This upcoming Tet holiday, Saigoneers are projected to down some 40 million liters of beer and 45 million liters of soft drinks.
According to the Ho Chi Minh City Department of Industry and Trade, reports VnExpress, the above-mentioned amount of beverages means that, on average, each Saigon resident will have to consume five liters of beer and fizzy drinks during Tet.
The time leading up to the Lunar New Year is Vietnam's biggest production period, when companies push sales and consumers are willing to spend more. This year is no different, as Saigon businesses have earmarked roughly VND17 trillion (US$755 million) just for producing and stockpiling goods to cater to Tet shoppers. The volume of goods is also expected to increase from 25-45% compared to last year.
Dan Tri reports that Tet is a good business opportunity for all markets, but the food and beverage (F&B) industry usually takes the cake as the most profitable of all. It’s predicted that biscuit producers might enjoy a 40% boost in sales, while the Tet period also accounts for 28% of beverage companies’ yearly income.
According to Tran Thai Ha, a representative at market analysis firm Nielsen Vietnam, beer, soft drinks, coffee and confectionery remain the most popular products during the holiday period. However, there are some differences regionally: beer and beverage sales have skyrocketed in the south, while northern residents have a fondness for sweet treats.
However while most F&B companies will rake in considerable profits this coming Tet, beer brands may face some difficulty, as according to Kenh14. Since January 1, 2016, the beverage has been listed as a special consumer goods; the government currently taxes products on this list at 55%, but this figure is set to increase to 60% and 65% in 2017 and 2018, respectively.
Vietnam’s penchant for alcohol has helped the country top many alcohol consumption lists worldwide. The Southeast Asian nation is currently among the top 10 alcohol consumers globally, while it ranks 11th in beer consumption.
[Photo via Zing]
