report of heineken vietnam

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<b>REPORT OF HEINEKEN VIETNAM</b>

<b>INDI MKT103 (25/1/2023)</b>

<b>PART A: HEINEKEN VIETNAMPART 1: INTRODUCTION ABOUT HEINEKEN VIET NAM</b>

The company that brews Heineken beer is Heineken N.V. - a Dutch multinationalcompany founded in 1864 in Amsterdam. In 1947, Heineken opened the firstbrewery in Southeast Asia (in Indonesia), which was the door for Heineken to cometo Asia. In 1991, in Vietnam, Heniken entered into a joint venture with SaigonTrading Corporation (SATRA) and created the brand HEINEKEN VIETNAM. Up tonow, HEINEKEN VN has been established for more than 30 years, has 6 factorieswith more than 3,000 employees throughout Vietnam.

Heineken VN produces and distributes the brands Heineken®, Tiger®, Larue,BIVINA, Bia Viet, Strongbow and Edelweiss. The first product produced was TigerBeer in 1993; In 1994, Hoc Mon Brewery (HCMC) first produced Heineken beer.Vision: Sustainable development to become a leading, proud & responsible beerproducer in Vietnam, for a better Vietnam.

Core value: Respect for People & Planet, Enjoy life, Quality, Desire for success.

Nhung ^HS186608 ^{Part 2: The company,}Suppliers, marketingintermediary

3 Phạm Nguyệt Ánh HS186599 Part 2: Competitors,Competitive advantage,Customers

4 Cao Hiền Hòa HS180982 Part 3:demographic,economic

Powerpoint5 Nguyễn Ngọc Thủy

Hs181008 Part 3: Technological,environment

Content6 Vương Hương Trà HS180343 Part 3: Politics, culture Powerpoint

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HEINEKEN Việt Nam (heineken-vietnam.com.vn)

-> Dolf van den Brink: position of Chairman of the Board of Directors andCEO of HEINEKEN global corporation.

-> Mr. Jacco van der Linden: position of President of Asia Pacific region-> Mr. Soren Hagh: position of President of the European region from June 1,2020.

-> Mr. Alexander Koch: CEO of Heineken Vietnam.

-> Mr. Nguyen Ngoc Hiep, Deputy General Director of Heineken Vietnam.-> Mr. Nguyen Van Manh, Deputy General Director of Heineken Vietnam.-> Mr. Le Qui Don, Senior Human Resources Director of Heineken Vietnam. Finance :</b>

- Heineken (Vietnam) financial report for 2021-2023

According to HEINEKEN Vietnam's financial report, the company's revenuein 2022 reached VND 36,000 billion, an increase of 50% compared to 2021.

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The company's profit after tax also increased by 60%, reaching VND 10,000billion.

- HEINEKEN Vietnam's revenue growth mainly comes from the recovery of theVietnamese beer market after the COVID-19 pandemic. In addition, thecompany has also implemented a number of new business strategies, suchas focusing on the high-end segment and expanding market share in ruralareas.

- Specifically, in 2022, the Vietnamese beer market has grown by 10%compared to 2021. HEINEKEN Vietnam has occupied a market share of42%, continuing to be the largest beer manufacturer in Vietnam.

- HEINEKEN Vietnam's key products include Heineken, Tiger, Larue, BIVINA,Bia Viet and Strongbow. Among them, Heineken and Tiger are two high-endbeer brands that account for the company's largest market share.

- HEINEKEN Vietnam is investing heavily in projects to expand production anddistribution. The company currently has 26 factories and 30 distributioncenters nationwide.

- In 2023, HEINEKEN Vietnam targets revenue of 40,000 billion VND andprofit after tax of 11,000 billion VND.

- Heineken ( Global ) financial report 2022 (AMS:HEIA). 2022 financial results.+ Revenue: 28.7 billion euros (up 31% compared to 2021).

+ Net income: 2.68 billion euros (down 19% compared to 2021).+ Profit margin: 9.3% (down from 15% compared to 2021).+ EPS: €4.66 (down from €5.77 compared to 2021).

