Food Pacific Manufacturing Journal

A Thirst for Beer & Milk

Vietnamese consumers are drinking milk and beer far more than those in neighbouring South East Asian markets. Growth in both segments is being driven by a stable government, vibrant economy, rising disposable incomes, and a youthful population willing to try and pay for something new.

Quaffing beer in Viet Nam is an experience: It runs the gamut from light, lager-like brew - bia hoi (fresh beer) - in mom-andpop pubs to craft beer influenced by Czech and Belgian techniques and flavoured with tropical fruits. In the last decade, investments by foreign brewers Carlsberg, Anheuser Busch-InBev and Heineken have made inroads on the dominance of state-run brewers Habeco and market leader Sabeco. So, whilst bia hoi remains the daily beer of most Vietnamese drinkers, domestic brewers have not been taking chances. Not only are they brewing more fresh beer, they’re producing in far more sophisticated facilities, and expanding brands in packaging designed to appeal to more hip, cash-rich 20- to 40-year-olds.

When it comes to milk, the industry is even far more complex. Dairy manufacturers in Viet Nam have to rely on imports, since local milk production is low and cannot keep up with requirements. Processed dairy imports are part of the mix for a growing population with a rapidly increasing per capita income.