San Miguel Brewery Inc., the beer unit of San Miguel Food and Beverage Inc., is studying plans to invest $70 million in building a 2-million hectoliter brewery in Vietnam, according to a Manila-based newspaper.
Chairman Ramon Ang said in an interview with the Manila Standard on May 28 that, following the annual general meeting, the company would begin building the brewery if its market study showed a good opportunity.
The company has a 200-ha property in Ho Chi Minh City that could house the brewery, he added. It has an existing brewery in Vietnam with an annual capacity of 200,000 hectoliters.
It has also expressed interest in bidding for the Saigon Beer Alcohol Beverage Corp - Vietnam’s largest brewer with a 40 per cent market share.
Revenue in Vietnam’s food and beverages segment is estimated to be $200 million in 2019, according to Statista Market Forecast. Annual growth is forecast at 19.4 per cent in 2019-2024, resulting in a market volume of $407 million by 2023.
User penetration is 16.4 per cent in 2019 and is expected to hit 19.5 per cent by 2023. The average revenue per user (ARPU) currently amounts to $12.55.
San Miguel is also validating plans to build a brewery in California. President Robert Huang said the company recently sent two officials to the US to determine if the community there would allow a brewery and would also study market demand and finalize capacity.
In 2017 the brewer announced plans to set up a brewery in Los Angeles, to cater to the growing demand for its beer in North America. It also operates in Hong Kong, China, Indonesia, and Thailand, through its unit San Miguel Brewing International Ltd., which can collectively produce up to 8 million hectoliters of beer yearly. The company also exports beer to over 50 markets.
Its beer business saw orders rise 4 per cent in the international market, on top of an 18.8 per cent volume pickup in the Philippines. Vietnam Economic Times
In 2016, the average consumption of beer and liquor in Vietnam was 8.3 liters, much higher than the global average (about 6.5 liters in 2017) and the trend increasingly hiked, up by 90% over the past seven years.
As plastic reduction is becoming an essential trend to save the environment, beverage companies, which still depend on tremendous amounts of plastic materials, cannot opt out of the trend.
Vietnam, a market of 93 million people, is seeing rapidly growing consumer demand for food and beverage (F&B) products, offering ample space for the F&B sector to expand.