Vietnam: Strong competition expected on beer market this year

Vietnam's beer market is set for an eventful year as new brands hit the domestic market while beer producers in Vietnam invest in expanding their market share, Thai Press Reports Via Thomson Dialog NewsEdge reported February 26.

Construction of a plant producing Kronenbourg beer is planned to start in March in Long An Province. The plant, a joint venture between Vietnam Tobacco Corporation (Vinataba) and Scottish and Newcastle Group, will be able to produce 150 million litres each year. Each partner holds half of the plant's total investment of US$75 million.

Patrick Dougan, general managing director of Vietnam Kronenbourg and development director of the company's Asia-Pacific arm, said Scottish and Newcastle Group has carefully carried out market research in Vietnam.

The domestic beer market has an annual growth rate between 9 to 11 per cent and already enjoys fierce competition with many well-known beer brands, including Sai Gon, Hanoi, Tiger and Heineken, said Dougan.

Forge valuable relationships at The World's Only IP Communications Development Event. Communications Developer Conference is May 15-17, 2007 in Santa Clara.

Vietnam has 300 plants producing beer and alcohol products. Some of them have boosted expansion of production, including Sai Gon Beer, Alcohol and Beverage Corporation (Sabeco) and Vietnam Beer Company.

Sabeco has 10 projects on expanding production, boosting co-operation in production and building new factories in provinces and cities, including Cu Chi District - Ho Chi Minh City, Vinh Long Province and Dung Quat - Quang Ngai Province.

The company expects to increase its total annual capacity to 800 million litres of beer in 2009. Sabeco has recently launched the Irish black beer brand Guiness with production of the new brand set for Sabeco's factory in Binh Duong Province from June, said a Sabeco official.

In addition to buying foreign beer brand franchises, Sabeco has co-operated with Asahi, a Japanese leading beverage producer.

Asia Pacific Breweries Limited (APB) has registered to increase its Ho Chi Minh City-based Vietnam Beer Factory's total annual capacity of beer from 150 million litres to 230 million litres.

The APB is carrying out its plan on expanding production by co-operating with Quy Nhon Beer Company to boost the company's annual capacity from 20 million litres to 100 million litres and to make beer for the region with Quang Nam Beer Company, which has an annual capacity of 25 million litres.

Last October, APB took control of beer factories in Da Nang and Tien Giang and trade marks of BGI, Larue, Larue Export and Larue Superior, owned by Foster's Group in Vietnam under an agreement signed between Foster's and APB two months ago. Under the agreement, APB is solely responsible for producing, packaging, distributing and trading of Foster's Lager Beer in Vietnam. - VNS
v

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .