Craft and micro-breweries have sparked consumer interest in a wide variety of flavor profiles and interest in supporting small, locally owned businesses. In addition, these companies have created pressure on established brands such as Budweiser and Miller that have increased promotional activities and reduced prices as a strategy to retain customers. Craft breweries are an example of _________, one of Michael Porter's five competitive forces.

Question

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Craft breweries represent a threat of new competitors to established beer brands by offering diverse flavor profiles and appealing to consumer interest in supporting local businesses, thereby challenging the market share of larger companies.

Craft and Micro-Breweries Have Sparked Consumer Interest in a Wide