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Tag: beer

  • Vietnam’s Sabeco, taxman at loggerheads

    Vietnam’s Sabeco, taxman at loggerheads

    HCMC tax authorities have failed to collect $135.73 million in taxes and fines, while brewer Sabeco has cried foul. The Tax Department of Ho Chi Minh City informed Vietnam’s largest brewer Sabeco on December 24 that it would withdraw VND3.1 trillion ($135.73 million) from the beer company’s bank account to collect overdue special sales tax from 2007 to 2015 and penalties for administrative violations.

    However, the move failed because there was no money left in Sabeco’s Vietcombank account.

    Le Duy Minh, deputy head of the department, said that his agency has temporarily blocked Sabeco’s Vietcombank account.

    “We have asked Sabeco to provide details of other bank accounts but it has not fulfilled that request,” he said.

    But Sabeco claims that it has not violated the law.

    Sabeco general director Neo Gim Siong Bennett said in a statement Sunday that Sabeco has not violated regulations on the declaration, calculation and payment of special sales tax.

    He said the enforcement action by the HCMC Tax Department was a violation of Vietnamese laws, as it was taken “without a valid administrative decision” and “contradicts with the very written guidance issued by the Ministry of Finance, General Department of Taxation and Tax Department of HCMC.”

    He said Sabeco’s “legitimate interests are being threatened by the inconsistent views among State authorities.”

    As Sabeco is set to meet with Prime Minister Nguyen Xuan Phuc, the tax department will await the meeting’s results before taking further steps, Minh said.

    Following Sabeco’s meeting with Prime Minister Nguyen Xuan Phuc on Wednesday, the latter has asked the tax department to defer its enforcement actions.

    Mai Tien Dung, Chairman of the Prime Minister Office said that government bodies are carefully examining the case as it involves “foreign factors.”

    In December 2017, Thai Beverage acquired a 53.59 percent stake in Sabeco from Vietnam’s Ministry of Industry and Trade for $4.84 billion through a local entity, Viet Beverage (VietBev).

    Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, recorded revenues of VND25.5 trillion ($1.1 billion) in the first nine months 2018, meeting 70 percent of its annual target.

    It occupies approximately 42.8 percent of the domestic beer market, according to the Ho Chi Minh City Securities Corporation. It produced nearly 1.8 trillion litres of beer in 2017.

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  • Knows more : Rahul Singh, Founder & CEO, The Beer Café India

    Knows more : Rahul Singh, Founder & CEO, The Beer Café India

    With multiple awards like; Images Coca Cola Golden Spoon Award, India Restaurant Congress Award, Times Nightlife Award and ET Now Business and Service Excellence Award, the consumer and industry has recognized this startup as a blockbuster. Singh is the recipient of the TiECON 2010 Entrepreneurial Award for Excellence and holds the position of the Honorary Secretary for the NRAI (National Restaurant Association of India). He was also bestowed with the Prestigious Entrepreneur India 2015 Award in F&B services.

    Before he started The Beer Café, Singh was CEO, Greg Norman Collection India from 2007-09. In that role he spearheaded the brand’s operations involving sales, marketing and manufacturing.

    Prior to 2007, he was the Executive Director at Reebok India for 8 years and was a part of their leadership team, also setup a robust sourcing base for exports from South Asia.

    As a textile engineer, he brings in an analytical approach to each line of enterprise that he gets into. He has undergone training in draught beer technology at Micromatic Institute in Florida, USA.

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  • Beer tax prioritized as foreign brands build market share

    Beer tax prioritized as foreign brands build market share

    The government is planning to overhaul the current cost-based alcohol-tax system to a quantity-based system, which may address concerns from local alcohol companies about cheap imported beer. According to the Ministry of Economy and Finance on Tuesday, current taxes on alcohol are based on costs, such as manufacturing or import prices. The government is currently working on a reform that will transition the system, established back in 1969, to a new one based on quantity, such as total volume or alcohol content.

