Heineken Purchases Brewery In Vietnam From Carlsberg

Wednesday, September 7th, 2016 | 615 Views

Dutch brewing company Heineken has purchased a brewery in Vietnam from Carlsberg for an undisclosed amount.

Acquisition of the brewery, located in the southern Vung Tau province, is part of Heineken’s expansion plans to meet market demand in the Southeast Asian country.

Originally a joint venture between Carlsberg and the Hanoi Beer-Alcohol-Beverage Corporation (Habeco) in 2008, the brewery became Carlsberg Vietnam in 2014. The brewery will be renamed Heineken Vietnam Brewery Vung Tau.

Vietnam’s beer market is less dominated by local brewers; an attractive prospect for international companies. Local brewers in Vietnam took up 63 percent of local market share in 2015, compared to other Asian cities like Japan and Thailand, where home-grown brands took up around 90 percent of volume.

Heineken Vietnam Brewery has four other breweries in Vietnam, namely in Ho Chi Minh City and the provinces of Da Nang, and Quang Nam and Tien Giang. The world’s third-largest brewer, Heineken recently announced that Vietnam is among three Asian markets with potential for outstanding growth, joining Cambodia and Indonesia.

Vietnam’s citizens of legal drinking age, 18 and above, is expected to increase to 72.4 million by 2021 from 68.7 million this year, according to Euromonitor International.

Beer consumption in the Southeast Asian country grew about 40 percent in 2015 from 2010, according to the Vietnam Beer Alcohol Beverage Association. Vietnamese drinkers are projected to consume more than 4.04 billion litres of beer this year, the most in the region, an increase from 3.88 billion litres in 2015. Additionally, sales volume of beer is likely to reach five billion litres by 2025.