Robert H. Scott, Ph.D., professor in the department of Economics, Finance, and Real Estate and Arthur and Dorothy Greenbaum/Robert Ferguson/NJAR Endowed Chair in Real Estate Policy, and Geoffrey Fouad, Ph.D., adjunct professor of sociology at Manhattan College, recently published “The beer garden state: Neolocalism and clustering of craft breweries in New Jersey” in the Journal of Wine Economics (Cambridge University Press, 2024).
In the article, Scott and Fouad explore the clustering patterns of craft breweries in New Jersey, highlighting how craft breweries contribute to local identity and economic development through neolocalism. The authors argue that multiple breweries clustering together in one specific area creates a mutually beneficial relationship in which the breweries share customers and resources while collaborating to enhance a vibrant community culture that encourages consumers to shop locally.
Scott and Fouad’s research finds that craft breweries in New Jersey are clustering in three distinct areas: Asbury Park, Camden, and Wildwood. With 28% of planned breweries intending to open within existing clusters, the data suggests no new clusters are currently forming; however, the authors identify the potential for a new cluster in the northeastern part of the state near Jersey City and Elizabeth where there is an opportunity to engage a diverse audience through neolocalism.
The authors conclude that “craft breweries that cluster benefit from external economies of scale and can create a more vibrant beer culture in their area than one brewery could likely produce alone.” Read the full article here.