Farm animal welfare (FAW) continues to be a divisive issue in the egg industry. In the United States, 10 states and most major retailers have implemented policies or voluntary pledges to transition to 100% cage-free egg sales. We use best-worst scaling and discrete choice experiments to evaluate U.S. consumer preferences for various FAW policies, calculate willingness to pay for cage-free eggs, and simulate the effects of policy implementations on consumers. Our results suggest that consumers generally prefer implementing less restrictive FAW policies, such as farm subsidies and mandatory labeling programs, relative to more restrictive bans on housing practices. However, many consumers still support implementing more stringent policies like bans on cage egg sales when put to a dichotomous choice. In terms of market preferences, results indicate that consumers, on average, are willing to pay premiums for eggs from hens raised in less confined settings. Yet, cage-free captures the lowest premium if not accompanied by other labels. Simulation of market choices reveals that banning conventional eggs could increase market opt-out rates by as much as 20% points, emphasizing the importance of maintaining the conventional option to some consumers. These results have marketing and policy implications that can inform stakeholders as they navigate evolving FAW standards.

The halo effect, or the tendency to judge one product characteristic based on other product characteristics, is prevalent in food purchasing decisions. However, its effects have remained understudied in beverage markets. Understanding potential health halos in alcohol markets is especially important given the many adverse public health outcomes associated with excessive consumption. This study uses primary data from a panel of 1,203 U.S. hard seltzer consumers to explore two potential halo effects in the alcohol marketplace. The experimental design isolates the impact of organic labeling on alcoholic beverages and compares the perceived healthiness of hard seltzer relative to beer. The results provide little evidence of these halo effects. Rather, perceived taste and drinkability appear to explain much of the recent growth in the hard seltzer market.

Past research shows that farm animal welfare (FAW) policies can reduce consumer and retailer welfare, but producer welfare implications are less certain. This study uses equilibrium displacement modeling of the U.S. wholesale shell egg market to determine how the transition to cage-free egg sales could affect short- and long-run producer welfare. Under varying assumptions and retailer demand shifts, the results consistently demonstrate that producer profits are expected to decline as retailers pivot toward cage-free purchasing, holding all else constant. These findings help explain the tension surrounding FAW policies across the supply chain and can be used to inform industry and policymaker discussions on the topic.

This study uses a basket-based choice experiment with 2,010 U.S. adults to analyze alcohol and cannabis preferences in social settings following cannabis legalization. Through descriptive statistics and multivariate logistic modeling, we highlight the heterogeneous preferences consumers have for alcohol and cannabis products. Specifically, we demonstrate that a substantial portion of the survey respondents prefer to consume these substances together in social settings, while others view them as independent markets. Regression analysis then reveals that males and younger consumers are most likely to bundle these substances, while personality traits also correlate with expected simultaneous substance use. These results offer valuable insights to improve public health policy and messaging on the potential short- and long-term risks associated with cosubstance use.

As global energy drink sales and caffeine content have surged, so have public health concerns over childhood energy drink consumption. With limited regulatory oversight, potential adverse effects, and recent claims of targeted marketing toward children, there is a need to better understand society’s evolving relationship with energy drink markets. This study uses experimental and survey data from a national panel of 1,036 U.S. adults to assess consumer preferences and perceptions toward energy drink policies and marketing. First, we use a best-worst scaling experiment to assess preferences for energy drink labeling requirements, sales channel bans, marketing restrictions, and caffeine caps relative to the status quo. A randomized information treatment also considers how information from health agencies highlighting risks to childhood health affects policy preferences. Without this information, respondents have the strongest preference fora mandatory and prominently displayed caffeine content label. Providing information on the potential childhood health risks, however, increases the relative ranking of policies banning sales to children in retail outlets and high schools. The exploratory survey analysis then provides insights into marketing perceptions that open avenues for future research. For example, we show that it takes the average consumer more than twice as long to find the caffeine content of an energy drink than its calorie count, most consumers believe energy drink packaging is at least somewhat appealing to children, and the perceived target audience of social media marketing varies across brands. These results and the corresponding discussion provide important global policy-relevant insights as the energy drink market develops.

