Distribution strategies of new and renewed regional industrial breweries in the context of Czech identity and the traditional beer market

Abstract

The geography of the brewing industry is currently undergoing substantial shifts. While most attention has been paid to the boom of microbreweries, newly established regional breweries have been neglected and little is known about how they are gaining a position among consumers in stable and saturated markets. The aim of this article is to investigate what strategies new breweries use to establish distribution regions and which factors are at play based on the consumers’ economic and socio-cultural preferences, all within the contextual influence of market development and territorial identity. The research is based on the mapping of distribution regions of seven new Czech breweries and interviews with their representatives. The breweries first opt for a contagion strategy focusing on local customers to provide a basis for further expansion. The hierarchy strategy with a preference for wealthier customers in distant cities subsequently prevails. The choice and success of the chosen strategy depend on the interaction between regional market development and consumers’ territorial identity. In Czechia, local breweries, especially those that have restored and maintained historic brewery buildings, are attracting consumers from cities, while consumers from the countryside prefer nationally known beer from big industrial breweries.