Hanoi Liquor JSC (Halico), producer of Hanoi Vodka, made a loss of over VND2.3 billion ($98,300) in the second quarter, posting losses for 21 consecutive quarters.
The firm achieved a net revenue of VND34.6 billion ($1.48 million) in the period, a 86% rise year-on-year, according to its financial report.
In the first half of the year, Halico lost about VND6 billion ($256,000), down more than half compared to the same period last year.
As of June 31, the company recorded an aggregate loss of VND476 billion ($20.34 million).
For the whole year, Halico is expected to lose nearly VND25 billion ($1.07 million) due to plunging alcohol consumption and increased costs related to supply chains. The producer also ascribed the loss to changing consumer requirements on product quality, image, and packaging.
Besides, Halico said it faces fierce competition from domestic and foreign drinks manufacturers. Alcohol producers also face unfair competition from some private establishments which evaded tax and made counterfeit goods, it claimed.
Halico aims to produce one million liters of alcohol and 2.25 million liters of vodka in 2022, equal to 97% of last year. The company plans to restore traditional markets post-pandemic and find new export regions, focusing on Asia and Europe, as well as markets for 70- and 90-degree alcohol products and hand sanitizer.
In 2011, Diageo, one of the world's largest wine producers, spent VND1,800 billion ($76.86 million) to acquire 45.57% of Halico.
Halico was originally built by the French in 1898, colonial times.