The making of a 145-year-old brand

Sabeco is not resting on its laurels and will continue to push the quality of Vietnamese beer

From a small production origin, after years of development Sabeco has now achieved two billion litres of output with more than 145,000 product consumption channels nationwide.

In 1875, Frenchman Victor Larue opened a small brewery in Ho Chi Minh City. After the national reunification in 1975, the factory was managed by Southern Brewery Company and renamed itself as Bia Saigon Factory in 1977 to then officially became Saigon Beer Company in 1993.

From a small production origin, after years of development Sabeco has now achieved two billion litres of output with more than 145,000 product consumption channels nationwide.

Today, the company’s network includes 26 subsidiaries and 18 associates and joint ventures, with more than 145,000 product consumption channels spanning across the country.

Many important milestones by Sabeco have accompanied the country’s progressive development (see chart). Today, the company has put tremendous effort in upgrading its production as well as improving its business operations to become a successful business, solidifying its position as the pride of Vietnam.

For the last three years, Sabeco has been maintaining the leading position in the top 50 listed companies in the stock market as voted by Forbes Vietnam; the top 50 most effective companies in Vietnam; and is also one of seven representatives of Vietnam on the list of Asia’s best billion-dollar enterprises.

Rejuvenation of brands

One of Sabeco’s most iconic products is the Bia Saigon brand, which has charmed generations of Vietnamese. The product that carries the familiar name of Ho Chi Minh City has placed its own distinctive mark in the country with the development of several unique products such as Bia Saigon Lager, Bia Saigon Export, and Bia Saigon Special in various sizes of cans and bottles.

Meanwhile, Bia 333 has conquered the heart and flavour of Vietnamese beer lovers because of its distinct aroma and well-rounded taste with an original recipe from France. Over many generations, Bia 333 has gradually become an indispensable drink on the dining table of Vietnamese people. Not only a favourite of indigenous people, Bia 333 is also among the first domestic beer brands to be exported to 18 countries, including fastidious markets such as Japan, Australia, Germany, the Netherlands, and the United States.

Most recently, Sabeco beat strong candidates from countries around the world to win the gold medal in the International Smallpack Lager Competition, Class 1 category at The International Beer Cup 2019. It also won a gold medal in the German Heritage category at the International Beer Cup.

“Our products, which have been delighting Vietnamese people with a fresh and unique taste, also reflect the spirit on pursuing continual improvement and growth originating from Vietnam,” said Bennett Neo, general director of Sabeco. “I am incredibly proud of our colleagues bringing pride to the company and the people of Vietnam. To be honoured with this prestigious gold medal is powerful evidence not only of our beers’ exceptional high quality, but also the world’s recognition on the modern progress of Vietnam’s brewing industry.”

While traditional recipes that bring out great tastes are definitely one of the signatures of Sabeco products, the company has also been focusing on ensuring the brands capture the heart and spirit of the Vietnamese, especially consumer optimism and rising expectations for excellence today.

With endless efforts, Sabeco is making significant inroads with brand rejuvenation for the future. Last year, the group announced the rejuvenation of its flagship Bia Saigon brand and Bia 333 as part of its long-term strategy to cement the company’s leadership position in the market.

Accordingly, the new logo of Bia Saigon products has been redesigned with the centrepiece as the sacrosanct dragon. The refreshed design has helped Sabeco not only honour the favourite taste of consumers for over a decade, but also reaffirmed that Sabeco will continue to inherit, preserve, and develop the legendary flavour of Vietnamese beer in the years to come.

Following the success of Bia Saigon’s relaunch, in November last year, Sabeco introduced new packaging for Bia 333, with the redesigned logo bringing a breath of fresh air, reflecting openness and individualism yet retaining the long-standing brand heritage. Staying true to its motto of “Open up to the world, yet remain true to itself”, the new packaging embraces the ruby red tone that reminds drinkers about its heritage, but still evokes a modern feeling.

In addition, three new symbols were added to the packaging which have represented three credentials from the origins of Germany, France, and Vietnam. The refreshed design has helped Sabeco not only honour consumer tastes for over a decade but also reaffirmed that Sabeco would continue to inherit, preserve, and develop the legendary flavour of Vietnamese beer in years to come.

A shared vision

Over past years, Sabeco has been carving a firm niche in the domestic beverage market, with it growing from strength-to-strength via well-known products taking the lead in the market, even in the context that the beer industry has been affected by the implementation of a new decree implementing a zero-alcohol tolerance policy while operating a vehicle.

Sabeco expects it will take some time before fortunes improve. In the meantime, the largest beverage firm will focus on weathering through the storm, and is fully prepared to make hay when the sun shines again, according to its annual report released last month.

In the report, Bennett Neo also shared about the company’s continual transformation journey towards achieving greater success. In particular, he shared that “good-to-great” transformations do not happen overnight; rather it is a process resembling relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and beyond.

“Moving an inch at a time, a turn at a time, momentum will be gathered and eventually the flywheel will move with great ease and speed. We are still at the initial stage of transformation and have turned the wheel, and we will continue to pursue this,” Neo explained.

Indeed, over the past two years, Sabeco has implemented numerous operational and strategic initiatives, including but not limited to improving margins by keeping costs and expenses in check while increasing selling prices; raising public awareness of new packaging as part of Bia Saigon and Bia 333 relaunches; strengthening the corporation’s competitive advantages by increasing stakes in associates; applying IT to transform the way of working for the Sabeco system as a whole; and also brewery expansion.

At the same time, the group has also strived for higher corporate governance standards and rolled out a reasonable, performance-based compensation structure for our employees, all in all to gradually realise its vision of becoming the leading beverage corporation in Vietnam and having a strong presence in international markets.

Further, in order to ensure sustainable growth, Sabeco’s business model is based on upholding its brand values and continuing to be seen as the pride of Vietnam, guided by its four commitments of consumption, conservation, country, and culture – the pillars that represent Sabeco’s long-term strategic focus.

As Vietnam is gradually recovering from the COVID-19 pandemic, the group is also making progress to improve and enhance its businesses.

To adapt to the new normal, Sabeco is exploring new initiatives to respond to changing consumer behaviour, like increasing its online presence and off-trade marketing.