With over 8 million hectoliters sold per year and nearly 32% of the market shares, ‘Brasseries Kronenbourg' or the Kronenbourg Brewery occupies the leading position in the beer sector in France and plays a pivotal role globally.
We decided to study the mode of operation followed by this company for several reasons: the image conveyed by the brand from the perspective of the consumers is positive. In addition, beer lovers profess a general liking for Kronenbourg beer and this common interest in beer led us to analyze the company more closely.
In 2008, Kronenbourg registered a turnover worth nearly 897 million Euros, employing 1,650 people. Our project also focuses on the growth opportunities, threats, weaknesses, and the strengths of the brewery. Its legal structure, analysis of the results and the strategy used is also addressed in this project. This project also examines the various tools that have enabled Kronenbourg Breweries to become a major beer entity, as well as the points of excellence, weaknesses and prospects of this company.
To begin, we will specifically study the company and its organization, its products and its legal structure. We will then discuss the internal and external environment of the company, i.e., its strengths, weaknesses, threats and opportunities. Then we will focus on its strategy and business objectives and conclude with an analysis of its results to see whether the strategy used is fulfilling the objectives.
Brasseries Kronenbourg was founded in 1664 in Strasbourg by Geronimus Hatt; he originally named it as the Hatt Brewery as he wanted to manufacture and sell his own beer. In 1922, the Hatt Brewery's name was changed to “Tigre Bock” and it was at the time the leading brewery in Alsace under the instigation of Jerome Hatt.
In 1947, Kronenbourg launched the first can of 33cl, followed by its first container in 1953, and subsequently the first pack in 1963. In 1959, Kronenbourg entered the German, Swiss, Belgian and Italian markets, achieved resounding success in these markets by 1969 and built the largest brewery in Obernai.
A turning point occurred in 1970 when Danone bought Kronenbourg as well as the European Company of the Brewers (Kanterbrau). In 1986, Kronenbourg merged with Kanterbrau SA to become "The Kronenbourg Breweries". In 1996, to add value to its offer, the Kronenbourg Brasseries acquired stores which joined together in a sales network called the Elidis beverage services.
A new twist appeared in 2000 when the British company Scottish & Newcastle acquired Kronenbourg for £1.7 billion. Hence the Scottish & Newcastle became the number four European brewer, and number seven in the world. Its portfolio brings together big brands including the white, brown alcohol, and even drinks like shandies (a drink made of beer and lemonade) and cider (a fermented beverage made from apple juice). This company owns 16 brands in total: Kronenbourg, Kanterbrau, Gold, Bruges, Wel Scotch Wilfort, Force 4, Tourtel, Grimbergen, Beamish Stout, Beamish Red Irish Ale, Carlsberg, San Miguel, Strongbow and Foster's.
Tags: Elidis beverage services, distribution strategy of Kronenbourg Brewery, Beer industry in France
[...] 90% of the employees of Kronenbourg are willing to invest beyond the missions of their position. Finally, we note that the Kronenbourg group is facing many difficulties, particularly as the external environment (unfavorable) presents more threats than opportunities. Although from an internal point of view the group appears to have much strength, it still presents some weaknesses. The clearest example is the loss of over $ 1.2 billion in two years of turnover. Given this record, we must react, and we will now discuss the economic strategies used by the brand. [...]
[...] Place / Distribution Distribution is an important asset in the control of a market. A market study on the distribution of beer showed that the distribution channel in France outside CHR (cafe-restaurant) represents only 28% of sales (by volume). However the brewers' margins are higher with the CHR, such as GMS (Large and medium size) which tend to lower prices by varying the amount sold. Indeed, the latter still sell 40% of volumes. Finally, hard discount accounts for about 12% of the volumes distributed. [...]
[...] Thus, Brasseries Kronenbourg will need to keep an eye on the weather, both because it has a strong impact on the process of beer production, and because it plays a dominant role over the desire of the consumer to choose this drink to quench their thirst. The market The beer market is a mature market, in which there has even been some decline. The fact is that it is difficult for companies that share in this market to maintain their market share and continue to grow. [...]
[...] Two months after the launch of Kronenbourg - Selected by Brewers Retail, Kronenbourg welcomed its success with a weekly increase on market share by volume, of nearly in the Hypermarket / Supermarket segment, just weeks after its launch. In supermarkets, Kronenbourg - Selection of the Brewers was already established in its three formats (packs and bottles 10x25cl 20x25cl + pack 6 boxes 33cl), and in more than 80% of hypermarkets and supermarkets by late March. This was achieved only eight weeks after the launch of a strong marketing effort of the brand in April. [...]
[...] One cannot speak the risks of Brasseries Kronenbourg as it is a huge company and also because it is not directly competing with the respective beer markets Its products Products belonging to the Kronenbourg brewery have steadily increased as a result of recovery and innovations. It is advisable to study the support systems and the ones that are likely to slow the success of the brand beers are managed by the company: Kronenbourg beer: Kronenbourg, Kronenbourg Pur Malt (no alcohol, it results from selected malts and a slow fermentation), Kronenbourg Extra Fine, Mixed Kronenbourg, Kronenbourg Red Kronenbourg Alsace beers: The White Malt of Exception Grimbergen beers: Grimbergen, Grimbergen Cuvee Blanche, Grimbergen Cuvee Amber Kanterbrau Gold beer Brugs (white beer) Wel Scotch (beer by Kronenbourg) Force 4 (lend of beer and lemonade) Foster's The Tourtel Low Alcohol beer of Heineken) The beers managed in partnerships are: Beamish Irish Stout and Beamish Red Irish Ale Budweiser Carlsberg San Miguel Strongbow Guinness It raised its beer productivity and encountered a greater success when compared to the others, having a majority of sales of over Legal Structure: Simplified joint-stock company (SAS) Company Snapshot: Breweries Kronenbourg (CO.) Identity/Business Name Brasseries Kronenbourg Acronym BK Legal form SAS Share capital 547891076 EUR Company Registration Number Registration 06/1985 Activity (EPA) 1105Z - Manufacture of beer / food industry Staff number 1570 employees Establishments 4 Recent collective procedure No Financial Information ending on: Contact Details Address ROUTE 68 Oberhausbergen 67037 STRASBOURG P.O. [...]
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