Spatial diffusion of barrel-aging techniques in the American craft beer industry

Abstract This research explores the factors that influence the adoption of barrel-aging techniques by US-based craft brewers from 2008 to 2014. Particular focus is placed on the importance of influence from geographically close peer breweries as a way to understand the effects of local influence or knowledge spillovers from agglomeration. Combining data on brewery-level production and estimates of the timing of the release of barrel-aged (BA) beers, I find evidence that nearby releases of BA beers increase the likelihood of a brewery introducing its first BA beer. However, national trends appear to be a stronger influence. These effects are robust to estimating on subsamples of brewery and metro sizes and controlling for a local demand proxy.