APB Expands in Vietnam

In an effort to bolster its leading position in Vietnam’s premium beer market, Singapore-based Asia Pacific Breweries (APB) is expanding its brewing capacity in the south of the country by 50%.

The brewer spent $63 million to increase its Vietnam brewing capacity by 800,000 hectoliters per annum, from 1.5 million hectoliters to 2.3 million hectoliters.

The move will purportedly allow Vietnam Brewery Limited (VBL) – 60% of which is owned by APB – to further strengthen the leadership positions of its Tiger and Heineken beers in the Southeast Asian country’s premium beer market.

“Heineken beer has been consistently delivering double-digit growth and is clearly heading the league of the premium beers in Vietnam. Also, our sales volume for Tiger beer in Vietnam is the largest as compared to any other country in the world,” said Koh Poh Tiong, APB’s chief executive.

“In the past decade, APB has invested strongly in growing the brands to reach the status where they are today. With the additional capacity now in place at VBL, it will make it technically feasible for us to continue to build on the success of these brands by driving higher volumes and more importantly, upholding their leadership position in the premium beer segment.”

VBL also produces and distributes Bivina, Amber Stout and Coors Light, which made its debut in Vietnam in May 2006.