When it comes to the origins of Sapporo beer, most people automatically think of Japan. However, you may be surprised to learn that Sapporo beer is now being brewed in Vietnam. This unexpected move has raised questions and sparked curiosity among beer enthusiasts. In this article, we will delve into the reasons behind Sapporo’s decision to produce their renowned beer in Vietnam.
A Collaborative Joint Venture
In 2010, Sapporo formed a joint venture with a state-run tobacco company in Vietnam, with the intention of launching Sapporo Vietnam. The belief behind this partnership was to tap into the growing Vietnamese beer market, expanding their brand presence in Southeast Asia.
Strategic Expansion and Market Share
Although the initial joint venture showed promise, Sapporo faced challenges in gaining significant market share in Vietnam. Despite their efforts, their market share remained stagnant at just 1%. This lack of substantial growth led Sapporo to reassess their strategy and explore new avenues to increase their market penetration.
Full Ownership for Enhanced Control
As a result of their market struggles, Sapporo made the decision last year to acquire full ownership of Sapporo Vietnam, turning it into a wholly owned subsidiary. This move allowed Sapporo to have more control over the production, distribution, and marketing of their beer in the Vietnamese market.
Aims to Capitalize on Vietnamese Beer Consumption
Vietnam is known for its vibrant beer culture with a growing appetite for craft and international beers. By producing Sapporo beer locally in Vietnam, the company aims to capitalize on this increasing demand and cater to the preferences of Vietnamese beer lovers who appreciate diverse and high-quality brews.
Access to Ingredients and Brewing Expertise
An additional advantage of manufacturing Sapporo beer in Vietnam is the availability of local ingredients. Vietnam is renowned for its superior quality barley and hops, which are essential ingredients for brewing beer. By using locally sourced ingredients, Sapporo can maintain the authentic taste and quality of their beer.
Reduced Costs and Increased Efficiency
Cost-effectiveness is a vital factor in any production process, and brewing beer is no exception. Sapporo’s decision to manufacture their beer in Vietnam allows them to take advantage of lower production costs and potentially increase their profit margins. Additionally, being closer to the Vietnamese market reduces transportation costs and ensures fresher beer for consumers.
Expansion Into Southeast Asia
Vietnam serves as an excellent strategic location for Sapporo to expand its reach into other Southeast Asian countries. With its strong economic growth, expanding middle class, and increasing disposable income, the region presents a lucrative opportunity for Sapporo to establish a solid regional presence.
Adapting to Local Taste Preferences
Each country has its unique taste preferences when it comes to beer. By brewing Sapporo beer in Vietnam, the company can adapt its brewing techniques and recipes to cater to the local taste preferences of Vietnamese beer drinkers. This customization ensures that Sapporo can provide an optimal beer drinking experience that resonates with the local market.
Embracing Sustainability and Corporate Social Responsibility
In recent years, consumers have become more conscious about sustainability and corporate social responsibility. Producing Sapporo beer in Vietnam allows the company to leverage Vietnam’s commitment to sustainable practices and environmental stewardship. This includes initiatives such as renewable energy in production facilities and responsible water usage.
Enhanced Distribution and Market Accessibility
By having a local production facility in Vietnam, Sapporo can easily distribute their beer throughout the country without facing import restrictions or high tariffs. This enhanced accessibility ensures that Sapporo beer is readily available in various regions of Vietnam, meeting the demand of consumers across the country.
Positive Contributions to the Vietnamese Economy
The decision to produce Sapporo beer in Vietnam not only benefits Sapporo but also contributes to the Vietnamese economy. The establishment of a local brewery offers employment opportunities for the local workforce and stimulates economic growth through increased production and consumption of goods.
Cultural Exchange and Global Brand Recognition
Sapporo’s decision to manufacture their beer in Vietnam fosters a cultural exchange between Japan and Vietnam. It allows Vietnamese beer enthusiasts to experience an internationally recognized brand, while Sapporo gains exposure and recognition within the Vietnamese market, strengthening their global brand image.
