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Local craft beer consumers don't seem to like it when their favorite brands are acquired, showing displeasure through spending habits, according to a new study on brand loyalty and craft beers.

The research study published in the journal Marketing Science is called "Local Market Reaction to Brand Acquisitions: Evidence from the Craft Beer Industry." The authors of the study are Ali Umut Guler of Koç University in Istanbul, Turkey; Kanishka Misra of the University of California, San Diego; and Vishal Singh of New York University.

The study found that there is a 15% drop in baseline product demand in local craft beer markets following the acquisition of specific craft beers by larger companies.

"There is a strong emotional connection between consumer and brand, which can induce a sense of psychological ownership of the brand itself on the part of the consumer," says Guler. "The consumer sees the brand as part of their extended self. So, when a local craft beer brand is acquired, the acquisition can impact that sense of ownership on the part of the consumer."

As of 2019, in the United States, the beer industry counted sales at roughly $120 billion per year, encompassing 6,400 breweries. The study authors conducted an empirical analysis of data on approximately 40 acquisitions of regional breweries between 2006 and 2016.

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