Does the origin of inputs and processing matter? Evidence from consumers’ valuation for craft beer

In this study we aim at exploring consumer valuation for craft beer brewed locally and made with grown hops. The research is motivated by the fact that, although existing literature shows that consumers generally pay a price premium produced foods or those local ingredients, it still unclear how value localness of production (i.e., brewing location) over inputs hops origin) whether these attributes as either complements substitutes. Moreover, little known regarding preference ingredients in beer. Thus, address questions means choice experiment survey on State Indiana, United States. Results show have highest willingness to in-state, but preferences origin are heterogeneous. We find evidence complementarity between origins among frequent drinkers substitution claims casual drinkers. Segmenting based they define beer, one segment has in-state in-state. These results can inform product differentiation, marketing, pricing strategies. They also relevant state policymakers supporting brewing.