Trouble brewing: Craft ventures during market disruption

Abstract

Prior studies of craft-based categories have emphasized member ventures' prototypical features of smallness and innovativeness, collaboration and cohesiveness norms, and a perception of shared fate forging their strong oppositional identity vis-a-vis industrialized producers. However, our study of craft breweries reveals the potential pitfalls of rigidly adhering to these features and norms during market disruptions. As consumer behaviors changed during the COVID-19 crisis, smallness and innovativeness became liabilities while scale and familiarity became indispensable, favoring larger breweries over prototypical members. This shift exposed hidden divisions within the category, challenging long-held beliefs in shared fate and entrenching heterogeneity among members. The consequent realignment within the category demonstrates how market disruptions can reshape craft-based ventures and categories. Our study advances a theoretical understanding of the dynamic nature of prototypical features and norms: An adherence to category prototypes can become a source of vulnerability during times of significant upheaval.