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.