Wed. May 22nd, 2024

VietNamNet Bridge – At least three big foreign investors have expressed their
intention to become the strategic partners of Sabeco, the biggest brewery
manufacturer in Vietnam. However, they have not been shortlisted.

 

Vietnam, brewery, profit, high growth rate, industry, market share

Looking for a foreign strategic partner has always been a priority work Sabeco
has been focusing since the day it got equitized in April 2008. However, to
date, no foreign investor can enter Sabeco.

Heineken, AB InBev, Sab Miller and Asahi were the names mentioned by local
newspapers at that time when discussing about who would become the strategic
partner to be chosen by Sabeco.

These were the partners which once had meetings with Sabeco right before the
brewery got equitized in an effort to expand their market share in Vietnam.

After getting equitized, Sabeco’s beer products have been holding 46 percent of
the total beer output in Vietnam. However, Sabeco only dominates the market
segment for popular products.

In November 2012, three of the four names appeared on local newspapers again.
They were believed to officially apply for becoming strategic partners of Sabeco
– the Dutch Heineken, Japanese Asahi and the US SAB Miller.

Being a big manufacturer, Sabeco, of course, has set up very high requirements
on the candidates. First of all, the cooperation between Sabeco and the foreign
partner must not create the conflicts to the both parties. The foreign partner
needs to have the strategic benefits coming in line with Sabeco’s development
strategy. In other words, the products of the foreign strategic partners must
not compete directly with Sabeco’s products.

Besides, the foreign partner needs to help the domestic brewery manufacturer
improve the quality and the production capacity.

Sabeco needs the one who not only can help upgrade the technology, improve the
marketing work to expand the market, but also can help manage the cash flow or
draw up reasonable solutions to the real estate products put under the control
of Sabeco.

Meanwhile, all the three foreign brewery manufacturers are believed not to
obtain high marks in terms of helping Sabeco upgrade technology or improve the
sales and marketing capability.

All the three have been making the products which now directly compete with
Sabeco’s products. Moreover, the output of the three manufacturers is far below
that of Sabeco in the Vietnamese market.

Dau tu has quoted an expert as commenting that the same targeted markets and the
same production purposes were the biggest barriers that prevents the cooperation
between Sabeco and the foreign brands.

Heineken, for example, though being the biggest foreign investor in the
Vietnam’s brewery industry, acting as the founding shareholder or capital
contributor to many brewery companies, namely Song Ha Brewery, Dung Quat
Brewery, Quang Nam Brewery, had the beer output equal to 50 percent of Sabeco’s
only in 2012.

Therefore, analysts believe that it would be a difficult task to help Sabeco
develop Sabeco brand, especially when Sabeco and Heineken have been competing
fiercely in the market.

It seems to be even more difficult for Asahi to become the strategic partner of
Sabeco. Asahi brand has been known only in two big cities of Hanoi and HCM City,
while Sabeco products have been available throughout the country. Besides, Asahi
is also a rival of Sabeco in the market which has also been scrambling for
clients with Sabeco.

The same situation has been described for SAB Miller.

The biggest advantage of the three candidates is the experiences in making beer.
And this proves to be not enough to become the strategic partner of Sabeco,
which wants the solutions to the cash flow management or real estate
development.

Compiled by Thu Uyen

By vivian