1. Christianne Penunuri and Joshua Chanin San Diego State University
Brewing Partnerships? Navigating Local Government What it means for brewers and cities that love brewers
Christianne Penunuri and Joshua Chanin
San Diego State University

2. Discussion roadmap Craft beer in San Diego County
Explaining brewery location patterns

3. Why is government especially challenging for craft brewers?
DIY
Iconoclastic
Innovation
Integrity of the workmanship
Experimentation
Craft joins head and hands (John Ruskin, Arts & Crafts Movement)
GOVERNMENT
One-size fits all
Democratic basis
Uniform service
Structure seeks mobile capital and measureable impact
Bureaucratic (each individual “owns” part of the process)

4. Why are craft brewers especially appealing for government?
Create social wealth
Draw creative class
Engage community
Philanthropic
Taxes, fees, revenue
Local labor, capital, revenue
GOVERNMENT
Seeks livable neighborhoods
Seeks educated workforce
Local business drives economy
Organic community engagement
Taxes, fees, revenue
Local labor, capital, revenue

6. San Diego County brewery count
Total as of 10/27: 155

7. What explains brewery location patterns?
Theory: Location is all about demand
Millennials?
Disposable income?
White men and other known beer drinkers?
Affordable real estate?
Some or all of the above?
Reality: No empirical support for any of it

8. Brewers want to be near other brewers!
Barajas et al (2017): Only significant predictor of brewery location is the presence of other breweries
Nilsson et al (2017): Evidence of clustering among breweries in 9 of 10 cities analyzed, including SD and SF

9. Brewery clusters in San Diego County

10. Clusters bring value For brewers: For cities:
Shared knowledge, materials, staff, etc.
Increased customer base
For cities:
Increased economic development prospects
The multiplier effect
Tourist destination?

11. Several questions remain
Why clusters in some places, not others?
How does a cluster start?
Does public policy matter?
What can a city do to start a cluster?
Help to expand an existing one?