... on concentration, purchase volume, product differentiation, and switching costs. Contract brewers are highly concentrated. Thus, these brewers have a high degree of negotiating ability. Switching amongst co-packer brewers is extremely easy and low cost; in addition, many macrobrewers have excess capacity for co-packaging since the beer industry market is declining. Hence, contract brewers have many ... purchasing options (Wolfe, 1998). Also, contract brewers are high-volume purchasers; therefore, their impact on the co-packer is significant. For contract brewers, product differentiation ...

• Word Count: 12533
• Approx Pages: 50
• Grade Level: Undergraduate