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Vietnam. Habeco finding it increasingly difficult to compete for the national beer market

60% of total sales in Vietnam accounts for inexpensive beer. Two corporations have divided this key segment of the market for a long time. Habeco (Hanoi Beer-Alcohol-Beverage) controls the North of Vietnam and Sabeco (Saigon Beer-Alcohol-Beverage) controls the South.

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However, this separation does not protect against mutual encroachments. A few years ago, Sabeco not only led an active marketing policy, but also invested into the construction of breweries in the North of the country.

Sabeco has 17 regional sales offices in the North, 15 of which are located in Hanoi, and 4 factories in Hanoi, Phu Yen, Phu Tho and Ha Nam. In contrast, Habeco Breweries do not extend beyond the center of the country.

In 2015, Habeco was only the third with a market share of 17.5%, yielding the leadership to Sabeco, which has 47% of the market. The second place on the market belongs to VBL (Vietnam Brewery Limited), which produces Heineken, Tiger and Larue Beer Beer in Vietnam.

However, the problem of Habeco is not only the domestic competitor, but also imported beer brands owned by AB InBev and Sapporo. Therefore, Habeco is actively investing into brand promotion of Truc Bach, intending to bring it at the same level with Sapporo Beer and Budweiser.

According to research by Isentia media group, the frequency of references to Habeco brands in media and social networks is 12%. For comparison, Saigon beer brands accounted for 29.8%.

13 Apr. 2016

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