Japan-based multinational brewing and distilling firm Suntory recorded organic revenue of JPY107.8 billion ($727.4 million) in the first three quarters of this year, according to the firm’s report for the period in Vietnam.
The figure was up 4.6% year-on-year on a neutral currency basis, but up 10.1% upon the inclusion of currency effects, amid the depreciation of the JPY against many currencies, including the VND.
The figure made Vietnam the biggest Asia-Pacific market for Suntory. Overall, Suntory earned a revenue of JPY273.7 billion ($1.85 billion) in the nine-month period, up 1.9% year-on-year on the neutral basis of currency. However, the profit from the region fell 10.4% to JPY32.3 billion ($218 million).
Reviewing the performance in Vietnam, Suntory stressed that the economic recovery in the country is taking longer than expected, leading to a sluggish beverage market. In particular, the revenue growth rate in Vietnam was 23% in the first quarter of this year, then 1% in Q2, and negative 6% in Q3.
Despite the downtrend, some Suntory products still trended well, namely TEA+ Oolong bottled tea and Sting energy drinks.
Previewing Q4/2023, Suntory said it would continue to increase promotional activities in Vietnam for core brands to boost demand.
In Vietnam, Suntory and PepsiCo established a strategic alliance in 2013, known as Suntory PepsiCo Vietnam Beverage. Together, the joint venture’s portfolio in Vietnam features popular brands including Pepsi, 7 Up, Mirinda, Mountain Dew, Gatorade, Sting, Lipton, TEA+ tea; Aquafina, Revive, Good Mood, Tropicana Twister, and All-Free.
Vietnam and Japan have just lifted their relations to a "comprehensive strategic partnership for peace and prosperity in Asia and the world." Japan has become the sixth nation with which Vietnam has a comprehensive strategic partnership, besides China, Russia, India, South Korea, and the U.S.
Registered foreign direct investment in Vietnam reached $28.85 billion in the year through November 20, up 14.8% year-on-year, according to the Ministry of Planning and Investment. Japan was the fifth-biggest investor with $3.11 billion in the period, down 32.5%.