Did the MillerCoors Joint Venture Strengthen the Craft Beer Revolution?

21 Pages Posted: 22 Jul 2021 Last revised: 28 Oct 2022

See all articles by José Azar

José Azar

University of Navarra, IESE Business School; CEPR; ECGI

Xabier Barriola


Date Written: September 05, 2022


We study how the MillerCoors joint venture affected craft brewers in the United States. We use scanner data to track the entry, assortment, and market share of artisanal and commercial brewers over a 4-year period after the merger. Using an instrumental variables strategy that uses only variation in concentration generated by the merger, we find that, in the average market, the merger led to an 11.59% increase in the number of craft brewers. The number of products per craft brewer did not increase. Most of the new entrants were small, and thus the market share of craft brewers experienced only a small (though statistically significant) increase. This entry of new firms may have been facilitated by the increase in prices by incumbent commercial producers following the merger.

Keywords: mergers, product policies, competitive strategies

JEL Classification: G34, L11, L13, L20, L66

Suggested Citation

Azar, José and Barriola, Xabier, Did the MillerCoors Joint Venture Strengthen the Craft Beer Revolution? (September 05, 2022). International Journal of Industrial Organization, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3889729 or http://dx.doi.org/10.2139/ssrn.3889729

José Azar

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034

CEPR ( email )

United Kingdom

HOME PAGE: http://https://sites.google.com/site/joseazar/

ECGI ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Xabier Barriola (Contact Author)

INSEAD ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex

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