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Sabeco is Vietnam's leading brewer and beverage company, founded in 1875. It produces a diverse portfolio of beers, ciders, mineral water, and malt beverages. Sabeco has production facilities across Vietnam and holds a commanding market share. It trades on the Ho Chi Minh stock exchange under the ticker SAB. The company aims to become the leading beverage group in Vietnam and expand in regional and international markets.
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0% found this document useful (0 votes)
24 views

FI Script

Sabeco is Vietnam's leading brewer and beverage company, founded in 1875. It produces a diverse portfolio of beers, ciders, mineral water, and malt beverages. Sabeco has production facilities across Vietnam and holds a commanding market share. It trades on the Ho Chi Minh stock exchange under the ticker SAB. The company aims to become the leading beverage group in Vietnam and expand in regional and international markets.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sabeco (Saigon Beer, Alcohol, Beverage Joint Stock Company) is a household name in

Vietnam, and the country's leading brewer. Founded in 1875, Sabeco boasts a rich history and
remains a significant player in the Southeast Asian beverage market.

Business line: Producing and selling beer, alcohol, and other beverages

Sabeco produces a diverse portfolio of beers, including the iconic Bia Saigon Lager, and holds a
commanding market share in Vietnam. In recent years, the company has expanded its offerings
beyond beer, venturing into cider, mineral water, and malt beverages. Sabeco's production
facilities span across Vietnam, ensuring nationwide distribution and brand recognition.
With a vision Develop SABECO to become the leading beverage group in Vietnam, having firm
foothold in regional and international markets.

Stock Information (SAB):


Sabeco trades on the Ho Chi Minh Stock Exchange (HOSE) under the ticker symbol SAB.
with Par Value VND10,000 per share.
Charter Capital
6,412,811,860,000
SAB operate according to the parent company - subsidiary model
Type of business
- Producing and trading beer, alcohol, berverage
- Manufacturing equipments used in food manufacturing, installing and maintaining machinery
system and equipment
- Producing and trading tin lid rings and metal packaging, packaging for food and beverage
industry

We can determine that the company is in the maturity stage

Strengths

With advanced production technology,

a team of marketing professionals recruited, and the distribution system restructured

based on the study of the successful models of leading beer conglomerates in the world, ten newly
converted joint stock companies formed the framework for the formation of a nationwide distribution
network covering the entire country, creating a competitive advantage in the domestic market for the
products of the Saigon Beer, Alcohol, and Beverage Corporation and also a foundation for the
development of the Sabeco brand around the world.

In terms of beer products, Sabeco has succeeded in creating its own identity,

because when international visitors come to Vietnam,

they know that the unique taste of beer is Saigon, 333...

The SABECO brand has truly become a traditional brand loved by consumers and is a source of pride for
Vietnam.
Weaknesses

The linking and acquisition of businesses in the form of joint ventures or a parent-subsidiary model

in each locality facilitates production, distribution, saves transportation costs,

and reduces product prices. However, the disadvantage of this issue is that products

produced in each region can be "localized". For example, the technical technology, management
procedures, etc . at each factory that subcontracts for Sabeco in each region are different, leading to a
lack of uniformity and consistency. In addition, as we know, about 90% of beer is made from water, so the
water source plays an essential role in creating the characteristics of beer, while the water source in each
region is completely different. Therefore, if SABECO beer products are not strictly audited, Sabeco
products are likely to lose their identity.

Large quantities of raw materials mainly have to be imported from abroad,

affecting costs and product prices. The issue of raw materials is always a challenge for the beverage
industry in general. The most feasible solution for businesses is to be well prepared in signing contracts
for the purchase of raw materials, and to explore market trends, not only with imported raw materials
but also with domestic raw materials such as rice, fruits, etc. For the beer industry in particular, our
country does not have a raw material area due to inappropriate soil and climatic conditions, as well as
not being invested adequately. Although the Vietnam Institute of Alcohol-Beverage-Soft Drinks Research
had a pilot project to grow Đại Mạnh at Cao Bằng, the results were quite promising, but it has not been
implemented on a large scale but only in the form of pilot. Therefore, currently 60-70% of raw materials
have to be imported. This is a limitation of the beer industry in general and on top of Sabeco, the leader
of the beer industry in Vietnam.

An enterprise with a large market share,

accounting for about 50 - 60% of the beer, alcohol - beverage market in Vietnam

Opportunities

Changes in customer consumption trends:

Due to the pressure of inflation and spending cuts this year, if there is a demand, customers will tend to
consume cheaper types of beer. This could be an opportunity for domestic enterprises such as Habeco
and Sabeco

The Vietnamese beer market is growing rapidly:

Việt Nam is a beer powerhouse. According to the World Health Organization (WHO), Vietnam ranks
second in Southeast Asia and third in Asia in terms of average per capita alcohol consumption.

Threats

Fierce competition from domestic and foreign rivals

Alcoholic beverages in Vietnam must pay taxes at two stages:


the import stage and the domestic consumption stage, including 3 different taxes:

import tax (from 5-80% depending on the type of FTA), tax added value (10%)

and special consumption tax (increased sharply from 50% to 65% in 2018).

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