The Evolution of the American Brewing Industry Alfred G
Journal of Business Case Studies – November/December 2010 Volume 6, Number 6 The Evolution Of The American Brewing Industry Alfred G. Warner, Penn State Erie, USA ABSTRACT This case provides industry and historical background to firm specific cases in the brewing industry. It also stands alone as an industry evolution case. This case is intended for MBA or upper level undergraduate classes in strategic management. Keywords: brewing history, Anheuser-Busch, Miller, microbrewing INTRODUCTION eer, if drank with moderation, softens the temper, cheers the spirit and promotes health.” (Thomas Jefferson) B"Let no man thirst for good beer." (Sam Adams) Beer has been brewed in the U.S. since the Pilgrims arrived – and it is held that they landed at Plymouth rather than further south because beer was running short on the Mayflower. According to the diary of one passenger: “We could not now take time for further search...our victuals being much spent, especially our beer..." (Beer Institute, 2010). Whether this is the case or, as others have it, the landing was motivated by sailors afraid of running out of beer on the homeward voyage, beer mattered. Production in the new colonies was in the form of ales and porters which had traveled with British settlers. Small breweries were operating in major cities well before the Revolutionary War. George Washington, for example, had a strong preference for porter, particularly from Philadelphia brewer Robert Hare (Baron, 1962) and as the epigrams indicate, other founding fathers had an equivalent appreciation. Still, beer was not by any means the most popular alcoholic beverage in the new country: whiskey, cider, and rum all outpaced demand for beer, particularly since brewing ales was an iffy proposition with respect to quality and the product was often sour.
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