    The initiative has been in the spotlight with Finance Minister Hong Nam-ki addressing the issue during his recent confirmation hearing.

    “[We] will consider a change next year without increasing prices,” said Hong. “[We] will consider strengthening the future competitiveness of the alcohol sector and the fairness of the alcohol-tax system as a whole.”

    The comments come as criticism mounts against importers that reportedly declare low import prices for foreign beer and maintain competitive or even cheaper prices than local beer.

    The tax base for local beer is based on the price of beer shipped out from distilleries, which includes costs for production and sales and a margin. For imported beers, the tax is calculated based on the import price paid by the importer and the customs duty. As importers can lower taxes by reporting low prices, foreign beers can maintain price competitiveness against local offerings.

    Local beer companies have argued against this cost-based tax system, saying it is a form of discrimination against Korean manufacturers.

    “The tax rates are identical, but because the tax base is high, there is a twofold difference,” said Kang Seong-tae, chairman of the Korea Alcohol & Liquor Industry Association at the annual National Assembly audit in October.

    The favorable tax system has allowed for the competitive pricing of imports and an increasing market share for foreign beers, rising to 16.7 percent last year from 4.9 percent in 2013.

    While the tax change may provide a level playing field, it raises concerns that widely popular promotions in which four beer cans are sold for 10,000 won ($8.89) may not survive the reform.

    The change, however, is unlikely to eliminate the promotions altogether.

    The government is considering a plan to introduce alcohol taxes of 850 won per one liter (33.8 ounces) of beer. The current average beer tax works out to roughly 850 won per liter, though it is calculated in a different way.

    When converting the current alcohol tax to an amount per liter based on figures by imported country from the Korea Customs Service, imported beers that are taxed higher than 850 won per liter include those from the United Kingdom at 1,194 won per liter on average; the Philippines at 1,032 won per liter; Ireland at 1,004 won per liter and Japan at 958 won per liter.

    Beers from these countries will likely attract a lower tax after the reform.

    Meanwhile, beer from countries that have lower average taxes per liter compared to the 850 won per liter standard will become more expensive. Beers from the Netherlands are currently taxed at 519 won per liter, Belgium 567 won per liter, the United States 654 won per liter and Germany and Denmark 735 won per liter.

    In general, premium imported beers have expensive import prices.

    With the introduction of a quantity-based system, taxes levied will become lower and the current promotions of four cans at 10,000 won will likely remain.

    However, promotions of six cans for 10,000 won will probably disappear as cheap imported beer will face higher taxes.

    “[We] will establish a reform plan for alcohol tax as early as the first half of next year by conducting research and gathering opinions,” said Kim Byung-gyu, director general of the Tax and Customs Office at the Finance Ministry. “[We] have an objective to ensure overall fairness in taxation and make changes without increasing the burden on the consumer.”

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  • Homeplus hosts 1st beer sommelier competition

    Homeplus hosts 1st beer sommelier competition

    Twenty-seven people have been awarded the auspicious title of beer sommelier by discount chain Homeplus. The discount chain’s first Macmelie Contest – macmelie is a portmanteau of the Korean word maekju, or beer, and sommelier – on Saturday saw 200 contestants gather at a convention center in Gangnam District, southern Seoul, to take a comprehensive test for a chance to become Homeplus-certified beer sommeliers.

    A total of 10,000 people had taken an online preliminary test to qualify to attend the Macmelie Contest.

    The 27 contestants who passed the test on Saturday with over 70 points out of a 100 were awarded Macmelie ID cards. They were also given the opportunity to be the first to try out Homeplus’ newest beer imports and work together with the company to develop new beer products.

    The test included a written paper, worth 60 points, and a more interactive round – inevitably including a beer tasting test – worth 40 points.

    Some of the written questions tested contestants’ basic knowledge of beer, for example by asking for the German city that hosts Oktoberfest or the brew’s four core ingredients. Other questions were more difficult. One asked for the historic period when Duke Wilhelm IV of Bavaria adopted the German Beer Purity Law, while another asked for the number of indents that beer bottle caps have.

