Budweiser
for Vietnam
Source: 9/Dec/2004 Beverage
Daily
Dec 13, 2004, 07:19
Beer giant Anheuser-Busch
has continued to extend the reach of its Asian business following its
announcement to form a cooperation agreement with Vietnam’s largest brewer,
Saigon Beer.
The two companies signed a
Memorandum of Understanding for ‘cooperation and experience sharing’ in areas
relating to management, technology, distribution, marketing, brand and market
development.
US-based Anheuser-Busch
said in a statement that the two companies have recognised the growth
potential of the Vietnamese beer market. It added that the mutual agreement
would provide the opportunity to explore and discuss opportunities for further
cooperation in the future.
Anheuser-Bush CEO Stephen
Burrows said in a statement that the Budweiser brand would probably be the
first to be rolled out in the country, ”but we first need to grow our business
so that our volume can sustain our minimum brewing requirements.”
Saigon Beer, Alcohol and
Beverages Corp supports leading Vietnamese brands such as 333, Saigon Export
and Saigon Special. It has a 30% market share in the country and exports to a
number of international markets, chiefly in Asia.
Anheuser-Busch is one of
the world’s leading beer brewers and known for its global Budweiser and
Michelob brands. It is currently the leading brewer in the US market and has
also built up a strong presence in the China market where it has a major
brewer facility as well as a partnership with the country’s leading brewer,
Tsingtao Brewery.
Analysts say that the move is typical
of Anheuser’s international strategy, and falls in line with the agreement
that the company has with Tsingtao in China. The basic criteria involves
identifying a market with significant growth potential and then teaming up
with the biggest domestic player.
