SABECO Striving to Promote the Trademark

On the way to integrate into the world market, foreign beer products are flooding into Vietnam. However, SABECO has remained number one in the local beer sector, accounting for 35 per cent of the country’s market share. Currently, SABECO owns brands of Saigon Beer, Beer 333, "Saigon- 333; Symbol for Gold Dragon”. In the trend of current development, SABECO has attained remarkable achievements during the implementation of the 2006 – 2010 plan. Industrial production value has reached VND22.176 billion, up 13.46 per cent/year. Beer output reaches 2,479 billion litres, up 11.67 per cent annually; consumption output 3.95 billion litres, up to 16.46 per cent per year. Wine output is estimated at 24.26 million litres , up 62.78 per cent per year, consumption output at 24.01 million litres, up 61.75 per year. Beverage output has reached 197 million litres, up 2.12 per cent per year; consumption output at 197 million litres, up 2.69 per cent. Total revenue was estimated at VND52.301 billion, up 21.65 per cent per year; paying VND16.474 billion in tax, up 10.46 per cent annually.

    

With the plan to expand production capacity and market, SABECO has invested in raising the capacity of 7 existing factories while building 10 new ones with a total capacity 800 million littres higher than the level of 2005. It has built large beer companies in Saigon: Cu Chi Beer Factory with a capacity of 200 million litres early this year, Saigon-Quang Ngai Beer Factory of 100 million litres by the end of this year, Saigon-Song Lam Beer Factory with an expected capacity of 100 million liters by late 2010. SABECO expects to gain total beer capacity of between 1.3 – 1.5 billion litres in 2010.

 

The wine and alcohol production sector has also made considerable achievements thanks to investing in a refined alcohol plant with a capacity of 4.5 million litres per year and two dehydrated alcohol and raw alcohol plants with an annual capacity of 16 million litres.

 

SABECO’s key beverages affiliate, Chuong Duong Beverages Factory, is proposing the government to stabilise the operation of the relocated factory.

To maintain its leading position, SABECO will implement the five-year plan between 2011 and 2015, with the focus on the firm’s major activities. Under the plan, the company will raise its key products’ quality, building brands for its potential product of wine, particularly nutritious wine. The company expects annual growth of 14 – 16 per cent in the 2011 – 2015 period and beer output of US$1.8 billion in 2015, up 11 – 13 per cent per year.

   

 To achieve the goals, SABECO has worked out strategies to build and develop the trademark attached to business and marketing activities. It will recruit a contingent of good staffs and restructure distribution systems based on world famous groups’ models. It has set up nine commercial joint stock companies to expand the distribution nationwide and has improved its marketing and sales system.

 

The company’s success in Vietnam and the world has made SABECO more attractive to many foreign beer groups like the US’s Budweiser, Belgium’s InBev, Holland’s Heneken, Japan’s ASAHI and Thai’s ThaiBev. The quality of SABECO’s beer has been affirmed via a distribution network covering 40 provinces nationwide.

 

The company needs to receive much support from the government, the Ministry of Industry and Trade as well as the Ho Chi Minh City People’s Committee to reach its set goals. The government should allow a reduction in state ownership ratio in the enterprises to 30 per cent in 2013 and offer more financial assistance for relocated projects.   Besides its business activities, SABECO has believes in the importance of building its corporate social responsibilities with its concrete message “joining hands for community”.