Japan-based brewing and distilling firm Suntory, a partner in Vietnam-based Suntory PepsiCo Vietnam Beverage, earned an organic revenue of JPY143.4 billion ($947 million) from beverage business in the Southeast Asian country in 2023.
The figure was up 2.2% year-on-year on a neutral currency basis, but up 7.2% upon the inclusion of currency effects, amid the depreciation of the JPY against many currencies, including the Vietnamese dong (VND).
Organic revenue refers to the income generated by a company through its existing operations and resources. This includes sales of its existing goods and services, expansion of its client base and expansion of sales to other geographic regions.
In a 2023 performance review report, Suntory said that while it takes time for the Vietnamese economy to recover, revenue was on par with the same period of the previous year due to the ongoing contribution made by the effect of price revisions in major markets.
In the beverage business in Vietnam, sales volume of major brands, including the mainstay energy drink Sting and tea beverage TEA+, remained strong as a result of improved marketing activities, despite a deterioration of business confidence and the declining demand following last year’s demand expansion.
Preview 2024, Suntory noted it would steadily tap into recovering demand, strengthen sales activities, while striving to accelerate further growth of core brands such as energy drink Sting and tea beverage TEA+.
While economic growth in Vietnam is recovering, Suntory continues to face a tough competitive environment, the firm added.
Globally, Suntory recorded a revenue of JPY1,591.7 billion ($10.5 billion) in 2023, up 9.7% year-on-year.
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.
In March 2024, a representative of U.S beverage giant PepsiCo said the firm would invest some $390 million to build two factories in the northern province of Ha Nam and the southern province of Long An, both powered by renewable energy.