An Analysis of the Brewpub Industry

The Economy
The healthy economy and the busy lifestyle of two-income families bode well for the future of brewpubs, as do current demographics. Groups including baby boomers, "echo" baby boomers and immigrants from the last 20 years are nearing their peak earning years (Walkup). At a time when many operators are worrying about their financial futures, several brewpubs are finding and seizing growth opportunities made possible by the uncertain economy. Good real-estate deals, low interest rates, a growing labor market and value-seeking customers are helping risk-taking operators expand beyond their core markets or strengthen their national presence (Walkup).
Ethical Issues and Challenges Faced by Entrepreneurs in the Industry
All You Can Drink Promotions
The growing number of all-you-can-drink promotions in bar establishments have come under scrutiny. "Researchers from the Harvard School of Public Health College Alcohol Study (CAS) released a new study documenting the extent to which college students are targeted with sales of large volumes of alcohol, low sale prices, and frequent alcohol promotions at bars surrounding college campuses (CAS news release)." The study found a strong association between the presence of these promotions and higher rates of heavy drinking on college campuses.
Marketing of low-price, high-volume beer and liquor at on- and off-premise establishments was positively associated with the average total number of drinks students consumed, according to research by the Harvard School of Public Health College Alcohol Study (All you can drink deals scrutinized).
Among the bars, clubs, and restaurants surrounding college campuses, the prices for a single drink, pitcher, or "the largest volume" were significantly correlated with college binge drinking rates: the lower the average alcohol sale price among bars, clubs, and restaurants surrounding the college campus, the higher the college binge drinking rate. The presence of weekend beer specials was highly correlated with college binge drinking rates. Almost three quarters of on-premise establishments offered such weekend specials. Almost one half provided at least one type of beer promotion (CAS news release).
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