Alcohol policy liberalization is a contentious issue in the United States, including debates over whether grocery stores should be allowed to sell wine. This issue reflects a dilemma between accommodating consumer convenience, promoting wine industry growth, and generating tax revenue, versus concerns about potential harm to liquor stores. However, there is a lack of empirical studies evaluating the dual impacts of wine sales liberalization following policy reforms. This study uses synthetic control methods and synthetic difference-in-differences to provide robust evidence on the impact that wine sale liberalization has on liquor store closures, employment outcomes, and wine excise tax revenue. Drawing on proprietary NielsenIQ data and official government statistics, the study provides a multidimensional assessment of how a 2016 Tennessee policy reform affected wine sales and supply chain dynamics. The results suggest that allowing grocery stores to sell wine had a statistically insignificant impact on the number of liquor stores, while also increasing wine excise tax revenue. However, there is mixed evidence of a potential short-term decline in liquor store employment, where the statistical significance of the point estimate depends on the statistical approach. Recognizing that policy reform can have unintended economic consequences, these results provide valuable, policy-relevant insights for stakeholders navigating the evolving landscape of alcohol distribution.

A recent U.S. government proposal aims to mandate expanded nutrition labeling on alcoholic beverages. The rule could improve consumer awareness, but much remains unknown about consumers' perceptions of this labeling initiative. This study utilizes survey data from 769 U.S. beer drinkers to understand consumer perceptions of nutrition labeling, their current knowledge about the calorie content of different beers, and their beliefs about how the reform should be implemented. The results suggest that most consumers believe alcoholic beverages should include nutrition information, such as total calories and macronutrients, and that they may use this information to inform their purchasing decisions. Additionally, consumers consistently underestimate the calorie content of some popular beers. While this highlights existing misperceptions and could lend credence to calls for heightened nutrition labeling, each beer included in the study already bears this information. The fact that most consumers are unaware of the calorie count in products that already communicate nutrition facts suggests that labeling alone may not increase consumer awareness as much as the policy hopes. Lastly, many consumers support greater flexibility for small breweries during the transition, but communicating nutrition facts through a QR code is not a popular option. These results can inform industry decision-making and political discourse on the relationship between transparency in nutrition labeling, consumer preferences, and the challenges small producers face in adjusting to regulatory changes.

BackgroundWith global protein demand rising and the perceived environmental, health, and animal welfare drawbacks associated with meat production and consumption, there is growing interest in expanding alternative protein markets. The first and second generations of plant-based meat alternatives represent potential alternatives, and other alternatives, such as lab-grown meat, are emerging as prospective outlets.Scope and approach. This article provides an overview of the market potential for both first and second-generation meat alternatives, along with emerging lab-grown meat products. It also examines the environmental and nutritional aspects of these products in contrast to conventional meat choices. Lastly, it discusses the challenges and opportunities related to product development and market expansion.Key findings and conclusions. Meat alternatives, specifically second-generation plant-based and lab-grown options, display growth potential while facing market and regulation challenges. Nevertheless, they come with mixed environmental and health impacts. They offer reduced carbon footprints and enhanced resource efficiency compared to traditional meat production. However, their manufacturing processes tend to be energy-intensive. Furthermore, although their nutritional profiles feature lower saturated fat content, concerns arise due to elevated sodium levels and the heavily processed nature of some products, casting doubts on their overall healthiness. Lastly, we emphasize the market challenges, including high costs, technology/scaling concerns, and barriers to consumer acceptance, while outlining how the four Ps of marketing can present opportunities for meat alternative markets.

Hard cider is a sector of a maturing craft beverage industry that continues to experience growth in the United States. Cider is also experiencing challenges, however, such as competition from other alcohol markets, changing consumer preferences, the supply chain, and inflationary pressures. National policy changes may help promote more optimal outcomes for this sector, but public support is important to policy formation. This study uses survey data from a best-worst scaling experiment of consumers in four leading cider-producing states (Michigan, Washington, Wisconsin, and Vermont) to understand preferences toward ten broad cider policy initiatives. The results of multinomial logistic modeling reveal that consumers prefer policies mandating ingredients, nutrition facts, and allergen labeling across all ciders. The least preferred policy initiatives include allowing producers to use vintage on labeling and funding regional cider development. These results have important implications for stakeholders across the industry, including the benefits of labeling disclosures in marketing and the need to improve public awareness of barriers to cider industry development.