    The interactive questions were also challenging. Contestants had to guess how many milliliters of beer a cup held and also identify beer types by taste.

    Lee Ik-jin scored the highest out of all contestants with 84 points. “I didn’t expect to win first place, but I think my experience drinking a lot of beer in the past helped.”

    Homeplus currently offers around 690 types of local and foreign beer. The company says it hopes to enrich Korea’s beer consumption culture through its Macmelie contest.

    “We’ve been offering beer from around the world to meet rising demand that we are now even called the beer mecca,” said Kim Min-soo, a brand marketing manager at Homeplus.

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  • Kenanga Malaysia raises earnings outlook for Carlsberg

    Kenanga Research has increased its FY18 and FY19 earnings for Carlsberg Brewery Malaysia Bhd on the back of improved contributions from Lion Brewery in Sri Lanka.

    “We increased our FY18E and FY19E earnings by 4.3% and 3.5% respectively as we improved contributions from Lion Brewery. Additionally, we increased our Malaysian demand assumptions following the stronger results,” it said in its report today.

    For the nine months ended Sept 30, the group reported core Patami of RM205 million, which amounted to 82% of Kenanga Research’s full-year expectations.

    “We deem this to be above but within our consensus estimates, mainly due to better-than-expected contribution from its Sri Lankan associate, Lion Brewery. Malaysian sales were also better than expected, subsequent to our previous adjustments for softer demand post-Sales and Services Tax (SST),” it said.

    Moving forward, it expects Carlsberg’s on-trade sales (at food and beverage establishments) to be dented by Sales and Services Tax finally kicking in, as these establishments would have to bear the brunt of both taxes.

    “We anticipate demand to be skewed towards the off-trade market (retails, supermarkets), albeit being a lower margin channel. Still, the group’s continued emphasis on its premium mix could bolster the overall performance in the local scene,” it said.

    Meanwhile, HLIB Research does not expect any hike in alcohol excise duty as the structure is already the third highest globally.

    “We opine a hike in excise duty would result in growth in the illicit market at the expense of the legal volumes, which will result in reduced tax collection. For this reason, a hike in alcohol excise duties is unlikely,” it said in its report.

    It expects the government and Royal Malaysian Customs to continue their efforts to fight contraband and strengthen the legitimate tax paying portion of the beer market in Malaysia and hence the government’s revenue collection of excise duty.

    On the recent increase in the minimum age for purchasing alcohol to 21, it expects this to result in lower industry volumes due to a smaller pool of legal consumers.

    HLIB Research maintained its “buy” call with an unchanged target price of RM22.70.

    Carlsberg’s share price fell 1.62% or 32 sen to close at RM19.40 with 51,600 shares traded. It was one of the top losers on the bourse this week.

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  • Vietnam brewer Sabeco lifts foreign ownership cap

    Vietnam brewer Sabeco lifts foreign ownership cap

    Vietnam’s largest brewer Sabeco says it has removed its foreign ownership limit, in a statement on its website Monday. The company, known for its Bia Saigon and 333 brand, said that its board of directors had issued a resolution on Oct. 30 that approves “unrestricted foreign ownership percentage in Sabeco.”

    Last December, Thai Beverage acquired a 53.59 percent stake in Sabeco from Vietnam’s Ministry of Industry and Trade for $4.84 billion through a local entity, Viet Beverage (VietBev).

    Under the government’s Decree 60 dated June 26, 2015, listed companies, except those working in conditional business fields like banking, are allowed to determine their foreign ownership cap. They just need to register the limit with the State Securities Commission.

    The Ministry of Finance last week presented a draft securities law that would remove the current 49 percent foreign ownership cap in many sectors, except some conditional sectors.

    However, the draft has not been finalized and submitted to the National Assembly for approval.

    In Vietnam, conditional sectors refer to industries subject to additional regulations that would override limits set out by the securities law.

    Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, recorded revenues of VND25.5 trillion ($1.1 billion) in the first nine months of this year, meeting 70 percent of its annual target.

