Beer consumption overflows

Four breweries with a combined capacity of 350 million litres per year began operations in the last 10 months.

Sai Gon Brewery and Beverage Co (Sabeco) opened the Sai Gon-Phu Ly Brewery in May 2010 and its Sai Gon-Song Lam Brewery and Sai Gon-Quang Ngai Brewery in June, all with a capacity of 100 million litres per year.

Ha Noi-Vung Tau Brewery Co, a joint venture between the Denmark-based Carlsberg and State-owned Ha Noi Beer and Beverage Corp (Habeco), opened a brewery in Ba Ria-Vung Tau last month.

The $42 million unit can produce 50 million litres of Ha Noi and Carlsberg beers annually, and will double its capacity later.

Andre Van Den Berg, general director of the brewery, has said it will supply high-quality Ha Noi and Carlsberg beers in the south to enable a stronger presence for both brands in this market.

According to figures from the Ministry of Industry and Trade, 2.38 billion litres of beer was consumed in Viet Nam last year, 19.8 per cent up from 2009. It is expected to reach 2.8 billion litres this year.

Sabeco and Habeco hold 35 per cent and 20 per cent, respectively, of the country’s beer market, according to the Viet Nam Beer, Alcohol and Beverage Association.

Nguyen Quang Minh, general director of Sabeco, says in 2010 Sabeco’s total production reached 1.1 billion litres of 333, 333 Premium, Sai Gon Export, Sai Gon Lager, and Sai Gon Special beer brands, an increase of 21 per cent over 2009.

“We expect to see 20 per cent growth rate in 2011.”

Habeco produced around 600 million litres in 2010, a year-on-year increase of 31.6 per cent.

Of the other brewers, Heineken produced 400 million litres and Tiger, 300 million litres.

“Viet Nam is one of the largest beer markets in the Asia-Pacific and has the highest growth potential,” Christopher Kidd, regional director of Singapore-listed Asia Pacific Breweries Ltd, which makes Heineken and Tiger, says.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa says the beer market is set to become more and more competitive as more companies enter the fray. Beer brands recently finding their way into Viet Nam include Budweiser, Sapporo, San Miguel, and Foster.

Tags: Vietnam beer consumption