Foreign brewers are heating up local alluring beer market

By Nga Vu - Aug 05, 2017 | 07:55 AM GMT+7

TheLEADERWith the total consumption of about 3.78 billion liters of beer in 2016, Viet Nam is considered as "the next key battleground of foreign brewers”. The divestment at the State’s two largest domestic beer companies leaves “wide open” door for foreign rivals and that a Taiwan brewer plans to enter Viet Nam’s market heats up the competition.

Foreign brewers are heating up local alluring beer market
​A promising beer market for big foreign brewers. Photo: Internet

A promising beer market for big foreign brewers.

According to newswire Enternews, Taiwan Tobacco and Liquor Corporation (TTL), the leading and largest tobacco and liquor company in Taiwan, plans to join in the Vietnam’s market in next October.

Accordingly, three beer brands will be introduced in Vietnam, including Golden Medal Taiwan Beer, Taiwan Beer Sweet Touch, and especially pineapple-flavored beer. The fruit-flavored beer products, which have never appeared in Vietnam market before, is expected to become popular and favorite, said Chang Lei-min, Vice Chairman of TTL.

Besides the plan on exporting 38 million liters of beer a year in Vietnam, TTL also intends to hire a Vietnamese brewery to manufacture its products and build its own brewery in Vietnam later on. TTL also expects to hold 1 per cent of the market share within three years, Chang added.

Before TTL, numerous foreign brewers also expressed their interest in the Vietnamese beer market.

Recently, Carlton & United Breweries (CBU) Carlton and United Breweries (CBU), one of Australia's famous brewery, expressed its desire to acquire stakes at Sabeco and Habeco. Accordingly, CUB plans to expand its operations in Binh Duong province and expects to become a strategic investor of both Habeco and Sabeco.

In February 2017, Heineken Vietnam Brewery Vung Tau JSC (Heineken Vietnam) received the investment certificate for its project on the expansion of beer factory with capacity up to 610 million liters of beer a year and total investment capital of US$185 million.

In January 2016 Carlsberg Vietnam Breweries Co., Ltd spent EUR6.4 million on investing in a fourth canning line in its Hue beer factory in Thua Thien-Hue province, raising Carlsberg’s capacity in central Vietnam to 370 million liters a year. Furthermore, Carlsberg plans to spend VND450 billion (roughly US$19.7 million) on marketing its Tuborg beer product in Viet Nam.

In May 2015, Anheuser-Busch InBev (AB InBev) entered Vietnam with the opening of its VND660-billion (equivalent to US$30 million) factory with a capacity of 100 million liters of beer a year in Binh Duong province.

Some possible changes in market share

In recent years, numerous international beer brands have taken part in the Vietnam’s market, making the competition fiercer. Currently, over 30 international brewers are present in Vietnam.

Four big breweries, including Habeco, Hue Brewery (Carlsberg), Sabeco and Heineken is ruling Vietnamese beer industry with 90 per cent of beer consumption, 60% of which is held by Sabeco and Habeco. This explains the reason why foreign brewers always eyes on stakes of both Sabeco and Habeco when the two companies are under capital divestment process.

The Vietnam Beer Alcohol Beverage Association (VBA) said that the Vietnamese beer market may see some new waves, especially after the state divestment at Sabeco and Habeco is finished. Then, any foreign brewer, which acquires Sabeco’s stake will have strategies to wave the beer market.