SABECO fosters sustainable value

Throughout nearly 150 years, Saigon Beer and 333 Beer from Saigon Beer-Alcohol-Beverage Corporation (SABECO) have remained leading brands in Vietnam’s beer market, and now strive to conquer more demanding markets like Germany, the US, Japan, and the Netherlands.

“We take pride in our relentless efforts towards excellence in corporate governance, business efficiency, and product quality. This has been clearly demonstrated through the many awards we have received over the past year,” said Koh Poh Tiong, a member of SABECO’s board of directors, at this year’s annual general meeting.

Photo: SABECO

Tiong stated that to demonstrate SABECO’s commitment to all shareholders, the board of directors proposed a dividend payout ratio of 20 per cent, completing the plan to achieve a total dividend payout ratio of 35 per cent for 2023 as previously set. Additionally, the company successfully issued bonus shares at a 1:1 ratio, further boosting shareholder returns.

The continuous addition of new products to SABECO's portfolio is one result of its commitment to growth and sustainable development. Over the years, the company has constantly innovated to quickly adapt to changing consumer preferences.

Investment activities continue to expand. Specifically, during the 2022-2023 period, SABECO invested in increasing the capacity of the Saigon Beer Quang Ngai Brewery to 250 million litres per year and installed rooftop solar power systems for 17 of its affiliated breweries.

The company also implemented a comprehensive warehouse and logistics project with a total area of 31,000 square meters and a storage capacity of 30,000 pallets, aiming to optimise the storage, preservation, and supply of goods to meet market demand promptly.

Rooftop solar power system at Saigon Beer Quang Ngai Brewery. Photo: SABECO

Commitment and prospects

Based on an analysis of market opportunities and challenges, in 2024, SABECO will focus its resources on brand building and market development activities. This includes developing brand, product, and distribution strategies aligned with consumer trends while restructuring its distribution system comprehensively to a more professional model, enhancing channel and product segment control.

SABECO’s goals are to maintain its domestic market share while expanding internationally, drive research and development efforts to improve product quality, introduce new product lines, and optimise supply chain efficiency across the system.

The company will also concentrate on reforming to increase investment efficiency, reduce operating costs, boost productivity, and develop modern trade channels, online sales, as well as on-the-go and on-site consumption, in line with global trends.

SABECO remains committed to delivering superior product quality, executing strong commercial activities, and pursuing sustainable community development – core principles that guide the company's decision-making and actions.

Amid significant opportunities such as Vietnam’s golden population structure, rising incomes, and the domestic economy’s recovery, as well as global economic forecasts for 2024, SABECO set business targets for this year with net revenue reaching $1.43 billion and profits of $191 million, reflecting respective increases of 13 per cent and 8 per cent compared to 2023.

The company’s key pillars are optimising commercial activities, improving supply chain efficiency, and advancing environmental, social, and governance (ESG) initiatives, which will continue to drive its ambitious goals.

“This year, SABECO’s board of directors established the Sustainable Development and Risk Management Committee to support the management board in implementing ESG initiatives and goals effectively, with risk oversight from the Board of Directors and Audit Committee, ensuring the protection of investor and shareholder interests. We look forward to continued support from shareholders to achieve new heights together,” Tiong said.

Saigon Beer product packaging line. Photo: SABECO

Vietnamese consumers have long been familiar with the Saigon Beer brand of SABECO. The unique taste is a blend of the rich produce of southern Vietnam and the generous, open spirit of the people of Saigon, becoming an indispensable part of the daily lives of Vietnamese people.

From the early days with two products, the 610ml Larue beer bottle and the 330ml 333 beer bottle, SABECO has since expanded its portfolio to 13 products.

With a commitment to sustainable business development, SABECO strives to make positive changes that enhance the reputation of Vietnamese brands while contributing to the community and Vietnam’s development. Its sustainable development model focuses on the key pillars of consumption, conservation, country, and culture.

SABECO kicks off community drive A community scheme, titled 'Sharing Tet for a prosperous Year of the Dragon', kicked off in Binh Duong province on January 6. The initiative comes from Saigon Beer-Alcohol-Beverage Corporation (SABECO) and the Ho Chi Minh Communist Youth Union (HCYU).

SABECO realising ESG ambitions Business activities from Saigon Beer Alcohol Beverage Corporation, known as SABECO, are associated with and promote the implementation of environmental, social, and governance goals and related responsibilities, contributing to building a prosperous and sustainable Vietnamese community.

SABECO leads startup magic More than 300 young businesses and rural youth have found support for their startup models through a series of training programmes jointly organised by the Ho Chi Minh Communist Youth Union and Saigon Beer-Alcohol-Beverage Corporation.