HCMC – The issuance of Government Decree 100 banning drink driving and the Covid-19 pandemic, as well as multiple rumors spread by its rivals saw the market share of the Saigon Beer-Alcohol-Beverage Corporation (Sabeco) in the country shrink in the first half of 2020, according to a representative of the brewery.
Speaking at its 2020 annual general meeting for shareholders on June 30, Sabeco general director Neo Gim Siong Bennett admitted that both Sabeco and Vietnam’s economy had faced multiple difficulties in the first six months of 2020.
In early 2020, the beer industry was suddenly hit hard by Decree 100. Next, the social distancing order resulting from coronavirus led to many beer stores shutting down, plunging the demand for alcohol.
“The firm closed down some of its beer factories during the hardship and suspended work on the beer plant expansion project in HCMC’s outlying district of Cu Chi, which is set to be completed, as a way to survive the coronavirus pandemic,” Bennett noted, adding that with increased efforts, the firm still made profits but its revenue dipped.
The leader of the brewery noted that Sabeco witnessed positive movements in May and June and its upward spiral was expected to continue in the upcoming months.
In the fourth quarter of 2019, Sabeco faced trouble due to rumors spread by its rivals, which negatively affected its sales, said the representative of Sabeco.
Although Sabeco’s market share dropped in localities where the false rumors were rife, the firm had successfully ended the downward trend of its market share to ensure its operations were more stable, Bennett added.
Sabeco looks to make VND23.8 trillion in revenue and VND3.25 trillion in after-tax profit this year, down 37% and 39%, respectively, year-on-year. The targets are appropriate and based on the country’s economic growth and recovery after the coronavirus pandemic.
By Viet Dung