Alcoholic Drinks in Vietnam

Report Summary

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Vietnam with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

The Alcoholic Drinks in Vietnam market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Production, imports by origin, exports by destination
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Alcoholic Drinks in Vietnam?
• What are the major brands in Vietnam?
• Have there been any alcoholic drinks legislative changes over the past 12 months?
• How is the alcoholic drinks industry affected by the recession?
• What is consumed more; beer, wine or spirits?
• What have been the key trends seen in new product developments?
• Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

EXECUTIVE SUMMARY

Alcoholic drinks continues to see strong growth despite the gloomy economy

In 2011, the Vietnamese economy was suffering from a high inflation rate. However, alcoholic drinks still performed well and saw strong growth in all categories. Double-digit growth was observed in both the on-trade and off-trade channels. Moreover, the environment also became more sophisticated with more product variety. Alcoholic drinks in Vietnam still has lots of potential and has yet to reach maturity.

Marketing activities play a major role in establishing brand awareness

Marketing activities were heavily employed by major players in order to enhance product awareness and establish brand position. New product launches were heavily promoted through traditional channels such as TV, outdoor billboards, newspapers and magazines, and public relations events. Due to the tightening legislation with regard to above-the-line marketing for alcoholic drinks, public relations events and sponsorship are becoming more popular.

International brands enhance their presence but local players still dominate

Local major players continued to dominate the alcoholic drinks market in 2011. Local players invested heavily in production facilities to improve their product quality and expanded into less developed areas to enhance sales. They also strived to meet international standards, while trying to keep their prices at affordable levels in order to compete with international players. International players were involved in marketing and advertising activities to introduce their products to consumers.

On-trade channels see strong development

As consumers had more disposable income and busier lifestyles, they developed a habit of more frequent dining out. As consumers increasingly preferred socialising in restaurants, consumption of alcoholic drinks, especially beer, increased significantly. Nightlife activities in Vietnam also saw strong development, with more bars, clubs and nightclubs being opened, which led to increasing demand for wine and spirits in Vietnam.

Alcoholic drinks is expected to grow steadily over the forecast period

It is expected that the alcoholic drinks market in Vietnam will continue to grow strongly over the forecast period. On the supply side, there are constant developments by manufacturers, such as new product development, major marketing activities or event sponsorship. On the demand side, Vietnam, with a young population and an increasing number of working class consumers, is expected to see growing demand for alcoholic drinks over the forecast period. Moreover, there will be a shift towards more premium products over the years.

Table of Contents

Alcoholic Drinks in Vietnam - Industry Overview

EXECUTIVE SUMMARY
Alcoholic drinks continues to see strong growth despite the gloomy economy
Marketing activities play a major role in establishing brand awareness
International brands enhance their presence but local players still dominate
On-trade channels see strong development
Alcoholic drinks is expected to grow steadily over the forecast period

KEY TRENDS AND DEVELOPMENTS
Drinking culture becomes more acceptable in Vietnam
Alcoholic drinks environment becomes more sophisticated
Big domestic players consolidate their leading positions
Key new product launches
Summary 1 Key New Product Developments 2010-2011
Specialist retailers
Market merger and acquisition activity

MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2006-2010

TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011: 333’ export
Table 5 Selling Margin of a Typical Wine Brand 2010: Dalat Strawberry Wine
Table 6 Selling Margin of a Typical Spirits Brand 2010: Vodka Hanoi

OPERATING ENVIRONMENT
Contraband/parallel trade

MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS
Published data comparisons
Summary 2 Research Sources

Alcoholic Drinks in Vietnam - Company Profiles

Hanoi Alcohol Beer & Beverages Corp (Habeco) in Alcoholic Drinks (Vietnam)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Hanoi Alcohol Beer & Beverages Corp (Habeco): Competitive Position 2011

Hanoi Liquor Co Ltd in Alcoholic Drinks (Vietnam)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Hanoi Liquor JSC: Competitive Position 2011

