THE GIST
Bloomberg reports that Heineken has purchased the Carlsberg-owned Vung-Tau brewery for an undisclosed sum.
WHY IT MATTERS
Vietnam is one of the fastest growing economies in the world, one which includes both a dynamic streetculture and a young population with an increasing interest in international brands. Its inherent nature makes it a solid business move for brands such as Carlsberg, Asahi, and Heineken as their more traditional markets become increasingly competitive.
Bloomsberg’s report indicates that the deal was made in July and will see Heineken expand its presence in this growing market. Vietnamese consumers, of which an estimated 68.7 million are of legal drinking age, are expected to consume up to 4.04 billion liters of beer in 2016, up from 3.88 billion last year. A growing market such as Vietnam gives a brand such as Heineken the opportunity to demonstrate strong levels of growth that they might otherwise struggle to produce in markets such as the U.S., where craft is the biggest growth sector.
Furthermore, Vietnam’s domestic beer brands have a reported 63% total market share, which is a small figure when compared to a 90% domestic share in neighboring Thailand and Japan. GBH’s Mark Spence spent some time exploring it earlier this year.
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Heineken Buys a Brewery From Carlsberg in Southeast Asia's Thirstiest Beer Market [Bloomberg]
—Matthew Curtis