What Are the Reasons Behind the Economic Performance of the Hungarian Beer Industry? The Case of the Hungarian Microbreweries

In terms of absolute alcohol consumption and total quantity consumed, beer is the most consumed alcoholic beverage in Hungary. The Hungarian industry highly concentrated, three largest, foreign-owned companies ruled market for almost 90% turnover 2009–2017. study investigates factors influencing industry’s economic performance, special attention given to microbreweries. analysis applied panel-data linear models period financial performance breweries represented by companies’ turnover, Earnings Before Interest Taxes (EBIT) profit along with explanatory variables age brewery, Social Media activity, geographical location, direct sales, impact tax reduction. Breweries sales channels reached significantly higher EBIT profit. situated or close capital are profitable due demand high-quality beer, contrast, distance from had a negative on firms’ performance. activity–often used as only promotion channel microbrewery–positively impacts brewery’s profitability. Finally, reduction small introduced 2012 significant positive influence industry.