Saigon Alcohol Beer & Beverages Corp (Sabeco) in Alcoholic Drinks (Vietnam)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Saigon Alcohol Beer & Beverages Corp (Sabeco): Competitive Position 2011

Thang Long Liquor JSC in Alcoholic Drinks (Vietnam)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Thang Long Liquor JSC: Competitive Position 2011

Vietnam Brewery Ltd in Alcoholic Drinks (Vietnam)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Vietnam Brewery Ltd: Competitive Position 2011

Beer in Vietnam - Category Analysis

HEADLINES

TRENDS
Over the review period, beer was regarded by Vietnamese consumers as a kind of necessity, either in business meetings or in informal gatherings of friends. Some consumers also had a habit of drinking beer during their meal to help them easily digest food. Hence, despite its slower growth compared to 2010, beer continued to see strong growth of 13% in total volume sales terms.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Sabeco continued to lead beer, holding a 48% share in volume terms in 2011. The company aggressively expanded its production facilities to further improve its leading position. In September 2010 Sabeco launched 333 Premium, positioned as a premium product as a response to the consumer trend of shifting to more high-end products. The product was widely distributed and sold in northern regions of the country. Other products like Saigon Export, 333’ export and Saigon Lager also enhanced their presence in both the southern regions and northern regions, thanks to an effective distribution network.

PROSPECTS
Over the forecast period, in spite of some economic difficulties such as a high inflation rate and rising food and fuel prices, Vietnam’s economy looked to have a promising future in 2011. As a result, Vietnamese consumers are enjoying higher disposable incomes and they have additional funds for non-necessary products like beer. Moreover, manufacturers are likely to increase their marketing campaigns and advertisements to stimulate consumer demand for alcoholic beverages. Together with a young population, the Vietnamese market has a lot of potential to see strong growth.

CATEGORY BACKGROUND
Lager price band methodology
Summary 17 Lager by Price Band 2011

CATEGORY DATA

Table 23 Sales of Beer by Category: Total Volume 2006-2011
Table 24 Sales of Beer by Category: Total Value 2006-2011
Table 25 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 26 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 27 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 31 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 32 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Value 2005-2010
Table 34 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 35 Beer Exports by Country of Destination: Total Value 2005-2010
Table 36 Company Shares of Beer by National Brand Owner 2007-2011
Table 37 Company Shares of Beer by Global Brand Owner 2007-2011
Table 38 Brand Shares of Beer 2008-2011
Table 39 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 40 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 41 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Vietnam - Category Analysis

HEADLINES

TRENDS
Cider remained negligible in 2011. Due to the low consumer awareness, there were only a few brands available in high-end supermarkets and restaurants to cater to the foreign tourists and expatriates.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Since cider remains negligible, no particular brand stands out as the leader.

PROSPECTS
Cider holds little potential for future development as consumers have many other alcoholic drinks to choose from. Furthermore, no company has shown any interest in importing or manufacturing this product into/in Vietnam.

RTDs/High-Strength Premixes in Vietnam - Category Analysis

HEADLINES

TRENDS
In the context of the review period, the presence of RTDs/high-strength premixes continued to be negligible. This was due to the fact that consumers generally do not have knowledge of this product. In addition, distribution seemed to be limited, mostly restricted to big cities like Ho Chi Minh or Hanoi.

COMPETITIVE LANDSCAPE
RTDs/high-strength premixes seems to be dominated by imported brands such Smirnoff Ice, Spy Wine Cooler and Aviva. The participation of domestic companies continues to be insignificant due to low consumer demand.

PROSPECTS
RTDs/High-strength premixes has some potential for further development over the forecast period thanks to the increasing participation of a number of famous brands in the worldwide market. Nonetheless, manufacturers and importers need to focus on marketing and public relations activities to educate consumers about these products to boost overall growth.

