UK: Scottish & Newcastle confirms Vietnam brewery build

By | 4 December 2007

Scottish & Newcastle has confirmed its plans for its first brewery in Vietnam.

Local media reported today (4 December) that the brewer has set aside US$75m through its joint venture in the country with state-owned wine and tobacco company Vinataba to build the new facility. Speaking to just-drinks, a spokesperson for the brewer confirmed the reports, noting that, of the $75m, S&N will be stumping up $19m.

As well as confirming that the greenfield site will be west of Ho Chi Minh City in Vietnam's Long An province, the spokesperson added that the facility would be used primarily for the production of S&N's Kronenbourg 1664 beer brand. "Prior to this, we have been importing Kronenbourg into Vietnam to seed the brand," the spokesperson said.

S&N has previously just had a sales company in Vietnam, a country which has attracted a large amount of interest from the global brewers of late.

Last year, SABMiller set up a joint venture with Vietnam's leading dairy group, Vinamilk. Meanwhile, Asia Pacific Breweries, Heineken's partner in Asia, controls five breweries in the country. Carlsberg holds around 10% of the beer market through its investments in two local brewers. In March, the Danish brewer bought a 10% stake in Habeco, Vietnam's second-largest brewer.

Local brewer Saigon Brewery remains the market leader in Vietnam, where beer consumption is growing at about 8% a year.

Sectors: Beer & cider

Companies: S&N, SABMiller, Heineken, Carlsberg

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