International Journal of Business, Management and Commerce (IJBMC)

ISSN 2519-9056 (Online) , ISSN 2519-9048 (Print)

Strategies for Improving Supply Chain in the Craft Brewing Industry

Cody Thompson1

Abstract

It is no secret that Americans love beer, especially when it is made of natural ingredients and produced locally. This theory is supported by the craft beer boom that is currently taking place throughout the United States. The craft beer market made approximately $19.6 billion dollars in sales in 2014, which represented a growth of 22% from the previous year. On average, there are two breweries being opened per day and a record total of 3,418 craft breweries in the US as of 2014. Defining craft beer is a difficult task because everyone seems to have their own take on its meaning, and that meaning appears to change as each year goes by. The Brewers Association categorizes craft brewers as small, independent, and traditional. The issue with that definition is that many craft breweries, which were once small, are now experiencing substantial growth, yet still considering themselves in the craft category. While the owners of these new breweries are courageous and creative individuals, often their business acumen could use improvement. Opening a brewery is a complicated experience that usually results in the owners being more preoccupied with creating interesting beers and designing artistic labels, rather than focusing on the operations side of the company. However, a few simple solutions to a brewers’ supply chain could make their companies much more efficient.

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