Spirits in Vietnam - Category Analysis

HEADLINES

TRENDS
Traditionally, spirits were purchased as gifts on special occasions such as Lunar New Year or Christmas holidays. Over the review period, Vietnamese consumers became more familiar with spirits as they were looking for more sophisticated alcoholic drinks products, in line with their increasing disposable household income and improvements in living standards. More and more consumers were willing to consume spirits as they considered spirits to be a trendy drink.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Hanoi Liquor JSC continued to lead in share terms in 2011 with 70% of total volume sales. Since its establishment, the company has put efforts into maintaining good product quality as well as building an established brand name. Vodka Hanoi, its most notable brand, led sales of vodka in both value and volume sales. Because of its positive brand image and affordable price, the brand has gained favourable feedback from consumers, shifting them from low-quality, home-made vodka to industrially-made products.

PROSPECTS
In spite of its slower growth, spirit has good foundation to grow, due to two main reasons. First, low- and middle-income consumers, usually residing in the suburban and rural areas, will push overall growth of local spirits. They are expected to shift from home-made, or low-quality spirits, to branded, industrially-produced ones. Second, the young modern urban consumers will foster sales growth of imported spirits brands.

CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Summary 18 Benchmark Brands 2011

CATEGORY DATA

Table 43 Sales of Spirits by Category: Total Volume 2006-2011
Table 44 Sales of Spirits by Category: Total Value 2006-2011
Table 45 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 46 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 47 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 48 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 49 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 50 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 51 Sales of Gin by Price Platform 2006-2011
Table 52 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 53 Sales of Vodka by Price Platform 2006-2011
Table 54 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 55 Company Shares of Spirits by National Brand Owner 2007-2011
Table 56 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 57 Brand Shares of Spirits 2008-2011
Table 58 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 59 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 60 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 61 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016

Wine in Vietnam - Category Analysis

HEADLINES

TRENDS
In the context of the review period, Vietnamese consumers were familiar with some wine products such as local non-grape wines that were widely available in the country. Sales of niche wine products such as sparkling wine or still light grape wine remained very small compared to local non-grape wine as they had not gained significant consumer awareness.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Thang Long Liquor led sales of wine in 2011 with a total volume share of 21%. Thang Long Liquor had a long-established brand name and a wide distribution network. It also had an extensive product line, with brand presence in almost all categories of wine. The company was also active in marketing. For example, during the celebration of 1,000 years of Thang Long – Hanoi, it launched Thang Long Anniversary, which proved to be a very successful seasonal product of the company. Therefore, the company also experienced the biggest increase in total volume sales in 2011.

PROSPECTS
Wine is expected to display good growth rates over the forecast period. As living standards improve, people will be more willing to spend more on dining out and familiarising themselves with wine culture. There is also a rising number of young consumers living in big cities like Hanoi and Ho Chi Minh who are gradually being more and more affected by Western culture. Consumers also considered wine to be a more modern and classy choice for social gatherings than beer.

CATEGORY DATA

Table 62 Sales of Wine by Category: Total Volume 2006-2011
Table 63 Sales of Wine by Category: Total Value 2006-2011
Table 64 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 65 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 66 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 67 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 68 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 69 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 70 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 71 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 72 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 73 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 74 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 75 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 76 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 77 Sales of Still Red Wine by Quality Classification 2006-2011
Table 78 Sales of Still White Wine by Quality Classification 2006-2011
Table 79 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 80 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 81 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 82 Brand Shares of Still Light Grape Wine 2008-2011
Table 83 Company Shares of Champagne by National Brand Owner 2007-2011
Table 84 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 85 Brand Shares of Champagne 2008-2011
Table 86 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 87 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 88 Brand Shares of Other Sparkling Wine 2008-2011
Table 89 Company Shares of Non-grape Wine by National Brand Owner 2007-2011
Table 90 Company Shares of Non-grape Wine by Global Brand Owner 2007-2011
Table 91 Brand Shares of Non-grape Wine 2008-2011
Table 92 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 93 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 94 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 95 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016