Japanese beverage maker Suntory earns Q1 revenues of $250 mln in Vietnam

Japan-based brewing and distilling firm Suntory, a partner in Vietnam-based Suntory PepsiCo Vietnam Beverage Co. Ltd., earned revenues of JPY39.6 billion ($250.5 million) per organic basis in the Southeast Asian country in the first quarter of this year.

According to the firm’s quarterly report, the figure went up 0.9% year-on-year per currency neutral basis; but was up 8.7% otherwise (including currency effect).

It attributed the growth to continued marketing efforts, noting that it was better than negative 6% in Q3/2023 and negative 5% in Q4/2023.

In Vietnam, sales volume increased thanks to strong performance of its core brands like Pepsi and Aquafina amid a moderate economic recovery.

Overall, in the Asia-Pacific market, Suntory recorded revenues of JPY98.5 billion ($623.1 million), up 4.5% year-on-year per currency neutral basis and 12.5% otherwise. The performance in Vietnam was the best in the region, followed by Thailand with JPY25.7 billion ($162.6 million).

Suntory PepsiCo Vietnam Beverage Co. Ltd. was established as a strategic alliance by Suntory and PepsiCo in 2013.

Together, the joint venture’s portfolio in Vietnam features popular brands including Pepsi, 7 Up, Mirinda, Mountain Dew, Gatorade, Sting, Lipton, TEA+, Aquafina, Revive, Good Mood, Tropicana, and Twister.

In June, Vietnam's Ministry of Finance said it was considering a 10% excise tax on sugary drinks as part of the draft amendments to the excise tax law. The ministry noted that the current legal framework, including excise tax law 2008 along with amendments and guiding documents, had yet to tax sugary drinks. It has proposed a 10% tax on drinks with sugar content of over five grams per 100 milliliters.