    It occupies approximately 42.8 percent of the domestic beer market, according to the Ho Chi Minh City Securities Corporation. Last year, it produced nearly 1.8 trillion litres of beer.

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  • Profits down at Vietnam’s largest brewer

    Profits down at Vietnam’s largest brewer

    Beer maker Sabeco has reported after tax profits of $149 million in Jan-Sept 2018, down 6 percent year-on-year. The company’s total revenue in the first nine months of the year was VND25.5 trillion ($1.1 billion), 70 percent of its annual target.

    According to the company’s third quarter financial report Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, beer continued to dominate its revenue structure, netting over 85 percent of total income. The remaining revenue came from packaging, other beverages and spirits.

    Sabeco recently unveiled a restructuring plan to improve profit margins by 3-4 percentage points over the next few years.

    The company plans to adjust its business operations in five key segments: manufacturing, distribution, marketing, supply chain and storage. This plan involves the leading beer maker in Vietnam considering acquiring minority stakes in beer factories and distribution units.

    The company’s management board has also announced that one of its top priorities is to develop a better distribution system in major cities, especially in HCM City. Through this, Sabeco hopes to regain market share in urban areas currently dominated by Heineken.

    According to the Ho Chi Minh City Securities Corporation, Sabeco occupies approximately 42.8 percent of the domestic beer market. Due to increasing competition from multinational companies, this figure is down slightly from 43.6 percent in the previous year. As a result, consumption growth of Sabeco’s beer was less than the industry average, totalling 1.85 billion litres.

    The corporation estimates that by the end of 2019, Sabeco’s beer market share will increase slightly to 43 percent thanks to its marketing efforts and the launch of new products. Consumption of Sabeco-made beer is also expected to increase to 1.95 billion liters.

    Thai Beverage PCL (ThaiBev) is currently the dominant shareholder in Sabeco, which sells popular beer brands kike Saigon Beer and 333.

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  • Vietnam’s U18 liquor sales ban impractical

    Vietnam’s U18 liquor sales ban impractical

    They are also saying that an emphasis on education and raising awareness will have greater impact in dealing with the problem of liquor abuse.

    A draft bill on the prevention of dangers of alcohol being compiled by the Ministry of Health proposes a number of prohibitions, including: promotion in any manner of liquor with alcohol content of 15 degrees or above; usage of positive phrases like “medicinal alcohol”, “nutritious alcohol” on product labels; advertising of alcohol during television prime time (6-9 p.m.); sale of alcohol to persons under 18; and sale of alcohol on the internet.

    Kieu Anh Vu of law firm KAV Lawyers said it was very necessary to bring legal measures against the dangers of alcohol, because the harm it was causing was indisputable.

    Vu said he supported the draft bill’s ban on alcohol consumption by government officials, civil servants, and employees during working hours or between shifts during the working day; by operators of motorized vehicles; and by people under 18.

    “These regulations are appropriate to ensure social order, safety and health of the community,” he said.

    However, Vu was concerned about how age checks would be carried out. “Will vendors have the right to check people’s age by looking at their identity cards, or just by asking questions?”

    Psychologist Nguyen An Chat, on the same page as Vu, also questioned how alcohol sellers could correctly verify the age of each individual.

    “Some 15 year olds look very mature while some 20 year olds can look underage. Would everyone wishing to purchase alcohol have to produce identity documents?” he wondered.

    An online right?

    Lawyer Vu Tien Vinh, director of Bao An Law Firm, said: “Buying alcohol over the Internet is more convenient than going to shops or supermarkets. If online sale is prohibited, people can and will continue to buy alcohol through traditional channels.

    Vinh said that in reality, it was too easy for buyers to obtain alcohol via traditional channels such as supermarkets and other dealers. When consumers can buy alcohol anytime, anywhere, the ban on online sales will not have much of an impact on its consumption, he said.

    “Detecting online transactions on the sale of alcohol to punish with fines is very difficult. It will not be hard for consumers to get around this regulation,” Vinh added.

