Regional brands produced beyond the region: An analysis of beer brands from recently closed breweries in Europe

Abstract

Global industry has been undergoing changes in the concentration of brand ownership and production, with acquisitions and closures being a major factor in this evolution. The impacts of such activities are commonly studied from an economic perspective and from the perspective of internal firm-level and deal-level factors, while the influence of external geographical factors is largely neglected. Our research focuses mainly on the importance of geographical cultural factors affecting beer brands whose production location was moved after the closure of the original breweries. The research includes a complete sample of 30 brands from recently closed breweries across Europe. Brands are divided into seven categories according to how their marketing strategy has (or has not) changed in terms of exploiting regional and national identity. The overall success of these brands is then measured in terms of the development of their share in the home countries’ markets. Differences in brands’ strategies and successes are explained through a wide range of country-level factors and the individual characteristics of the breweries. It is shown that the level of beer tradition or identity in the countries, as well as the country’s beer life-cycle position, plays a crucial role in the evolution of the studied brands.