Several cage-free egg mandates and retailer pledge deadlines are set to take effect in January 2026. Yet it is unknown whether producers can transition to cage-free production at a rate commensurate with these goals. This study uses qualitative and quantitative data from 2 U.S. egg producer surveys to evaluate the operational activities of conventional and cage-free facilities, identify market challenges, and assess the expected transition timeline. Across both studies, producers indicated higher fixed and variable costs in cage-free housing systems, with capital and labor being 2 of the central drivers of the cost increase. While several producers are willing to adopt cage-free production, they are hesitant to view the market shift as an opportunity. Among the most commonly cited barriers are limited customer demand, high capital costs, and a contradiction to environmental sustainability and food security efforts. With the current challenges, respondents are skeptical that the industry will meet the January 2026 voluntary pledge deadlines. The results from this study offer a holistic view of the potential ramifications of the cage-free transition on the egg market and can be used to inform marketing strategies and policy discussions.

Small businesses in the food and beverage service industry are particularly vulnerable to crises such as the COVID-19 pandemic. One of the most salient vulnerabilities was the drastic decline in consumer spending at eating and drinking places, generating unprecedented swings in employment in this service-intensive sector. Governments across the globe implemented rapid response fiscal policies to mitigate these economic damages and improve small business crisis management. One such policy was the Paycheck Protection Program (PPP) in the United States. This study links restricted microdata from the Colorado Quarterly Census of Employment and Wages to microdata on PPP loan recipients to assess whether the loan program effectively reduced unemployment rates in Colorado's craft beer industry. The results of a staggered difference-in-differences framework indicate immediate and longer-term positive and statistically significant effects of the loan program on employment outcomes, with employment effects ranging from 16.8 to 19.5%. These results emphasize the importance of understanding the loan program’s effectiveness among hard-hit industries comprised of small businesses.

Brewers are pursuing solutions to reduce water usage, encourage more sustainable farming, limit material use, and power facilities with clean energy. What does torched earth taste like? According to New Belgium Brewing Company’s CEO Steve Fechheimer, it “tastes like eating a Band-Aid.“In 2021, New Belgium wanted to raise awareness of the impact of climate change […]

Food regulations protect consumer health, mitigate environmental concerns, and promote animal welfare, but they can also hinder innovation, limit entrepreneurship, and generate higher consumer prices. This study examines the number of federal and state regulatory restrictions affecting the beef, pork, poultry, sheep, goat, and seafood industries, including processing, wholesale distribution, and retail sales. We also examine state regulatory heterogeneity associated with animal protein products. Our results suggest that protein supply chains have become subject to tens of thousands of regulatory constraints over the past half-century. We also find substantial heterogeneity in the number of state restrictions associated with animal production, indicative of large differences in the amount of administrative law across states. Results highlight that the patchwork approach of U.S. food policy creates overlapping, cumbersome guidelines for manufacturers, and given the interconnectivity of modern food supply chains, the framework can create additional hurdles for interstate commerce.

Though choice overload has been extensively studied in packaged products, fewer studies have explored these phenomena in minimally packaged agribusiness products such as potted plants. This matters as these products are heterogeneous not only across product categories but also within the same plant genus, changing the baseline cognitive load for consumer decision-making. This study uses eye-tracking technology to explore how increases in the number of options presented in potted plant retail displays affects visual attention and consumer choice by expanding cognitive load. In a within-subjects design, participants completed six choice tasks, indicating their likelihood to buy their most preferred alternative. As display size increased, participants ignored a larger percentage of the display, engaged in common choice patterns, and spent a lower percentage of their gaze sequence fixated on their selected alternative. [EconLit Citations: C91, D91, Q13]

Although the influence of regulations on economic outcomes has been well documented, few studies have focused on the geography of regulatory burdens. The regulations confronting any supply chain can vary dramatically across legislative jurisdictions, as U.S. policy is enforced by overlapping federal, state, and local governments. We use a unique data set to explore state-by-state regulatory variation in U.S. beer supply chains in 2020. We find that the state-level rules targeted at the beer supply chain vary between 1,177 and 25,399, with the average state implementing 10,212 formal regulatory restrictions.

