Vietnam’s Saigon Beer Alcohol Beverage Corporation which goes by the moniker Sabeco is looking to take a majority stake in Saigon Binh Tay Beer Group Corporation more commonly known as the Sabibeco Group, which makes beer under the brand name Sagota, Tuoi Tre is reporting. Sabeco and several related parties already hold 22.7 percent of Sabibeco and it intends to increase this stake to 65.9 percent.
Vietnam’s beer market has reported some challenges over the last couple of years from stricter enforcement of drink driving laws, to belt-tightening among consumers on the back of broader economic challenges, to greater competition and an increase in imported beers. As a result, a number of beer makers in Vietnam have recorded negative or slower than expected growth. In this context, this announcement could be the beginning of an era of consolidation within the industry.
See also: What’s Happened to Vietnam’s Beer Market? Unpacked 2024