European Comission defended the Balaton snack

By: trademagazin Date: 2007. 11. 13. 00:00

Kraft Foods is set to take an even larger share of the EU snack market after receiving conditional approval by the European Commission to purchase the biscuit, cereals and snack division of Danone.

Currently, Danone only sells chocolate confectionery on a national basis with
brands like Cha-Cha in Belgium and Balaton in Hungary. 
Kraft by comparison, is present throughout the Bloc with its chocolate brands,
which include Milka, Côte d'Or, Toblerone, Suchard and some other locally sold
products.
In combining these operations, the Commission found that the transaction threatened
to impede competition in the Hungarian chocolate market unless some actions
were taken by Kraft. The company agreed therefore to divest the Balaton brand
in the country.
With the acquisition, Kraft will also gain access to
critical emerging markets such as China, Russia, Poland, Indonesia and
Malaysia, which will account for 25 per cent of business.

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