Attractive displays can stimulate sales in the retail setting. With most plants still sold in physical retail outlets, the influence of display layout on visual behavior and purchasing is of interest to academicians and practitioners. Using a within-subjects in-lab experiment and eye tracking technology, we explored how the cognitive load imposed by horticultural retail displays affects visual attention and choice. Display layouts were varied for six choice tasks in which participants indicated their most preferred alternative and their likelihood-to-purchase that alternative. Our study suggests that as the number of plant genera increases, perceived display complexity increases, and participants ignore a larger percentage of the products in the display while spending a lower percentage of their gaze sequence fixated on their choice product. Implications for retailers include increasing horizontal merchandising, reducing vertical merchandising, and diversifying the product mix in the display. Index words: cognitive load, eye tracking, marketing, retail displays, complexity. Species used in this study: Buddleia davidii Franch. ‘Little Nugget', Campanula portenschlagiana Resholt (Roem. & Schult.), Coreopsis grandiflora L. ‘Sunburst', Echinacea purpurea Moench ‘Delicious Candy', Hydrangea paniculata L. ‘Limelight', Lupinus spp. L. ‘Tutti Fruitti', Sempervivum cv. L, Spirea japonica L. ‘Double Play Red'.

The Paycheck Protection Program (PPP) provided approximately US $790 billion in COVID-19 relief funds to small businesses across the United States. This study merges a verified industry dataset of craft beer producers with government microdata on PPP loan recipients to examine the relationship between PPP funding and small business performance during the pandemic. Results indicate that firms receiving PPP funding were more likely to remain in operation and experience a smaller decline in annual production. However, even within a single industry, COVID-19 had heterogeneous effects on different market segments, demonstrating the importance of a firm’s pre-pandemic business model on its flexibility and resiliency during a crisis. Finally, using a quasi-experiment that exploits a natural break in the loan program, the study suggests a positive causal effect of the role of loan approval timing on short-run performance outcomes. These findings provide evidence that the PPP alleviated some losses induced by COVID-19, but questions remain about the program’s distribution and long-term impacts. The US federal government created the Paycheck Protection Program (PPP) to minimize the economic damages from COVID-19 on workers and small businesses. One industry hit particularly hard by the pandemic was the craft brewing industry, making it an ideal industry to explore whether the PPP achieved its objectives. The results show that receiving a PPP loan increased the likelihood of remaining in business through the pandemic. Additionally, while most craft breweries experienced a decline in annual production from 2019 to 2020, firms that received a PPP loan experienced a smaller reduction. Breweries that received the earliest funding also performed better, suggesting that loan timing played a key role in performance outcomes. Taken together, the study suggests that the government program helped reduce economic damages associated with COVID-19, but more work is needed to fully understand the program’s impact.

While the influence of regulations on economic outcomes has been well-documented, fewer studies have focused on the economic geography of regulatory burdens. The regulations confronting any supply chain can vary dramatically across legislative jurisdictions, as U.S. policy is enforced by overlapping federal, state, and local governments. In this paper the authors use a unique dataset to explore state-by-state regulatory variation in U.S. beer supply chains in 2020. They find that the state-level laws targeted at the beer supply chain vary between 1,177 and 25,399, with the average state implementing 10,212 formal regulatory restrictions.

Consumers habitually support local food and drink, but locally grown products often come from less developed value chains with lower quality control standards; something suppliers must consider. Using data from Michigan craft breweries, we describe the determinants of a brewer's decision to purchase local hops. Utilizing generalized linear models, we determine how factors—including perceived consistency and attitudes towards localness—impact hop purchasing decisions. Results indicate that hop consistency is a leading factor, and beliefs about localness stimulating the economy or helping the environment may not be enough to drive local purchasing.