SABECO’s sustainable development combines with environmental protection

On May 15, 2023, the brewer signed an agreement with Singapore Power Group to implement Phase 2 of its rooftop solar power project at breweries in Cu Chi, Lam Dong, Ha Tinh, Hanoi, Tay Do, Vinh Long, Nguyen Chi Thanh, Bac Lieu, and Quang Ngai, with the highest capacity of up to 10.44 MWp.

The project is expected to move into operation by the end of the third quarter, raising the total number of factories using solar energy to 17. They are estimated to meet nearly 23 per cent of the electricity consumed at all factories and save 25 million kWh of electricity, equivalent to 18,000 tonnes of CO2 cut each year.

The project will contribute significantly to the SABECO’s net-zero emissions target by 2050.

In Phase 1, SABECO spent more than VND107 billion ($4.5 million) for rooftop solar power systems with a maximum capacity of 9 MWp at factories in Cu Chi, Dak Lak, Phu Yen, Quy Nhon, Song Lam, Khanh Hoa, Can Tho, Soc Trang, and Ben Tre.

At its 2023 AGM, SABECO announced a combination of environmental, social, and governance (ESG) initiatives for all stakeholders to understand clearly and take action.

CEO Bennett Neo said that SABECO is aiming for sustainable initiatives and solutions to ensure long-term growth goals.

“In recent years, we have implemented various ESG initiatives across our sustainability pillars of consumption, conservation, culture, and country. We always adhere to a sustainable development mindset in all production and business activities in accordance with the corporation’s vision, while also contributing to Vietnam’s green growth goals for the decade," Neo said.

For other businesses, marketing costs can be expenses, Neo said, but this is an investment for both the short- and long-term values of SABECO.

“If we become a strong enough brand, SABECO will not need to bring products to consumers, but consumers will find these products themselves, distribution agents will come to the company, and sales staff will feel more motivated and confident to sell,” Neo added.

Thanks to these solutions, 2022 was a relatively successful year for SABECO with almost VND35 trillion ($1.4 billion) in revenue, an increase of 32.6 per cent; and VND 5.5 trillion ($224 million) in after-tax profit, an increase of 40 per cent on year.

Of which, the gross profit margin improved from 28.8 per cent to 30.8 per cent, a record high profit for SABECO, despite the impact of rising input costs.

Start unlocking since 2022

Phase 2 of SABECO’s business transformation in 2022 featured several strategic pillars: sales, brand, marketing, producing, supply chain, people, and unlocking. These pillars have been strongly supported by the SABECO 4.0 model as well as strong governance.

Also in 2022, SABECO began implementing various medium- and long-term strategic investment initiatives to unlock and maximise value, potential of assets, processes, and structures of the corporation.

In 2023, SABECO sets a business plan with VND 40.27 trillion ($1.6 billion) in net revenue, an increase of 15.1 per cent, as well as VND5.8 trillion ($236 million) in after-tax profit, an increase of 5 per cent on-year.

SABECO believes that the trend of near-premium beer will continue to rise. However, the shift to lower consumer segments after the pandemic may impact 2023’s revenue.

However, 2023 has marked a golden opportunity for Vietnam's beer industry with its population structure, rapidly increasing income, great potential of the non-alcoholic beer segment, and high-potential export markets.

SABECO is set to focus resources on brand building and market development activities, including building brand, product, distribution, and consumption strategies in accordance with consumption trends. This will be carried out in parallel with comprehensively structuring the distribution system in a professional direction, enhancing efficiency, and supporting control by channel and product segmentation.

In addition, the corporation will continue to maintain the domestic market, reach out to the international market, strengthen R&D to improve product quality and launch new products, and apply digitalisation in both management and business.

In addition, SABECO will reform to increase investment efficiency, reduce operating costs, increase productivity, develop modern trade channels and online sales following global trends, and build a solar energy system to improve electricity supply in a cost-effective and highly effective manner.

Across 148 years of development in the beverage manufacturing industry, SABECO has cemented its position as one of the top corporations in Vietnam with 26 factories, 11 member trading companies, and a network of more than 100,000 sales points across the country.

In addition to constantly improving product and service quality, SABECO also often launches new designs and packaging, and renewing traditional product lines.

SABECO currently delivers a portfolio of beer brands loved by Vietnamese consumers such as Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager, and Bia Saigon Gold.

Vietnam’s golden superstars supported through SABECO Saigon Beer-Alcohol-Beverage Corporation and its branding Bia Saigon are not only offering financial assistance for athletes to compete in major events, but also help to conduct a number of community-building initiatives for Vietnamese sports.

Marking SABECO’s journey towards global credibility Inheriting values with a history of nearly 150 years while striving to innovate and improve the quality of beer, Saigon Beer-Alcohol-Beverage Corporation is steadily moving towards a new chapter in the journey of positioning Vietnam on the global beer map.

SABECO in Forbes top 50 listed companies On June 5, Forbes Vietnam unveiled the top 50 listed companies in 2023, including SABECO (Saigon Alcohol, Beer and Beverages Corporation), a leading brand name in the Vietnam beer industry.