E-Malt.com News article: Vietnam: Asia Pacific Breweries’ subsidiary launches new bottling line ‘to cater the strong and rising beer demand’

To meet robust and surging beer demand, Vietnam Brewery Limited (VBL) in which Asia Pacific Breweries Ltd (APB) holds a 60% interest, on August, 27 commissioned a new bottling line at its brewery in Danang, Vietnam, the parent company announced.

“The commissioning of the new bottling line marks a significant milestone for VBL in Danang where the brewery produces the popular Larue beer, which has a heritage of over 100 years. While Larue beer enjoys a strong following in the Danang and Quang Nam Provinces, it is also available in over 40 other provinces in Vietnam where the brand experienced high double-digit growth in the past two years. With the new bottling line in place, our Danang brewery is now better equipped to cater to the strong and rising beer demand. More importantly, this move enables us to sharpen our competitive edge and efficiency to prime ourselves for more sustainable growth ahead for the APB Group in Vietnam,” Mr Chris Kidd, Regional Director, IndoChina, APB, said at the opening of the new line.

The investment is part of a multiphase programme which will double the brewery’s capacity in the next few years. This phase also includes investments in a warehouse, fermentation tanks and a new brewhouse. Expansion work will be completed in 2011.

The investment underlines the success of APB in and its commitment to the Vietnamese beer market. The brewery in Danang is one of five breweries that APB owns in Vietnam. Through its joint venture with SATRA in VBL, it also oversees brewery operations in Ho Chi Minh City, Tien Giang and Quang Nam where brands such as Tiger, Heineken, Larue and BGI are brewed. Meanwhile, APB taps on the opportunities up in northern Vietnam through its wholly-owned Asia Pacific Brewery (Hanoi) Limited. Collectively, they maximise market coverage and deliver synergies for APB in Vietnam.

Vietnam, Laos and Cambodia make up the Indochina region of the APB Group. The region has been a consistent star performer for the Group, turning in robust revenue and Group Profit Before Interest, Taxation and Exceptional Items (PBIT) year-on-year. In the first six months ended 31 March 2010, the region generated a revenue of S$503 million and reported a PBIT of S$130 million.




27 August, 2010