The entrepreneurial response to beer legalisation in 1933 prior to the end of Prohibition

Jason E. Taylor, Eline Poelmans and Evan Hayne

Business History, 2024, vol. 66, issue 7, 1834-1861

Abstract: This paper explores the speed with which US breweries responded to the legalisation of beer in the spring of 1933 as well as the factors that contributed to how long these 1933 breweries survived. We find that around 200 breweries were legally selling beer on 7 April – a majority of these breweries were producing ’near beer’ during Prohibition – and that a relatively steady stream of around 50 breweries per month entered across the rest of 1933, bringing the total to 607 by the year’s end. We find that larger breweries were able to both enter more quickly in 1933 and to survive longer post 1933. We also find that breweries that commenced sales more quickly within 1933 survived longer than otherwise.

Date: 2024
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DOI: 10.1080/00076791.2023.2207011

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