Carlsberg continues to grow in Vietnam despite declining beer market: CEO

Carlsberg continues to record growth in the declining Vietnamese beer market, said Carlsberg Breweries A/S CEO Jacob Aarup-Andersen at the performance review of the Danish brewer for the first half of this year.

Carlsberg’s sales volume in Vietnam grew by “low-single-digit” percentages in the period versus a double-digit growth in H1/2023. Meanwhile, the Vietnamese market declined by an estimated low-single-digit percentage, the CEO added.

While consumers’ sentiment remained weak, Carlsberg saw early signs of the stabilization of the local beer market, the executive emphasized. The brewer saw growth in all categories, including beer, soft drinks, and water. International premium brands, in particular 1664 Blanc and Tuborg, delivered strong growth, while local mainstream brand Huda also continued to grow, according to Carlsberg.

Carlsberg also strives to solve “capacity constraints” during the peak season and avoid future “out-of-stock” situations, Jacob Aarup-Andersen noted.

For its global performance, Carlsberg said its sales volume reached 53.4 million hectoliters, up 2% year-on-year, while its revenue increased 2.6% to DKK38.77 billion ($5.75 billion).

“Income from associates declined, mainly due to lower income from associates in China and Vietnam, partly offset by higher income from Portugal,” the firm stressed.

In Asia, Carlsberg’s beer volumes grew by 2.5%, supported by growth in China, Laos, and Vietnam.

In its H1/2024 performance review, Heineken said the Vietnamese beer market declined by a low-single-digit but showed signs of stabilizing in the second quarter.

Reviewing the Asia Pacific region, Heineken said it is ready to gain a larger and profitable share of the region in line with its growth prospects amid short-term challenges, especially in Vietnam as its “largest and most profitable market.”

In Vietnam, Heineken estimated that even amid the market decline, its “net revenue increased organically in the low-teens, driven by high-single-digit volume growth.”