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Beneficial inefficiency

Good Grape – you guessed it, a blog aimed a wine drinkers – credits Sam Calagione of Dogfish Head Brewery with creating the economic theory of “Beneficial Inefficiency.”

The author is moved to ask this question:

Isn’t a really relevant question here, maybe the wineries have it all wrong? Maybe they don’t need to grow bigger, maybe they won’t be able to sustain a market of new customers buying direct in the Midwest, maybe what they should do is create less product and market it better.

Now substitute the word “breweries” for “wineries” and read it again.

I’m not supporting the concept of aritificial shortages, but perhaps it is better for all of us if breweries have the option of producing less and still making money – because that allows them to focus on quality.

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