    Sociologist Trinh Hoa Binh concurred, saying identification of illegal alcohol sales online was very hard to do.

    “Internet sales are the current trend. Will the prohibition of selling alcohol online go against this?” asked psychologist researcher Nguyen An Chat.

    Given the implementation difficulties, Binh proposed that instead of prohibitive regulations, authorities should instead start with education, build a set of cultural values for the modern Vietnamese society that discourages alcohol abuse.

    Chat supported this. He said education should begin at home and continue in schools so that each person was aware of the danger of drinking, so that people would exercise restraint and control their consumption.

    Psychologist Khuat Thu Hong said many countries have faced difficulties in implementing regulations prohibiting or restricting the sale/use of alcohol, but over time, strict compliance has become the norm.

    “In Vietnam, for these regulations to be implemented well, close monitoring and regular communication on the harms of alcohol will be essential for the people to understand and co-operate,” said Hong.

    In Vietnam, about 800 deaths per year are related to the use of alcohol, including beer. Almost 30 percent of social order disruption cases are also related to alcohol consumption.

    In 2017, Vietnamese people spent close to $4 billion on alcohol. The cost of dealing with alcohol-related traffic accidents was  estimated at about one percent of the GDP the same year.

    The alcohol industry contributes about VND50 trillion ($2.17 billion) to the state budget a year and provides about 220,000 jobs directly or indirectly.

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  • Big changes brewing at Vietnam’s top beer maker

    Big changes brewing at Vietnam’s top beer maker

    Under a proposal seeking shareholder approval at the firm’s annual meeting on July 21, Mr. Koh Poh Tiong has been reappointed as chairman. The 72-year-old, who is a director of Fraser & Neave and chairman of ThaiBev and F & N Beer Group, is also on the boards of several other organizations in Singapore, Malaysia, Thailand, and China.

    He is to head a new seven-member board that will have another Singaporean, a Thai and four Vietnamese, according to the proposal.

    Last May the company had replaced three foreign deputy general directors, who had in turn replaced a Vietnamese trio just a month earlier, with Singaporeans Neo Gim Siong Bennett, Teo Hong Keng and Melvyn Ng Kuan Ngee.

    TCC Group, led by Thai tycoon Charoen Sirivadhanabhakdi, had paid VND110 trillion ($4.89 billion) for a 53.59 percent stake in Sabeco.

    According to a report prepared for the company’s next general shareholders meeting on July 21, its profit target for this year has been revised to VND4 trillion (about $173 million), a reduction of 19 per cent from last year’s results.

    The dividend target has been kept unchanged at 35 percent.

    The report says foreign brewers would continue to expand their production capacity, intensify brand promotion and sales support to gain more market share, exerting “great pressure” on Sabeco, especially when the special consumption tax rate has increased from 60 per cent to 65 percent since early th.

    It also says that Sabeco is confident about maintaining its No 1 brewer position in Vietnam, and expects to boost its exports to African and Asian markets (especially East Asia and Southeast Asia), North America, Russia, the Middle East and Europe (Italy, Netherlands).

    Vietnam’s stable growth, increase in average income and rising demand are favorable conditions to stimulate and stabilize consumption while creating good growth in rural markets, where its Saigon Beer brand has reasonable product positioning and a widespread distribution network, the report says.

    Meanwhile, the prices of main items like malt, hops and aluminum have increased significantly, allowing the brewer reduce production costs.

    This year, sabeco targets to produce 1.8 billion litres, increase export volume to 33,2 million liters.

    In April this year, the Ministry of Industry and Trade (MoIT) had asked Sabeco to pay about VND2.5 trillion ($111 million) in undistributed profits to the state budget.

    The demand was made after a government audit report said that money was part of the brewer’s VND2.7 trillion ($120 million) in undistributed profit, which belonged to the government as the major shareholder with an 89.6 per cent stake as of December 31, 2016.