<b>1.3 R&D: Research and development</b>

- HEINEKEN Vietnam has a research and development (R&D) center locatedin Ho Chi Minh City. This center is equipped with modern equipment and ateam of experienced experts. HEINEKEN Vietnam's R&D Center isresponsible for research and development of the company's beer, beverageand other products.

- Currently, Heineken Vietnam Brewery is a limited liability company thatproduces and distributes fermented drinks, including famous beer brandssuch as Heineken, Tiger, Tiger Crystal, Desperados, Biere Larue, BiereLarue Export , BGI and Bivina in Vietnam, along with Strongbow products.- Outstanding examples for Heineken's R&D.

=> To serve the commercial segment, Heineken Vietnam built a Digital Route ToConsumer system to support the distribution - sales - marketing segment.

qua-tao-ra-40-trieu-euro-cho-tap-doan-176230930094747856.chn )

( Developing new premium beer products to meet the increasing needs ofVietnamese consumers: For example, in 2022, HEINEKEN Vietnam launched anew premium beer product called Heineken Silver. This product is made from 100%pure barley, has a delicious flavor and is suitable for the taste of Vietnameseconsumers.

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( )

=> Improve the quality of existing products: For example, HEINEKEN Vietnam hasapplied new technology to produce Tiger Soju Infused Lager beer, making theproduct taste more delicious and fresh.

<b>( Purchasing: Purchasing</b>

- Heineken's acquisition is the acquisition of Asia Pacific Brewery (APB) bySingaporean food and beverage processing group Fraser and Neave (F&N),completed on 3 August 2012. This deal helps Heineken own 41.9% of sharesin APB, including famous beer brands such as Tiger, Anchor, AnchorSmooth, Anchor Strong, ABC, Darwall's, Heineken, Larue, Myanmar Beer,Tiger Crystal , Sparkling, Tiger Radler, Tiger White, and Strongbow. Operations :</b>Heineken's activities in Vietnam

- Heineken Vietnam is one of the largest beer manufacturers in Vietnam. Thecompany has 6 breweries in Hanoi, Da Nang, Quang Nam, Ho Chi Minh City,Vung Tau and Tien Giang.

+ Heineken Vietnam produces and distributes a wide range of beer products,including:

➢ Heineken (heineken-vietnam.com.vn)➢ Tiger ( heineken-vietnam.com.vn )➢ Larue (heineken-vietnam.com.vn)➢ Vietnamese beer

( Strongbow:

Edelweiss: Heineken Vietnam focuses on the high-end and mid-range segments of the

Vietnamese beer market. The company has succeeded in building premiumbeer brands such as Heineken and Tiger, and is continuing to expand itsmarket share in the mid-range segment through brands such as BIVINA andBia Viet.

- Social responsibility

+ Heineken Vietnam is committed to sustainable development and socialresponsibility. The company has undertaken several social responsibilityinitiatives, including:

➢ The "For a better Vietnam" program aims to raise awareness ofresponsible drinking culture and promote sustainable development.

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➢ The "Heineken Green Bond" program aims to finance sustainabledevelopment projects.

➢ The "Heineken Sustainable Agriculture" program aims to supportbarley farmers in Vietnam.

<b>2. Who are their main suppliers?</b>

<b>- Long Thanh Plastic Company Limited (Long Thanh Plastic) has been a</b>

supplier of plastic safes to HEINEKEN Vietnam for more than 20 years.=>> Ingredients: Heineken Vietnam strives to use local ingredients, including</b>

rice, corn and tapioca starch. Some potential local suppliers include:-> Tan Long Group: Providing cassava starch.

-> Thai Hoa Group: Providing rice and corn.

-> Nam Thai Agricultural Products Company: Providing rice and corn.

<b>- Malt and hops: These two essential beer-making ingredients are not</b>

available in Vietnam, so Heineken has to import them from countries such asGermany, the Czech Republic, and the United States. Some potentialsuppliers include:

-> IBG International Beer Group: Providing malted barley.-> Barth Haas Group: Providing hops.

