JANPA’S SAPPORO TO BUILD BREWERY IN VIETNAM
Sapporo Holdings Ltd. (Japan) will build a brewery in Long An Province after buying a majority stake in Kronenbourg Vietnam Ltd. (KVL)This beer plant will be the first brewery to be built by a Japanese brewer in Vietnam – where beer demand increases more than 10% or more per annum.
Sapporo said the group would own 65% of Kronenbourg Vietnam (KVL), a joint venture 50-50 between Danish brewer Carlsberg Brewery A/S and Vietnam National Tobacco Corp. (Vinataba), for US$25.35 million. Carlsberg will transfer its whole 50% stake in KVL, while Vinataba will sell 15%. Therefore, Vinataba’s stake in the joint venture will fall to 35% after the deal is completed.
A Vietnamese executive in Kronenbourg Vietnam said the negotiation was now completed while procedures are expected to be fulfilled in January 2010. According to Sapporo, Kronenbourg Vietnam will be renamed Saporo Vietnam.
After that, the joint venture will begin construction of a brewery in Long An to produce Sapporo’s high-quality Black Label beer and begin distribution of the products in early 2012 through Vinataba’s sales network. The joint venture aims to sell 150,000 kiloliters of beer, or a market share of 3% in Vietnam, in 2019.
By constructing the first brewery in Vietnam, Sapporo seeks to establish the Sapporo brand, swiftly gain a market share and expand business in Vietnam.
(Source: Vietnam investment news)