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Cider defensive move Strongbow Vietnam
The beer market in Vietnam is dominated by larger beer market with a per capita consumption of 36.75 litres in 2015. The market is dominated by regional local brands such as Bia Saigon and Bia Hanoi and Heineken owned Vietnam Breweries which brings Tiger, Heineken and many other smaller brands. The largest volumes are fresh bia (bia hoi) often unbranded, low in alcohol (aka 3%) which is light and easy to drink. In the South fresh beer is typically served over ice, not only for chilling but also to make the taste even lighter.
The beer market competition in Vietnam is heating up with Masan’s brewery receiving a US$1.1 billion investment from Thai Singha Beer (owned by Thailand’s Boon Rawd Brewery).
Heineken added a new brand to the local portfolio with Strongbow cider available in four flavours; Gold, Honey, Red Berries and Elderflowers. Prior to Strongbow’s launch in November 2015, Bruntys and Magners has given cider the largest distribution and promotional push in Vietnam. Other brands available are mostly in venues catering to to foreign nationals such as Rekorderlig and Westons..
Cider is not well understood by Vietnamese consumers. Sales remain very much dependent on an premise push from promotional staff. The potential exists to appeal to a light and sweet taste preference amongst Vietnamese consumers. However Cimigo doubt that that this is a serious offensive to build a cider market we Strongbow, we suspect it is a defensive move to curb inroads from exiting cider brands and protect the core larger beer brands from share erosion. Building a loyal segment of drinkers is likely to remain the domain of brands like Bruntys and Magners.
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