Suntory's soft drinks unit has unveiled plans to boost its Vietnam production by 60% over the next five years to keep pace with growth in the country.
Suntory says Vietnam is set for soft drinks growth
Suntory Beverage & Food told just-drinks it has a 2021 plan to expand its manufacturing capability in Vietnam, including a near-JPY10bn (US$87.8m) investment in new production lines. The unit will also extend ties with local co-packers.
An SBF spokesperson said that as the unit believes the Vietnamese soft drinks market will grow by more than single digits, it will need this capacity in the mid- to long-term.
The investment highlights the attraction of the Vietnamese market as soft drinks makers seek to capture the country's strong population growth and urbanisation trends. Last Month, Tetra Pak announced it will spend around US$110m on a new facility in Vietnam to cater for beverage suppliers in the region. The plant will have an expandable production capacity of about 20bn packs a year.
Brewers are also flocking to Vietnam. The proposed sale of the country's government-owned breweries, Saigon Beer Alcohol and Beverages Corp (Sabeco) and Hanoi Beer Alcohol & Beverage Corp (Habeco) has reportedly seen a number of international producers show an interest.
Sectors: Soft drinks, Water