<b>3. Who are the company's marketing intermediaries that helpthe company to promote, sell and distribute its product to thefinal destination?</b>

<b>➔ Wholesalers</b>

- Wholesalers are people who buy Heineken products from factories andresell them to retailers. They play an important role in distributingHeineken products to stores and supermarkets.

<b>➔ Retailers</b>

- Retailers are those who sell Heineken products directly to consumers.They include grocery stores, supermarkets, restaurants, bars andother retail outlets.

<b>➔ Advertisement</b>

- Heineken uses advertising on television, radio, newspapers, theinternet and other media to promote its products. (VTV, HTV, Tiktok,Facebook, Youtube, Instagram, X, ...)

<b>➔ Public Relations</b>

- Heineken engages in public relations activities to build the brand'simage and reputation.

<b>➔ Direct marketing</b>

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- Heineken uses direct marketing to reach consumers through email,direct mail and other means.

4: Competitors

Market share of beer companies in Vietnam 2021

● Originating from a small brewery founded by Victor Larue in Saigon in 1875.Mentioned as a Vietnamese beer and beverage brand. Sabeco has developedmany famous product lines such as: Saigon Special beer, 333 beer, Lac Viet beer,Saigon Lager beer,...

● According to the fourth quarter 2022 financial report, the last quarter of 2022Sabeco achieved revenue of more than 10,029 billion VND, an increase of 11%over the same period in 2021. Sabeco is the largest competing brand withHeineken in the Vietnamese market. In 2021, Sabeco's beer market share willaccount for 33.9%, second only to rival Heineken.

<b>Carlsberg</b>

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● Carlsberg entered Vietnam in 1993 through a joint venture with a brewery in Hue.Carlsberg Vietnam produces Carlsberg, 1664 Blanc, Tuborg, Tuborg Ice,Somersby, Huda, Huda Ice Blast, Huda Gold and Halida.

● Among the top 4 brands accounting for 90% of the beer industry market share inVietnam in 2021, along with Heineken, Habeco and Sabeco, of which Carlsbergaccounts for 8.7% of the market share. In 2021, Carlsberg's net profit increased by13% to 6.8 billion kroner. After the difficulties of the pandemic, Carlsberg isconstantly growing, regaining market share in beer production and distribution. The predecessor of Hanoi Beer - Alcohol - Beverage Company (HABECO) was theHommel brewery built in 1890 by the French. Habeco produces and distributesfamous product lines: Hanoi Draft Beer, Truc Bach Beer, Hanoi Beer Premium,Hanoi Canned Beer,...

● According to updated data from Habeco's financial statements, at the end of thethird quarter of 2022, the Corporation achieved revenue of 2,476 billion, anincrease of 42.8% compared to March 2021. In the market share of the beerindustry in 2021, Habeco accounts for about 7.4%, ranking 4th behind competitors:Heineken, Sabeco and Carlsberg.

<b>5: Competitive advantage</b>

● Heineken Group (founded in 1864) is one of the oldest and largest beer productionand trading enterprises in the world. By 2019, Heineken operated 164 factories in70 countries and territories, producing 348 different types of beer and creatingnearly 85,000 jobs. In 2021, Heineken's revenue will reach nearly 22 billion euros,net profit will reach 3.5 billion euros.

● In Vietnam, on December 11, 2022, Prime Minister Pham Minh Chinh had ameeting with Heineken Global General Director, Mr. Dolf van den Brink, announcingHeineken's investment in Vietnam (Heineken joint venture and Saigon TradingCorporation). Gon - Satra) has reached 1 billion USD and within the next 10 years,it is expected to invest another 500 million USD, as well as propose content relatedto tax policy. => Heineken Vietnam has abundant financial resources from theparent company

● Heineken Vietnam Brewery also has an outstanding advantage compared todomestic beer companies thanks to the centralized signing of contracts to purchaseraw materials around the world. Up to 50% of Heineken Vietnam Brewery's rawmaterial purchase contracts are signed by the parent company. This allows thecompany to have an advantage in input material costs.

