Abstract
This chapter examines the elasticities of demand of beer (price, cross price and income). This shows how the drivers of demand for beer vary regionally. We break down this demand between on- and off-trade consumption to show that these two markets have very distinct features, analysing data for 97 countries using Euromonitor data from 2006 to 2021, using a panel fixed effects model. We find that off-trade beer is a complement for on-trade, the “Prinks effect” where beer is consumed at home before going to an on-trade venue, but on-trade beer is a substitute for off-trade beer. We identify region-specific differences such as: Western Europeans off-trade beer consumption falling as their incomes rise and Eastern Europe being the only region where the “Prinks effect” doesn’t hold. We make recommendations around region specific similarities in on- and off-trade which could be considered by businesses considering pricing and internationalisation policies.
| Original language | English |
|---|---|
| Title of host publication | The Geography of Beer |
| Subtitle of host publication | Policies, Perceptions, and Place |
| Editors | Mark Patterson, Nancy Hoalst-Pull |
| Pages | 71-88 |
| Number of pages | 18 |
| ISBN (Electronic) | 978-3-031-39008-1 |
| DOIs | |
| Publication status | Published - 2 Dec 2023 |