decision behavior. Our findings suggest that craft brewers do in fact cluster. There are both supply and demand factors responsible. On the supply side, the collaborative environment within the industry and the artisan nature of the industry's products allows for benefits of clustering to outweigh the costs associated with this behavior. On the demand side, the emergence of “brewery districts” allows individual brewers to enjoy the reputation benefits associated with the district in terms of increased foot traffic from locals and visitors looking to sample a variety of beers. |
