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From Local to Global Competitors on the Beer Market

Erik Strøjer Madsen ()
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Erik Strøjer Madsen: Department of Economics and Business Economics, Aarhus University, Postal: Department of Economics and Business Economics, Aarhus University, Fuglesangs Alle 4, DK-8210 Aarhus V

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: Liberalization of trade has been high on the political agenda after the Second World War. First through the international corporation in GATT and WTO and later the creation of the internal market in Western Europe and the opening up of Eastern Europe and China. The breweries respond to these changes in institution by a global M&A strategy and the following concentration of ownership among breweries increased the large breweries’ global market share dramatically. Why does this concentration in ownership take place, and was there some pay off to the breweries of this strategy? We will examine the market power hypothesis, how the increasing concentration has affected the growth of global brands and the beer prices. First, we examine where the increasing global concentration is reflected in a concentration of ownership in local markets. Next, we examine the effects of ownership concentration on the level of beer prices. Finally, we examine the effects of the global ownership on the market share of the global beer brand.

Keywords: Branding; Brewing industry; Global market power (search for similar items in EconPapers)
JEL-codes: L11 L66 M37 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind and nep-int
Date: 2019-08-20
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2019-11

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