Monthly Archives: June 2024

Community, Craft Breweries, Experiential Drinking

Inside The Five and The Experience Economy

I am not a football fan (the American variety that is), but I do know that the phrase “inside the five” refers to the zone between the five-yard line and the goal. It is also the name of a brewery (with three locations) in northwest Ohio. Inside the Five Brewing Co. was established in 2018, with the first location opening in Sylvania, OH. Two of the brewery’s owners, Chris Morris and Brandon Fields, were at Michigan State University together – the former was an offensive linesman and the latter a punter on Spartans football team. Both would go on to play in the NFL – Chris with the Oakland Raiders and Brandon with the Miami Dolphins. Such was their desire to make craft beer more accessible to more people in northwest Ohio, they opened a second and third location in Perrysburg, OH in 2020 and Toledo, OH in 2023. After its opening, all beer production was consolidated at their Toledo facility. In 2024, they opened a taproom at the Toledo facility.

On Father’s Day weekend, I visited all three of Inside the Five’s (ITF) within the space of three days. While it had not been my intention to do so at the start of the weekend, circumstances transpired that I ended up enjoying beer at all three venues. On the Thursday evening, I got a text from a friend asking for suggestions as to where we could meet the next afternoon to watch the opening game of the European Soccer Championships between Germany and Scotland. I suggested a local sports bar, but Glynn made the case for ITF in Sylvania. So that is where we met, and while my team, Scotland, were on the wrong end of a 5-1 drubbing, I at least was able to watch it while enjoying some excellent local beer.

Sunday was Father’s Day of course. My wife had already suggested ITF in Perrysburg for a Father’s Day dinner. She chose it because it was a brewery taproom (and she knows I like breweries) and because of its location near her stepmother’s apartment. Her stepmother had recently undergone a second hip replacement surgery, so a dinner venue nearby seemed like a good idea. So, I knew that I was going there.

What I did not know, however, is that my wife had made plans (with my youngest daughter and her boyfriend) to take me to ITF in Toledo in the afternoon of Father’s Day. In many respects, this is the most impressive of the three ITF locations. As I noted above, all of ITF’s production occurs there in a beautiful purpose-built production facility/taproom. This location is named The Fieldhouse, a nod to its proximity to the University of Toledo

What really impresses me about this location, however, is the way that they have developed and utilize their sizeable outside space which sits at the back of the brewery. When we arrived just after 1:00pm a farmer’s market (including craft vendors) was in full swing. This occurs every Sunday during the June – September from 11am-3pm. The fact that the number of vendors was relatively small probably reflects the fact that the market is in its infancy (it had only been going for a few weeks). I am sure that it will grow as the summer progresses.

The newly established Farmer’s Market at Toledo’s Inside The Five Brewery (Photo taken by Neil Reid)
The newly established Farmer’s Market at Toledo’s Inside The Five Brewery (Source: Inside the Five’s Facebook Page)

While ITF’s other two locations are more oriented towards adults, its Toledo location is clearly designed to attract families, including those with young children. While I was there, I saw a number of families sitting on the brewery’s outdoor patio and children playing in the purpose-built play area. For those who want to be more active while enjoying one of ITF’s excellent beers, there are a number of outdoor yard games available such as cornhole, for customers to enjoy. If the weather is not conducive to being outside a nice selection of board games are available. The outdoor space also includes a firepit, where folks can sit down and enjoy a beer and perhaps something to eat from one of the rotating food trucks when the weather is cooler.

Toledo’s Inside The Five Brewery offers a number of experiences for its patrons (Photo taken by Neil Reid)
One of the rotating food trucks that sets up at Toledo’s Inside The Five Brewery (Photo taken by Neil Reid)
Fire Pit at Toledo’s Inside The Five Brewery (Source: Inside the Five’s Facebook Page)
Games available for customers to play (Photo taken by Neil Reid)

ITF’s Toledo location is part of two larger trends that have been manifest in the American craft brewing scene for a number of years. These are a desire to be a different kind of drinking space, where children are welcome and where there is more do than just drink beer.

