Strategic alliance between PepsiCo Inc. and Suntory Holdings Limited continually maintaining its leading position in Vietnam's F&B market.
On April 2 Suntory PepsiCo Vietnam Beverage (SPVB) was honored to receive a Golden Dragon Award from Vietnam Economic Times, presented to foreign-invested enterprises operating effectively and actively contributing to Vietnam’s economy. The award is testament to the efforts and contributions made by SPVB to the communities in which the company does business.
SPVB is a strategic alliance between PepsiCo Inc. and Suntory Holdings Limited, officially formed in April 2013 and increasingly asserting its leading position in the domestic food and beverages (F&B) market.
Founded in 1899, Suntory is a major multi-national beverage company with 337 group companies and around 42,000 employees in Japan, the US, Europe and Asia Pacific. Suntory Group’s corporate philosophy is “In Harmony with People and Nature”. It promotes corporate activities that deliver the highest quality products and services to its customers and contributes to the fruitful development of culture and lifestyles as well as to the achievement of a sustainable global environment.
Suntory accelerated its global strategy and expanded its beverage business in Southeast Asia following the establishment of Suntory Beverage & Food Asia Pte. Ltd. in Singapore. Expansion into Vietnam is a key part of its long-range plans.
PepsiCo, meanwhile, is a global F&B leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales.
The alliance between the two is expected to build on PepsiCo’s existing position in Vietnam and create new growth opportunities for PepsiCo and Suntory in the market. PepsiCo is one of the leading players in Vietnam’s liquid refreshment beverage space and the alliance is designed to combine the capabilities of both companies in ways that are mutually beneficial to their businesses, customers and consumers.
On February 23, SPVB was also honored to receive a Vietnam High Quality Goods Certificate, as voted by consumers. This was the 15th time SPVB received certification from the Business Association for the High Quality of Vietnamese Products under the Ho Chi Minh City Enterprise Association.
As a good corporate citizen, SPVB constantly strives to contribute to the community through fully complying with the law on taxes, making significant contributions to the State budget, and conducting product quality management, providing products of the best possible quality under the standards of Suntory and PepsiCo as well as Vietnam’s food safety requirements.
Conducting business responsibly and paying attention to consumers and the environment, SPVB constantly takes the initiative in creating diverse products of the best quality and has won the confidence of Vietnamese consumers for many years. Besides the Vietnam High Quality Goods Certificate its products have also earned other awards such as a Top 10 Vietnamese Brands Trust & Use Certificate and a Vietnam Golden Brand Food Award in 2014.
Vietnam is a priority growth market of SPVB. According to data from Euromonitor International, the market size for soda and water in Vietnam, Cambodia, Laos, and Myanmar is forecast to reach $1.09 billion in 2018, up 70 per cent compared to 2014. Strong economic growth pushes up incomes and demand for soft drinks also increases, especially among young people.
BMI Research also forecast that the consumption of non-alcoholic drinks will increase by 2.7 billion liters in 2017, corresponding to an average growth rate of 7 per cent per year. Revenue in the beverage industry is also forecast to record an average increase of 14.2 per cent per year. Vietnam Report, meanwhile, showed that the F&B industry in general is always in the Top 5 industries with the highest profit rate in Vietnam, with a return on assets (ROA) of about 15 per cent and a return on equity (ROE) of 43 per cent.