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<b>5.2 Take advantage of marketing strategies from the parent company</b>

● A unique advantage of Heineken Vietnam Brewery is that it can take advantage ofmarketing strategies from the parent company. By taking advantage of global scalewhile adapting to the domestic market, Heineken Vietnam Brewery has advantagesin marketing and branding. For example, the UEFA tournament campaign in whichthe company organized the tournament in major cities while the special edition wasextended to retail outlets.

<b>6.2 Enterprise:</b>

● To ensure wide coverage, Heineken also brings its products to both distributionchannels: modern and traditional.

● <b>Traditional distribution channels After production, goods will be delivered to</b>

consumers in the following order: manufacturer distribution intermediary consumer. In this channel, Heineken distributes its products to grocery stores,restaurants, and bars.

-● <b>Modern distribution channels are when the manufacturer and distribution</b>

intermediaries will combine together into an integrated whole. That is, afterproduction, goods will be circulated from this unified entity to consumers. For thisdistribution channel, Heineken products are sold in supermarkets or conveniencestores such as Vinmart, Mega Market, Big C, Circle K...

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Heineken has 76,136 employees.

42% of Heineken employees are women, while 58% are men.The most common ethnicity at Heineken is White (52%).23% of Heineken employees are Hispanic or Latino.12% of Heineken employees are Black or African American.The average employee at Heineken makes $70,210 per year.

Heineken employees are most likely to be members of the democratic party.Employees at Heineken stay with the company for 4.5 years on average.

Several factors can influence consumer purchasing power and spending patterns in theeconomic environment. Firstly, Vietnam has a low unemployment rate, with the percentagebeing 2.2 in 2019. The number is still stable without any sudden increase for the followingyears

(The economic context of Vietnam - Economic and Political Overview - Nordea TradePortal, n.d.). According to the source World Economic Outlook Database in October 2020from the International Monetary Fund (IMF), the GDP of Vietnam in 2020 is around$340.60 billion, and

the number is expected to increase to $404.91 in 2020 (The economic context of Vietnam- Economic and Political Overview - Nordea Trade Portal, n.d.). Moreover, the economicand political changes have transformed Vietnam into a middle-income country comparedto being

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the poorest country in the past (Overview, 2020). According to The World Bank inVietnam, the GDP per capita of Vietnam in 2019 has reached around $2,700, with thenumber being increased by 2.7 times compared to the period between 2002 and 2018(Overview, 2020).

Furthermore, more than 45 million people got out of poverty, and ethnic minorities are theonly group that has remained poor in Vietnam (Overview, 2020). Supported by theeconomic facts above, it can be seen that Vietnamese people are having an increase intheir income. Referring to figure 5, the food and beverages section shows the mostpercentage in consumer expenditure (Figure 5). It can also be inferred that Heineken beerhas the most opportunities to expand in Vietnam compared to other sectors. Therefore,they are more likely to have more demands on services such as leisure and recreation,health goods and

medical services, and the percentage of food and beverages will also have a parallelincrease with people’s income

● Technology products (Digital PRODUCTS): Heineken Vietnam has applieddata analysis methods to optimize machine operations, minimize losses andeffectively plan beer production.

Digitalization: The company has carried out digital transformation in productionand business activities

● Exchange: Heineken Vietnam has switched to installing 100%

environmentally friendly green refrigerators, using energy-saving fans, LEDlighting, hydrocarbon refrigerants and equipped with an energy managementsystem. quantity

● Reuse/Recycle (Loop): Heineken Vietnam now has almost no landfill waste,thanks to reusing or recycling 99% of waste and by-products

=> In particular, Heineken Vietnam has officially announced its productionprocess using 100% renewable energy in Vietnam

<b>4. Environment:</b>

Heineken, the global brewer, is committed to reducing its environmental impact bycontinuously improving its value chain and complying with environmental laws. Thecompany has set major commitments to reduce CO2 emissions and protect waterresources. To achieve these commitments, Heineken has developed a number ofprograms such as “Drop the C” to reduce emissions across its entire value chain,“Every Drop” to improve the health of watersheds and “Innovation/new products” tominimize potential environmental impact. Heineken also assesses the water stress

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