Purpose – The purpose of this study is to provide insight into customers’ psychological processes and behavioral responses after merger and acquisition (M&A) of an artisanal brand. Design/methodology/approach – Study 1 adopts a qualitative approach to understand how craft-beer customers perceive M&A decisions. In Study 2, a two-conditioned (M&A types: local and local company M&A vs local and national company M&A) between-subjects design experiment was executed. Findings – The findings of this study show M&A’s of artisanal brands cause identity stigmatization, resulting in customers’ identity dissonance and coping strategies. Which coping strategies a customer uses depends on their brand identity, product-category identity and M&A partner types. Research limitations/implications – This was an exploratory study that serves as a starting point for future research. Future research could investigate the model proposed in this study by testing the effects of potential moderators and mediators. Practical implications – The findings of the study enable companies to better anticipate post-M&A customer behavior, thereby enabling them to enhance their brand positioning when a competitor is acquired by a large company. Originality/value – The popularity of locally produced and craft hospitality products has attracted the attention of large companies that acquire artisanal brands. There is a paucity of research investigating postM&A customer reactions of locally owned artisanal companies by large companies.