Japanese beer companies shift attention to Vietnam in effort to boost sales and margins; Vietnamese beer sales will increase 20% to 96T dong this year, Euromonitor International predicts
December 22, 2011
– Japanese beer companies are shifting their attention to Vietnam in an effort to boost sales and margins, Bloomberg reported on Dec. 22.
Japan’s domestic beer sales by volume fell 18% over the past 10 years, leading Japan to look to Southeast Asia to boost sales. Vietnam is attractive to brewers because it offers a chance to tap into a younger market. Additionally, the Vietnamese market offers ease of entry due to the lack of domination by a few major brands.
Euromonitor International predicts that Vietnam beer sales will increase 20%, reaching 96 trillion dong (US$4.6 billion) this year.
Vietnam boasts a population of 90 million people whose average age is 27.8 years. The International Monetary Fund predicts that the Vietnam population will increase by 1.2%, reaching 90.4 million people in 2012.
In 2004, Sapporo, Japan’s oldest brewer, pulled out of China and increased production in Vietnam. Sapporo plans to increase beer production in Vietnam five-fold by 2019.
The average price of beer in Vietnam is €60 per 100 liters. This is significantly higher than China, where the average price of beer is €25 per 100 liters.
Vietnamese prime minister Nguyen Tan Dung said the nation is aiming for 6% growth in gross domestic product in 2012.
The primary source of this article is Bloomberg, New York, New York, on Dec. 22, 2011.