Creating a buzz:

Craft breweries draw tourists to rural Oregon

EOU economics professor Jeff Dense’s research focuses on the political economy of vice.

After establishing himself as a nationally recognized expert on state lotteries, his current research focuses on the craft beer industry. He has served as a consultant for some of the world’s leading craft beer competitions and festivals, including the World Beer Cup and Great American Beer Festival. Dense conducts survey-based analysis of the events in order to ascertain the economic impact the events have on local economies.

“Craft beer is a real economic driver in communities” he said. Dense teaches a series of craft-beer-focused classes at EOU, including Beer and Politics, Beer and Tourism, and Globalization and Beer. The classes are offered in conjunction with the Oregon Brewers Festival and Bend Brew Festival.

Students in the classes conduct surveys of event attendees to better understand demographics and spending patterns. Visitors often stay in area hotels, eat at local restaurants, visit breweries and engage in retail shopping.

Community events that attract large numbers of out-of-state attendees have a significant economic impact on the local economy. Nearly half of Oregon Brewers Festival attendees are out-of-town
visitors.

Dense explained that economics and politics are permanently linked, and his work touches on both areas. For example, part of the reason Oregon’s brewing industry grew from less than 100 breweries in the 1970s to over 9,000 today is due to low taxes. Dense has served as a legislative advocate for the craft beer industry in Oregon, and his research has played a vital role in keeping excise taxes low and promoting a business-friendly environment for new breweries.

“Craft beer is a real economic driver in communities.”

-Jeff Dense

Oregon has a long history with the brewing industry. Hops and barley grown in the Willamette Valley and Wallowa County remain a critical source for breweries. Interdependence among farmers, millers and brewers instigated a web of interdependent relationships that strengthen agricultural economies.

Keeping craft beer on the up-and-up requires constant innovation, both in product and process. Dense highlighted two aspects of brewing that are adapting to changing times: gender inclusivity and environmental concerns.

“We’re in the midst of a real reckoning with gender,” he said. “Brewing culture for a long time hasn’t been female-friendly.”

Dense’s research has shown that almost half of the attendees at beer festivals are women, and newly popular products like hard seltzers and sour beers are developed for this growing market.

While growth is good, more and more breweries are finding ways to expand more sustainably. Repurposing spent grain as cattle feed, minimizing water waste and sourcing equipment and malt locally all cut down on the environmental impact of brewing.

The COVID-19 pandemic has offered a stern challenge to the Oregon craft beer industry, as a number of breweries have had to curtail operations. Despite this, Dense argues breweries play an essential cultural role, especially in rural communities.

“All beer places create a third place, a community gathering spacewhere people from different backgrounds can meet,” he said. “Every small town should have a brewery to serve that purpose and provide culture.”