As noted in a 2018 report published by the University of New Hampshire Cooperative Extension, “while breweries have a reputation for attracting young people, . . . they appeal to families as well. They provide an atmosphere that is comfortable for parents and their children to eat and enjoy social time with others”. This is exactly what is happening at ITF’s Toledo location.

ITF has also positioned its Toledo brewery to be part of what is termed the “experience economy”. According to Bart Watson, Chief Economist of the Brewers Association, experiential drinking, which he defines as “not just going to drink” but “going to do something… and drink”, is on the rise. And, according to Nielsen, Craft breweries are proving very adept providing “new and creative experiences for craft drinkers to engage with their favorite brews”

The term “experience economy” is an interesting one. It was coined, as far as I can tell, by B. Joseph Pine II and James H. Gilmore in a paper published in the Harvard Business Review in 1988. There are ample data to show that people are increasingly spending more of their disposable income on experiences rather than things. This is particularly the case for the millennial cohort (the demographic frequently cited as the driving force behind craft beer’s popularity). Part of the reason why this might be the case is that, compared with things, purchasing experiences brings people more enduring happiness. Indeed, in a paper published in the Journal of Consumer Psychology, Ellizabeth Dunn and her co-authors suggest that to enhance their level of happiness, “consumers should buy more experiences and fewer material goods”. This is especially true of individuals with higher levels of disposable income (e.g., craft beer drinkers).

But why should purchasing experiences rather than things make people happier? In a paper published in Advances in Experimental Social Psychology in 2015, Thomas Gilovich and Amit Kumar suggest several reasons. These include the fact that experiences are often shared with other people, are less susceptible to unfavorable and unpleasant comparisons, and are less likely to invoke feelings of regret.

So, breweries that provide their patrons opportunities to engage in experiential drinking are in sync with a large portion of their customer base. The experiences offered by breweries do not need to be sophisticated or cost a lot of money to provide. Sitting round a fire pit with friends or playing a game of corn hole are often sufficient.

Inside the Five’s Toledo location is an excellent addition to its west Toledo neighborhood. The owners have taken a piece of undeveloped land and turned into an oasis where families and friends can go and have a beer and enjoy the amenities on offer. When I was there on Father’s Day, I noticed that there were still a couple parts of their property that remained undeveloped. I’ll be interested to see what they decide to do with these spaces.

Further Reading:

Dunn, Elizabeth W., Daniel T. Gilbert, and Timothy D. Wilson. 2011. If money doesn’t make you happy, then you probably aren’t spending it right. Journal of Consumer Psychology, Volume 21, Issue 2, Pages 115-125.

Gilovich, Thomas and Amit Kumar. 2015. We’ll always have Paris: The hedonic payoff from experiential and material investments. Advances in Experimental Social Psychology, Volume 51, Pages 147-187.

Pine, B. Joseph II and James H. Gilmore. 1998. Welcome to the experience economy. Harvard Business Review, Volume 76, Issue 4, Pages 97-105.

International

Four Days in Uzbekistan


Last month I spent four days in Uzbekistan. I went there to attend a conference on Sustainable Regional Development in Central Asia. Our host was the Samarkand Branch of Tashkent State University of Economics, located in the city of Samarkand.

I must admit that when I received the invitation to be one of the keynote speakers at the conference, my knowledge of Uzbekistan was close to non-existent. I knew that it had once been part of the USSR, and had become an independent country in 1991 following the political break up of the Soviet Union. Apart from that, I did not know much.

When your knowledge is sparse, the internet is your friend. A quick Google search revealed that Uzbekistan is a country of 35 million people in Central Asia. It shares a border with five countries – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Afghanistan. It is also one of only two countries in the world that is double landlocked (the other is Liechtenstein -which I visited in 2018) A landlocked country is one that does not have direct access to an ocean or has a waterway that directly connects it to an ocean. A double landlocked country is one that is surrounded by countries that are themselves landlocked.