    Local media reported that although Sabeco claimed such a request did not correspond with the Law of Enterprises and Sabeco’s charter, it had already paid the sum. This sum is not mentioned in the report prepared for shareholders, however.

    Currently, within SABECO, there are 26 breweries, 10 trading subsidiaries and has 37 branches nationwide.

    In the first quarter of 2018, Sabeco’s sales reached VND7.8 trillion, about 5 per cent higher than same period last year; while profits of VND1.4 trillion represented a 4 per cent decline.

    On July 18, more than 641 million shares with the sticker SAB declined slightly to VND217,900 ($9.47) each on the Ho Chi Minh stock exchange, for a market value of VND139.7 trillion ($6.07 billion).

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  • Beer brands pour big bucks into ads as Vietnam bucks global trend

    Beer brands pour big bucks into ads as Vietnam bucks global trend

    As more and more Vietnamese drinkers take to beer and competition heats up, leading brands are spending big on advertisements.

    Saigon Alcohol Beer and Beverages Corporation (Sabeco), the leading beer producer in Vietnam which brews the well-known Saigon and 333 beers, spent VND1.2 trillion ($52.9 million) on advertising last year.

    While this figure is slightly less than its 2016 outlay, it still places Sabeco on the top of advertisement budgets list in the beer industry, spending more than VND1 trillion spent on product promotion in each of the last three years.

    Meanwhile the producer of Hanoi and Truc Bach beers, Hanoi Beer Alcohol and Beverage Jsc, known as Habeco, spent VND568 billion ($24.6 million) on ads last year, over 3 times its 2014 expenditure.

    The increased spending is a response to Habeco’s declining share of the beer market in recent years, from its heydays of having the most popular brands in Northern Vietnam. The company has been augmenting its advertising budget as “there has been no breakthrough in the marketing activities of the brand,” according to Viet Capital Securities, which claims to provide comprehensive research to assist investors in maximizing profits.

    Sabeco, Habeco, along with Heineken and Hue Brewery (which is owned by Carlsberg) made up 90 percent of the beer market in Vietnam last year. The big four are known to spend big on advertisements as they compete with each other in the Vietnamese market, which is considered to have more advantages than other countries.

    “While beer consumption in many countries has stalled, there is still a lot of potential for this industry in Vietnam,” said Nguyen Van Viet, president of the Beer, Alcohol and Beverage Association (VBA) in a recent conference.

    In China and some European countries, beer consumption has stagnated or even declined slightly. But in Vietnam it is forecast to rise in the coming years, Viet said.

    He is backed by a study of the Asia-Pacific beer market conducted by Euromonitor, which claims to be the world’s leading independent provider of strategic market research.

    The study found that beer consumption in the world has not increased in a decade, but in Vietnam, this figure is increasing rapidly.

    In 2008, Vietnam ranked 8th position in beer consumption in Asia, just 8 years later it had climbed to 3rd position, behind Japan and China.

    In a market dominated by big players, new businesses are having trouble making a stand. Laser, Fosters and Zorok are among the brands that have tried and failed to gain a decent foothold in the Vietnamese consumer. Local media reports have said that the high costs of advertisements had made it difficult for these firms.

    Sapporo, one of the newer entrants, has recorded higher consumption in recent years, but very high marketing costs have seen to it that its profit is not substantial, Viet said.

    Last year, Vietnam consumed over 4 billion liters of beer, and a Vietnamese person consumed 45 liters on average, according to VBA. The country targets production of 4.1 billion liters of beer in 2020 and 5.5 billion in 2035.

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  • Despite growth, Vietnam’s beer market remains established giants’ playing field

    Despite growth, Vietnam’s beer market remains established giants’ playing field

    Many big companies have failed to tap into Vietnam’s competitive beer market despite steady growth, industry experts said.

    Nguyen Van Viet, chairman of Vietnam Beer, Alcohol, and Beverage Association (VBA), said that only big brands such as Heineken and Sabeco are doing well, while others are struggling.

    Take Sapporo for example, the company has maintained low levels of profit despite growing sales because of high operational and advertising costs, Viet said.

