home Uncategorized “The giant” Sabeco worries that it only makes up less than 20% of market share

“The giant” Sabeco worries that it only makes up less than 20% of market share

The average income of the people increasing  and leading  to shifting consumers from the average beer segment to the premium beer segment of a cosumer group has made Sabeco worry about the threat of fierce competition from other companies in the premium segment  such as Heineken and Sapporo.

The share SAB of Sabeco is going to be listed on HoSE in early December. Many investors are interested in this “giant brewer”.

Despite being the leader in the Vietnam beer market, Sabeco is facing a major concern: other brewers in the premium beer segment can fight over the market share!

According to the published prospectus, Sabeco said that the biggest factor  impacting the market risk is the competition of the branding brewers with strong financial resources and experience abroad, especially when Vietnam adjusted the tax policies under commitment in WTO and other trade agreements in the future.

Sabeco also gave another risk that after signing the Trans-Pacific Partnership Agreement (TPP) and the ASEAN Trade in Goods Agreement (ATIGA), Vietnam will reduce import tax for many products including beer , alcohol. Vietnam commited to reduce import tax on alcohol and beer after signing the TPP down to 0% from the 12th  year for strong alcohol and from the 11th  year for beer. Although these two sectors are in a quite long schedule of tax reduction, Sabeco stated that it was a risk forr domestic beer and alcohol enterprises including Sabeco because  beer products imported from other countries are expected to increase strongly in the upcoming time.

On the other hand, although Sabeco has made constant effort to dominant the beer market with ~ 40% of the market share, the average-price beer segment  is in a very fierce competition from other companies in the premium beer segment such as Heineken (currently, making up about 17-20 % in the Vietnam beer market), and Sapporo (making up an insignificant market share). In addition, a group of consumers tend to switch to premium beer segment when the per capita income tends to increase which can make the competition correlation in the beer market change.

Despite being the leader in the Vietnam beer market, Sabeco has prepared plans for this risk.

Output data from 2010-2015 showed that premium beer only accounted  for a very small proportion of the total volume of consumed beer but the growth rate has been increased over the years
Output data from 2010-2015 showed that premium beer only accounted  for a very small proportion of the total volume of consumed beer but the growth rate has been increased over the years

According to Phuong Chi/ Tri Thuc tre

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