Thai-owned Sabeco aims to conquer half of Vietnam’s beer market

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Vietnam’s largest brewer, Saigon Beer Alcohol Beverage Corp., or Sabeco, after its acquisition by Thai Beverages has set a target to grow its share of the home market from around 40 per cent to at least 50 per cent in the coming years supported by the new owner’s tight retail network, company executives said at a presentation on January 12 in Ho Chi Minh City.

This year, the company aims to lift its domestic market share to 42 per cent and boost output to 1.84 billion liters, up from 1.78 billion liters in 2017. In 2019, the two-billion-liter threshold should be reached. Revenue targets for this year are 39.3 trillion dong ($1.73 billion), and net profit is expected to reach 4.9 trillion dong ($215.7 million), year-on-year increases of 11 per cent and two per cent, respectively.

Sabeco held its first corporate meeting after the $4.8-billion acquisition in order to draw up a future strategy for the company.

Plans are that Sabeco products, which include Bia Saigon Special, Export and Lager, Saigon Gold and 333 Export, will be delivered all across Vietnam, leveraging the Thai group’s existing retail network of supermarkets and convenience stores in the country. This should also help Sabeco to expand beyond beer into the soft drinks and spirits markets.

Sabeco’s beers could also be distributed in other regional markets such as Thailand and Singapore on the back of the Thai group’s hotel network.

Saigon Gold is the latest product line launched by Sabeco, aimed at stepping into a premium segment currently dominated by foreign brands like Sapporo, Heineken, Tiger and Budweiser. The brand name seems to have been inspired by the inauguration of Beer Lao Gold, a premium beer introduced in 2010 by Carlsberg-co-owned Beer Lao Brewery in Vientiane.

The 333 Export brand, in turn, is the successor of the original 33 Beer, a rice beer first produced in the early 1900 after German recipes in what was then French Indochina. It became popular among American GIs during the Vietnam War in the 1960s and 1970s and subsequently entered the US market in 1994, which is where more of it should go, Sabeco believes.

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Reading Time: 2 minutes

Vietnam’s largest brewer, Saigon Beer Alcohol Beverage Corp., or Sabeco, after its acquisition by Thai Beverages has set a target to grow its share of the home market from around 40 per cent to at least 50 per cent in the coming years supported by the new owner’s tight retail network, company executives said at a presentation on January 12 in Ho Chi Minh City.

Reading Time: 2 minutes

Vietnam’s largest brewer, Saigon Beer Alcohol Beverage Corp., or Sabeco, after its acquisition by Thai Beverages has set a target to grow its share of the home market from around 40 per cent to at least 50 per cent in the coming years supported by the new owner’s tight retail network, company executives said at a presentation on January 12 in Ho Chi Minh City.

This year, the company aims to lift its domestic market share to 42 per cent and boost output to 1.84 billion liters, up from 1.78 billion liters in 2017. In 2019, the two-billion-liter threshold should be reached. Revenue targets for this year are 39.3 trillion dong ($1.73 billion), and net profit is expected to reach 4.9 trillion dong ($215.7 million), year-on-year increases of 11 per cent and two per cent, respectively.

Sabeco held its first corporate meeting after the $4.8-billion acquisition in order to draw up a future strategy for the company.

Plans are that Sabeco products, which include Bia Saigon Special, Export and Lager, Saigon Gold and 333 Export, will be delivered all across Vietnam, leveraging the Thai group’s existing retail network of supermarkets and convenience stores in the country. This should also help Sabeco to expand beyond beer into the soft drinks and spirits markets.

Sabeco’s beers could also be distributed in other regional markets such as Thailand and Singapore on the back of the Thai group’s hotel network.

Saigon Gold is the latest product line launched by Sabeco, aimed at stepping into a premium segment currently dominated by foreign brands like Sapporo, Heineken, Tiger and Budweiser. The brand name seems to have been inspired by the inauguration of Beer Lao Gold, a premium beer introduced in 2010 by Carlsberg-co-owned Beer Lao Brewery in Vientiane.

The 333 Export brand, in turn, is the successor of the original 33 Beer, a rice beer first produced in the early 1900 after German recipes in what was then French Indochina. It became popular among American GIs during the Vietnam War in the 1960s and 1970s and subsequently entered the US market in 1994, which is where more of it should go, Sabeco believes.

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