    Other big players have been even less successful. Masan Food, whose products are staples in Vietnamese families, has yet to dominate supermarket shelves with its White Lion premium lager beer four years after its launch.

    Another example would be, local dairy giant Vinamilk and British brewing company SABMiller (now belonging to Anheuser-Busch InBev). The two companies joined forces in 2006 to open a brewing venture. Their product has, however, failed to compete against other established brands and remains largely unknown. Vinamilk withdrew from the venture after just two years.

    However, the market is still considered a promising ones. Vietnam’s beer industry has seen a stable 5 percent annual growth even though world’s average consumption hasn’t budged in the past decade.

    According to Euromonitor’s Southeast Asia beer consumption report, Vietnam will be a noteworthy market in upcoming years given the current momentum.

    The international market research company also called Vietnam as “the next battlefield for brewers.”

    Vietnam consumed more than 4 billion liters of beer in 2017, according to VBA’s report.

    The industry aims to produce 4.1 billion liters of beer in 2020 and 5.5 billion liters in 2035

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  • Shrinking profit for Sabeco’s Vietnam

    Shrinking profit for Sabeco’s Vietnam

    Saigon Beer, Alcohol and Beverage Corporation (Sabeco) has released its consolidated financial statement for the first quarter of this year. Accordingly, Sabeco reported an increase in revenue but a decrease in profit.

    Notably, its consolidated net revenue was VND7.81 trillion ($343.1 million), up 4.6 per cent on-year, after-tax profit decreased by 2.7 per cent to VND1.16 trillion ($50.96 million).

    Besides, as of March 31, the firm’s asset value reached VND20.76 trillion ($912.09 million), down 6 per cent against the beginning of the year.

    Meanwhile sales expense decreased by 13 per cent to VND594 billion ($26.18 million) due to decreases in expenditure for administrative and marketing programmes.

    Along with the decline in profit, Sabeco’s share plunged after hitting the record VND334,500 ($14.69) in late November 2017. Notably, on May 4, Sabeco’s shares were at VND219,000 ($9.62).

    Previously, the April 23 extraordinary general shareholders’ meeting voted to add three new foreign members to the management board, including one from Thai Beverage Public Co., Ltd.

    The first is Koh Poh Tiong, chairman of Thai Beverage-owned Beer Group, which owns a 49 per cent stake in Vietnam Beverage.

    This year, Sabeco estimated earnings of VND35.98 trillion ($1.58 billion) in revenue and VND4.8 trillion ($210.86 million) in after-tax profit, signifying increases of 4.4 and 2.2 per cent, respectively.

    The others are Malcolm Tan Tiang Hing, CEO of Shanghai-based alcoholic beverages distributor Dxcel International, and Sunyaluck Chaikajornawat from Thai law firm Weerawong Chinnavat & Partners Ltd. They were elected as independent members.

    Speaking at the meeting, Koh Poh Tiong stated that the new members will co-operate with the existing members to help Sabeco maintain its leading position in Vietnam. Besides, the new members will try to take the Sabeco and 333 Beer brands abroad. Singapore will be the first destination and the next stop Thailand, before other countries.

    It will take massive funds to realise the above promise, which seems even more unlikely in light of the consecutive decreases in Sabeco’s profit.

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  • Thai Beverage unit to bid for at least 25 percent of Sabeco

    Thai Beverage unit to bid for at least 25 percent of Sabeco

    A unit of Thai Beverage (TBEV.SI) has emerged as the only prospective bidder for state-owned shares in Sabeco (SAB.HM) that has declared that it could lead to it owning 25 percent or more of Vietnam’s biggest brewer, the Trade Ministry said on Monday.

    The auction of up to 54 percent of Sabeco worth at least $5 billion, in what is set to be Vietnam’s biggest privatization, offers brewers access to a fast-growing market with a youthful population and beer drinking culture.

