The Rise of Craft Distilleries and Their Consumer Segments

ABSTRACT Craft distilleries, despite excessive barriers to entry, are growing in sales volume and number of locations each year, and as a result, the distilled spirits segment is taking market share away from beer and wine. The purpose of this study is to examine an underexplored area of academic research and provide valuable insights to craft distillery operators regarding the consumers who support them. This study employs lifestyle and benefit segmentation techniques and finds that craft distilled spirits consumers value functional and emotional benefits, and these significantly predict their intention to switch from a national spirit and local drinking establishment to a local craft spirit/distillery.