Twin passions promise bonanza for Vietnam brewers
HANOI - Two of Vietnam's overriding passions -- soccer and beer --
promise a
potent boost for Vietnam's brewers when glasses are raised to toast the
start of the World Cup soccer finals in late May.
When the previous World Cup was played in France in 1998, Vietnam's beer
output surged 15 percent in the first eight months of the year.
Brewers expect an even bigger bonanza this year, when the finals are
played
for the first time in Asia, bringing matches at more sociable hours for
Vietnamese beer and soccer fans.
The tournament starts in Japan and South Korea on May 31 and beer is
Vietnam's drink of choice to accompany televised matches.
"Brewing more beer is the target of all breweries now and they are
trying
hard as output so far is not enough to meet demand," an official at the
state-run Vietnam Alcohol, Beer and Beverages Corp (Vinabeco) told
Reuters.
"The hot weather in the south and the upcoming World Cup are two good
reasons to push up output this year."
Last year Vietnam, which has a mainly tropical climate, produced 816.7
million litres (1.8 billion pints) of beer, up 4.8 percent from the
previous
year, putting per capita consumption for its 80 million people at around
10.2 litres.
Industry data shows comparative consumption in China and Thailand at 14
and
18 litres respectively.
A sales executive at Vinabeco's Saigon Beer Co said his firm was already
producing at maximum capacity.
All sold out
"Every month we sell out all the beer we brew. Anyway, we still expect a
20
million-litre increase in our output this year."
He said Saigon Beer sold 240 million litres in 2001, nearly 30 percent
of
Vietnam's total output, and this year aimed for 260 million litres.
Government data shows beer output in the first quarter this year rose to
188.1 million litres, 5.1 percent up on last year.
Vinabeco affiliates turn out 60 percent of the total, while
foreign-invested
breweries and local plants produce 20 percent each, along with an
insignificant volume of imported beer.
Well known world and regional brands Heineken, Carlsberg, Fosters, San
Miguel and Tiger are all brewed in communist-ruled Vietnam and come in
cans
and bottles costing 53-66 cents, compared with just 16 cents for a glass
of
local draught beer.
The Vinabeco official gave no output target for 2002 but said a
development
masterplan for the sector approved by the government last year projected
output of 1.2 billion litres in 2005 and 1.5 billion in 2010, 60-70
percent
of which would come from domestic plants.
"Vietnamese people regard beer as a thirst-quenching drink -- that's why
it
is popular," the Vinabeco official said. "But people are also worried
about
beer bellies and that could mean that many started switching to liquor.
"I think liquor consumption will overtake that of beer in the long run."
She said liquor consumption was already increasing as living standards
improved in Vietnam, which has seen a annual per capita income doubling
to
$400 in 2000 over 1994.
In February, official media cited industry data as showing that people
in
the country drink 4.2 billion litres of beverages a year.
Of the total, 42 percent is tea, followed by beer at 18 percent, milk
nine
percent, fruit juice and filtered water five percent each and other
drinks
10 percent.
Reuters - April 18, 2002
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