Contract Brewing – Production-Oriented Cooperation in Craft Brewing Industry

Open access

Abstract

The objective of the paper is to analyze the cooperation in craft beer manufacturing in Poland and to identify the specificity of this phenomenon from the perspective of enterprise management. The sales of craft beers in Poland are growing rapidly. Craft beers have about a 0.5% share in the total beer sales value in Poland. The popular practice in the industry is contract brewing. It is an interesting phenomenon in the field of cooperation of enterprises which can be classified and analyzed as a form of: economic cooperation (generally), production cooperation, outsourcing, network and virtual organization and also coopetition. It is a specific business model. Contract brewing is a complex problem the specificity of which emerges on several levels. Firstly, there is a special way to emerge in the market of craft beers, even while not possessing significant funds by the entrepreneur. Secondly, it is a form of cooperation in the field of production which unites efforts on the side of both the customer and the contractor since it is not limited to normal outsourcing of production to an external entity but involves physical production capacity of the contractor and technological know-how of both cooperation parties. Thirdly, it is firmly embedded in human relationships. Fourthly, it can generate coopetitive relations since the brewery accepting the order may conduct its own activity related to production and sales of beer under its own brand.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Ahuja M.K. Carley K.M. 1999. Network structure in virtual organizations. Organization Science 10(6) 741-757 https://doi.org/10.1287/orsc.10.6.741

  • Akhtaryev R.R. 2010. Prospects for the Development of Economic Relations and Industrial Cooperation. Regional Economy: Theory and Practice 47 69-76 http://doi.org/10.9770/jesi.2018.5.3(4)

  • Brewhub Oferta współpracy z browarami kontraktowymi. http://brewhub.com/partner-brewing-services-2/ (13.10.2018)

  • Cardon M.S. Wincent J. Singh J. Drnovsek M. 2009. The nature and experience of entrepreneurial passion. Academy of Management Review. 34 (3) 511-532 https://doi.org/10.5465/amr.2009.40633190

  • Carroll G.R. Swaminathan A. 2000. “Why the Microbrewery Movement? Organizational Dynamics of Resource Partitioning in the U.S. Brewing Industry”. American Journal of Sociology 106(3) 715-762 https://doi.org/10.1086/318962

  • Cichocki P. Jędrkiewicz T. Zydel R. 2012. Etnografia wirtualna [in:] Badania jakościowe t.2 D. Jemielniak (ed.) Wydawnictwo Naukowe PWN Warszawa 203-220

  • Cogburn D. Hine M. Espinosa J.A. Santuzzi A. 2019. Virtual Teams Organizations and Networks. Proceedings of the 52nd Hawaii International Conference on System Sciences 963-964.

  • Craft Brewers Association www.craftbrewersassociation.org (20.01.2019)

  • Fomina A. Berduygina O. Shatsky A. 2018. Industrial cooperation and its influence on sustainable economic growth. Entrepreneurship and Sustainability Issues Entrepreneurship and Sustainability Center 5(3) 467-479 https://doi.org/10.9770/jesi.2018.5.3(4)

  • Galbraith J.R. 1995. Designing Organizations: An Executive Briefing on Strategy Structure and Process. Jossey-Bass USA.

  • Garrett O. 2018. The Oxford Companion to Beer definition of contract brewing. Craft Beer & Brewing Magazine https://beerandbrewing.com/dictionary/8KzoKNZaCS/contract-brewing/ (12.10.2018).

  • Havierniková K. Okręglicka M. Lemańska-Majdzik A. 2016. Cluster cooperation and risk level in small and medium-sized enterprises. Polish Journal of Management Studies 14 (2) 82-92 DOI: 10.17512/pjms.2016.14.2.08

  • Jemielniak D. 2013. Netnografia czyli etnografia wirtualna – nowa forma badań etnograficznych. Prakseologia (154) 97-116

  • Kielesińska A. 2018. Food quality and safety in the brewing industry. Production Engineering Archives 20 16-19 DOI: 10.30657/pea.2018.20.04.

  • Kilduff M. 2006. A Paradigm Too Far? A Dynamic Stability Reconsideration of The Social Network Research Program University of Texas at Austin. Academy of Management Review 31(4) 1031-1048 https://doi.org/10.5465/amr.2006.22528168

  • Kostera M. 2003. Antropologia organizacji: Metodologia badań tereno-wych Warszawa: Wydawnictwo Naukowe PWN.

  • Kovács G. 2017. Global economic changes optimization of virtual enterprises – software development. Polish Journal of Management Studies 15(2): 125-131 https://doi.org/10.17512/pjms.2017.15.2.11

  • Kovács G. Kot S. 2016 New Logistics and Production Trends as the Effect of Global Economy Changes. Polish Journal of Management Studies 14(2) 115-126 DOI: 10.17512/pjms.2016.14.2.11

  • Kraus S. Klimas P. Gast J. and Stephan T. 2018. Sleeping with competitors: Forms antecedents and outcomes of coopetition of small and medium-sized craft beer breweries. International Journal of Entrepreneurial Behavior & Research 25(1) 50-66 DOI: 10.1108/ijebr-09-2017-0356

  • Matejun M. (2006). Rodzaje outsourcingu i kierunki jego wykorzystania. Zeszyty Naukowe Politechniki Łódzkiej Organizacja i zarządzanie. 989(42) 19-36.

