'Microbrewers are an economic inspiration'
The Campaign for Real Ale (CAMRA) and mircrobrewers should be an "economic inspiration" to the nation as it struggles to emerge from recession.
That's according to economic experts at the prestigious Nottingham University Business School, who believe the ever-growing number of microbreweries offers hope for the UK's small businesses.
The economists also believe that real ale's rebirth in the wake of the Camra's founding in 1971 has implications for much of the UK economy. By 1970, the number of breweries in England was just 141 — down from 1,324 in 1900. But by 2004 the number of breweries in England stood at 480 after Camra helped raise awareness.
Numbers of microbrewers were also bolstered by the introduction of Progressive Beer Duty in 2002 — showing tax relief can also help rejuvenate industries.
"The fact is that the business world can learn an enormous amount from our beer buffs," said professor Peter Swann. "The range of products and the number of centres of production in brewing in England declined dramatically between 1900 and 1970.
"As is widely accepted, that process began to reverse with the formation of CAMRA and its fight against bland, mass-produced beers.
"This has led us to the position we're in now, with hundreds of small breweries spread all over the country and making thousands of different beers.
"In technical terms, this represents horizontal product differentiation and a reduction in the importance of the economies of scale.
"That's basically a clever way of saying variety is the spice of life and that more discerning tastes can be good for the economy."
He added: "We're often told small businesses will be key to the UK's financial recovery.
"The fall and rise of the local brew offers us a perfect example of 'small is beautiful', so it's vital to see what lessons we can learn from it.
"One of the most important is that a demand for the predictable can lead to the greater geographical concentration of an industry.
"By contrast, a demand for diversity can lead to greater geographic dispersion — which is the excellent position brewing finds itself in now.
"CAMRA and the microbreweries should serve as an economic inspiration — and I say that as a man who doesn't even like beer."
