Beer market shows bubbly prospects

July 09, 2014 | 14:29

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Japanese beer-maker Sapporo plans to more than double its production capacity in Vietnam, said Hirofumi Kishi, general director of Sapporo Vietnam Ltd.

Sapporo Vietnam illustration photo

The firm intends to ramp up its production line from an output of 40 million litres to 100 million per year.

Kishi also reported that Sapporo plans to further develop its distribution network in Ho Chi Minh City and the rest of the southern region before expanding to Hanoi, but did not disclose the total amount of the investment. He added that Sapporo will target the high-end segment and projects 200 per cent sales growth in 2014.

Vietnam is among the top 25 countries in the world in terms of beer consumption, with more than 3 billion litres in 2013. Kishi noted that this is likely to grow by at least 10 per cent in 2014.

Many brewers in Vietnam are expanding production to take advantage of its fast growing market. Sabeco, which currently holds a 44 per cent domestic market share, recently broke ground on a new factory to expand its output to 2 billion litres a year. Habeco also plans to expand its operations this year.

Foreign beer producers are following suit. Anheuser-Busch InBev announced its plans to build a brewery in the southern province of Binh Duong that will make its Budweiser brand. A number of other foreign brewers, including China’s Tsingtao, the Netherlands’ Heineken and Singapore’s Tiger, are increasing their exports to Vietnam.

By By Bao Giang

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