Question Description

The European Union Scientific Committee on Food conducted a study last year, and found that while 

caffeine levels in energy drinks were safe, more studies were needed to assess the dangers of 

taurine and glucuronolactone. 

Ravi and Keith have been contacted by a French beverage firm seeking a joint venture with Zip-6 in 

that country. Since sales of rival Red Bull, according to Nordqvist (2004 ), has been banned in France 

because of health concerns with two of its ingredients, taurine and glucuronolactone; Ravi is viewing 

this proposed joint venture with great interest since Zip-6 does not contain these questionable 

ingredients. Nils noted that France is a member of the European Union (EU) and sees this as 

possibly the next major market for the company. A presence in France would give Zip-6 access to all 

EU countries. This seems particularly promising since France, Denmark, and Norway (all EU 

countries) have banned the sales of Red Bull within their borders. For your Final Project, you are 

asked to assume the role of a Zip-6 analyst that has been assigned the task of researching the 

French beverage market and the European Union trade rules and to prepare the following: 

Using the information you gained from your research in part 1 as a starting point, and any additional 

information you find in Unit 9. 

Checklist: 

 Background of European Union Trade Policies including the history of the European Union, 

political, economic, and cultural factors. 

 Your assessment of the pros and cons of Zip-6’s involvement in this venture and your final 

recommendations. 

Include: Pros and Cons on entry strategy