    Investors who want shares that would lead to an ownership of 25 percent or more in Sabeco have to inform the local authorities and publicize the information a week before the auction date, which is set for December 18, according to the rules of the offer.

    Other brewing groups including Anheuser-Busch InBev and Kirin Holdings have been preparing to bid for a stake, people familiar with the matter have said.

    But the trade ministry said in a statement on its website that as of 1100 GMT on Monday the one prospective investor which has registered an interest in buying 25 percent or more of Sabeco that has publicized the information is Vietnam Beverage Company Limited.

    Vietnam Beverage Company Limited is owned by Vietnam F&B Alliance Investment Company, which is 49-percent owned by BeerCo Limited, an indirect but wholly-owned subsidiary of Thai Beverage, official documents about the companies showed.

    Foreign ownership in Sabeco is limited to 49 percent. That means overseas bidders can only bid for a minority stake of as much as 39 percent as foreign entities already own 10 percent.

    Lack of control and the unorthodox way in which the Sabeco stake is being sold could put off some possible bidders, bankers, investors and lawyers familiar with the matter said.

    The Vietnam trade ministry, which represents state shares in Sabeco, said foreign investors can link up with Vietnamese firms to buy shares in Sabeco, but have to comply with local laws and regulations.

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  • Stella Artois launches a new pack and limited-edition design

    Stella Artois launches a new pack and limited-edition design

    AB InBev has developed limited-edition packaging for Stella Artois to coincide with the Christmas period.

    The four-pack tote is designed to provide a new unwrapping ritual, with an easy-open tab running around the centre of the pack. The rounded edges and curves create a sleek, premium aesthetic, whilst the eye-catching red handle makes it easier to carry the tote from store to home, or seasonal gatherings.

    The new packaging format will launch in Sainsbury’s and Ocado in time for Christmas, arriving in stores and online on 29 November.

    The Stella Artois brand has a natural association and historic connection to the festive season; in 1926 The Artois Brewery in Belgium first crafted a festive beer as a Christmas gift to the people of Leuven. That special batch was the first to officially include “Stella” in its name. “Stella”, meaning star in Latin, pays homage to this original occasion, accompanied by a star on every bottle.

    Continuing its celebration of the festive period, Stella Artois will launch its limited-edition Christmas design across varying formats*, featuring the gold star across packs. The 750ml Christmas Bottle will also make a return for 2017. Imported from Leuven, the home of Stella Artois, it is perfect for those Christmas sharing moments.

    Matt Leadbeater, senior brand manager, Stella Artois, commented: “Stella Artois is the go-to choice for consumers looking for a quality experience, and the new packaging perfectly represents the premium brand persona.

    “Stella Artois is synonymous with Christmas, with an authentic seasonal story to tell. We hope the unique, limited-edition design will get consumers even more excited for the festive period this winter.”

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  • Thumbs up for 7-Eleven Thailand draught beer

    Thumbs up for 7-Eleven Thailand draught beer

    Convenience store chain 7-Eleven Thailand is not breaking the law by offering beer on tap as long as it is poured by cashiers rather than customers, and beer brand names or logos are not visible.

    Debate is raging after 7-Eleven outlets on Bangkok’s Yaowarat Road in Chinatown introduced a draught beer service, but an official says a beer dispenser worked by store staff members is fully within the law.

    Deputy-director Dr Asadang Ruayajin of the Department of Disease Control (DDC), which works under the umbrella of the Public Health Ministry, says an inspection of the stores in question – after receiving a petition to do so – shows the dispensing machines have labels attached to obscure the beer brands’ logos, which complies with the Alcohol Control Act.

    The department has been watching about 10 stores but has not found any transgressions.

    Coconuts Bangkok offers a backstory to the protest, following a video of draft beer being poured from a 7-Eleven automatic machine went viral on the Facebook page Thai Smile.

    Thai netizens got just a little too excited about the new Leo beer-pouring machine,” it reports. But when an official visited the store the beer machine was covered with a big white cloth hiding the beer logo. Also, customers need to pay at the cashier where IDs can be checked.