  • Melamed D. Harrell A. Simpson B. (2018). Cooperation clustering and assortative mixing in dynamic networks. Proceedings of the National Academy of Sciences 115(5) 951-956 https://doi.org/10.1073/pnas.1715357115

  • Momme J. 2001. Outsourcing Manufacturing to Suppliers Department of Production Aalborg University Denmark 2001.

  • Momme J. Hvolby H.H. 2002. An outsourcing framework: action research in the heavy industry sector. European Journal of Purchasing & Supply Management 8(4) 185-196 https://doi.org/10.1016/S0969-7012(02)00003-5

  • Morris M. Schindehutte M. Allen J. 2005. The entrepreneur's business model: toward a unified perspective. Journal of business research 58(6) 726-735 https://doi.org/10.1016/j.jbusres.2003.11.001

  • Mosher R. 2009. Tasting Beer: An insider’s guide to the world’s greatest drink. North Adams MA s. 5.

  • Nielsen 2018 Piwna Rewolucja Raport FMCG AND RETAIL. 27-06-2018 Nielsen 2018 https://www.nielsen.com/pl/pl/insights/reports/2018/beer-revolution.html (20.02.2019)

  • Niemczyk L. 2017. Mikrobrowary jako element rozwoju regionalnego w Polsce i na Podkarpaciu Przedsiębiorstwo i Region 9 49-57 DOI 10.15584/pir.2017.9.6.

  • Nikulina O.V. Kuznetsov A.A. 2016. International Cooperation as a Mechanism for Interaction of Industrial Enterprises in the Field of Innovation. National Interests: Priorities and Security 4(337) 88-102.

  • Oliver G. (Ed.) 2012. The Oxford companion to beer. New York: Oxford University Press.

  • Osterwalder A. Pigneur Y. 2010. Business model generation: a handbook for visionaries game changers and challengers. John Wiley & Sons.

  • PACOVSKÉ STROJÍRNY Producent urządzeń browarniczych www.pacovske.cz (20.02.2019).

  • Perechuda K. 2000. Organizacja wirtualna [in:] Zarządzanie przedsiębior-stwem przyszłości. Koncepcje modele metody Praca zbiorowa pod redakcją K. Perechudy Agencja Wydawnicza Placet Warszawa s. 47.

  • Podeszwa T. 2015. Browarnictwo rzemieślnicze (craft-brewing)-oddolna aktywność mikrowytwórców stymulantem rozwoju rynku i samokształ-cenia w zakresie browarnictwa. Acta Innovations (15) 51-56

  • Poszumska U. 2017. Branża piwna. Nawarz sobie (i innym) dobrego złotego napoju Marketing i biznes 12.05.2017 https://marketingibiznes.pl/biznes/branza-piwna/ (12.10.2018).

  • Siedlecki D. 2015. Browar kontraktowy – co to w ogóle jest? 10 LUTEGO 2015 https://browarparagraf.com/2015/02/browar-kontraktowy-co-to-w-ogole-jest/ (23.01.2019)

  • Smith S. Farrish J. McCarroll M. Huseman E. 2017. Examining the Craft Brew Industry: Identifying Research Needs International Journal of Hospitality Beverage Management 1(1) Article 3 Available at: https://scholars.unh.edu/ijhbm/vol1/iss1/3 (15.11.2018).

  • Smorodinskaya N. Russell M. G. Katukov D. 2017. Innovation Ecosystems vs. Innovation Systems in Terms of Collaboration and Co-creation of Value. Proceedings of the 50th Hawaii International Conference on System Sciences 5245–5254 https://doi.org/10.24251/hicss.2017.636

  • Stańczyk-Hugiet E. 2015 Strategicznie o ekosystemie biznesu. Prace Naukowe WWSZIP 32 (2) 395-409.

  • Strauss H. 2018. Contract Brewing: Evolving to Support Today’s Brewers. August 21 2018 Craft Beer & Brewing Magazine https://brewingindustryguide.com/contract-brewing-evolving-to-support-today%27s-brewers/ (12.10.2018).

  • The Brewers of Europe 2017. Beer Statistics. 2017 Edition December Brussels https://www.brewersofeurope.org/uploads/mycmsfiles/documents/publications/2017/Statistics-201712-001.pdf (accessed on: 15.04.2017)

  • Ulewicz R. 2018a. Outsourcing – procedury controlled shipping w branży motoryzacyjnej. Zeszyty Naukowe Politechniki Śląskiej Seria: Organizacja i Zarządzanie 117(1996) 687-697 https://doi.org/10.29119/1641-3466.2018.117.46

  • Ulewicz R. 2018b. Outsourcing quality control in the automotive industry. MATEC Web Conf. 183 12th International Conference Quality Production Improvement – QPI 2018 MATEC Web of Conferences 183 03001 (2018) DOI: 10.1051/matecconf/201818303001

  • Watne T.A. Hakala H. 2013. Inventor founder or developer? An enquiry into the passion that drives craft breweries in Victoria Australia. Journal of Marketing Development and Competitiveness 7(3) 54-67

  • Williamson O.E. 1985. The Economic Institutions of Capitalism: Firms Markets and Relational Contracting The Free Press New York

  • Zeffane R. 1995. The widening scope of inter-organizational networking: economic sectoral and social dimensions. Leadership & Organization Development Journal 16(4) 26-33 https://doi.org/10.1108/01437739510089076

  • Zott C. Amit R. Massa L. 2011. The business model: recent developments and future research. Journal of Management 37(4) 1019-1042 https://doi.org/10.1177/0149206311406265

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 117 117 9
PDF Downloads 181 181 43