Uzbekistan is one of two countries in the world that is double landlocked

Occupied as early as the 8th century BC, the region that comprises modern-day Uzbekistan came under Russian control during the 18th century. The country’s name translates as ‘land of the Uzbeks’. Indeed, Uzbeks (a Turkic ethnic group native to Central Asia) comprise 84% of Uzbekistan’s population. With such an interesting history, and the fact that I had never been to Central Asia, meant that I was really looking forward to visiting this fascinating country.

My journey to Uzbekistan was quite a long one. I flew with Jet Blue from Detroit, MI to Boston, MA, where I connected with a Turkish Airlines flight to Istanbul. In Istanbul, I met up with my colleagues, Tomaz from Portugal, Ana from Spain, and Eduardo and Fernando from Brazil. We were on the same flight from Istanbul to Samarkand. I had left Detroit at 3:28pm on May 2 and, thanks to the combination of long flights and lengthy layovers, did not arrive in Samarkand until 4:10am on May 4 – a total travel time in excess of 27 hours. This was the first time in my life I had taken two back-to-back overnight flights (Boston to Istanbul and Istanbul to Samarkand). Arriving in Samarkand was not the end of my journey, however. The five of us, along with another colleague, Hans from Sweden (who had arrived the previous day) drove to city of Bukhara, a four-hour drive west of Samarkand.

Bukhara is the fifth largest city in Uzbekistan, with a population of just under 250,000. The historic center of Bukhara is a UNESCO World Heritage site. The city is located on the historic Silk Road, a network of Eurasian trade routes which operated from the 2nd century BC thru the mid-15th century. Over two thousand years old, Bukhara is described by UNESCO as “the most complete example of a medieval city in Central Asia, with an urban fabric that has remained largely intact.”

The ancient city of Bukhara
Bukhara at night

After an overnight stay in Bukhara we headed back to Samarkand. With a population of ~320,000, Samarkand is Uzbekistan’s third largest city. Like Bukhara, Samarkand has a rich history. Founded around 700 BC, it is one of the oldest continuously inhabited cities anywhere in the world. Invaded and destroyed by Genghis Khan and his Mongol army in 1200, it was one of the most important stops on 4,000-mile-long Silk Road.

Taking in the sights in Samarkand
Beautiful Samarkand

Although a predominantly Muslim country, alcohol is legal in Uzbekistan. Spirits (particularly vodka) accounts for ~57% of alcohol consumed by Uzbeks, reflecting the recent Russian influence on the country’s culture. Indeed, every evening at dinner, our host made sure that there was a bottle of Uzbek vodka, along with a bottle of Uzbek Cognac, on the table. Both were consumed straight – no mixers required. I usually do not drink vodka or cognac. Indeed, the last time I had consumed so much vodka was on a 2017 trip to Poland.

We had Uzbek vodka every evening with dinner
Uzbek Cognac
The conference dinners were one of the highlights of my visit to Uzbekistan

Beer accounts for approximately 34% of the alcohol consumed by Uzbeks, with wine accounting for the remaining 9%. In 2021, beer consumption per capita was a modest 7.8 liters. This compares with US per capita consumption levels that hovers around 70 liters.

The most common beer I encountered while in Uzbekistan was one called Sabrast. A European-style Pilsner, it is produced in a brewery owned by the Danish brewing giant Carlsberg in Uzbekistan’s capital city Tashkent. I also had the opportunity to try a Russian beer. At lunch, on the drive back from Bukhara to Samarkand, one of my hosts ordered a Baltika 7 for me, a Russian Pilsner-style beer, brewed under license by Carlsberg in Tashhent.

Sabrast – the most common beer I encountered in Uzbekistan
Enjoying a Sabrast beer with my friend and colleague Tomaz at a rooftop bar we discovered in Bukhara
Baltika 7, a Russian beer, with traditional Uzbek bread

While the Uzbek beer market is evolving, and craft beer is gaining in popularity among younger and more affluent beer drinkers, I never saw any while I was there. But perhaps I will on a future visit. I have had the good fortune to visit over 40 countries across 6 continents. Uzbekistan is right up there as one of the most fascinating that I have ever visited. I would love to return one day.