Brasseries Kronenbourg
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INTRODUCTION
Executive summary
December 31, 1992 was the creation of the Single European Market with the removal of all non-tariff barriers and the implementation of mutual recognition: a product approved for import in one member country can automatically be imported in all the member countries. This deregulation was meant to create a large market allowing for increased competition and where companies could benefit from economies of scale to operate more efficiently. However, it also could be argued that this increased market pressure would incite firms to merge in order to reduce competition. Under these circumstances, the ideal case was the homogenisation of the European market, with national firms competing not only at home but also in the other member-countries. Yet, the beer industry is a particular case: it is a very fragmented market on European scale but a highly concentrated one on national scale. Kronenbourg is one of these typical national monopolies in France. The other main players in this market are Socit Franaise de Brasserie - a 100% subsidiary of Heineken - and Interbrew-Stella.
In 1994, Kronenbourg was the beer division of the group Danone. At that time , it had the strong leadership position in the French market, retaining over 40 percent of the market share. Its brands were distributed in 80 countries all around the world...