Habeco's divestment delayed due to previous commitment
The main hurdle in the divestment process of Hanoi Beer Alcohol and Beverage (Habeco) is its existing contract with Carlsberg, said Vice Minister of Industry & Trade Do Thang Hai.
"Commitments between the two concerned parties must be fulfilled before divestment, meaning they have the right of first refusal in purchasing government stakes," Hai said in a government's briefing on June 2.Carlsberg currently is a strategic shareholder in Habeco, with a holding of 17.51% stake, the Danish brewer has shown interest to hold a majority stake in Habeco through purchasing 51% of Habeco’s stakes.
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"Thirdly, from my standpoint, is the lack of effort between government agencies in the process of divestment and equitization," Hai added.
In recent meetings, the government has urged ministries and government agencies to carry out the process of equitization and divestment as scheduled.
In an email to Hanoitimes, the Danish brewer stressed its support to the Government's divestment agenda "we endeavor to serve as a loyal partner for the Government throughout the divestment process," said Carlsberg's representative.
"Carlsberg has been a strategic investor since 2008 with pre-emption right. However, this does not necessarily mean that we should not pay a fair price for a State asset. We recognize that Hanoi beer brand is a good brand, Habeco is a good company, and we are willing to pay a fair price for acquiring the asset."
Carlsberg, for its part, has the highest hopes and expectations for the Vietnamese brewing industry.
Last December, Vietnam Beverage, a unit of Thai Beverage, successfully acquired 53.59% of Saigon Beer Alcohol Beverage (Sabeco) shares for US$4.8 billion. The deal represents the endorsement of the hard work that has gone into establishing the Sabeco and Habeco brands, as well as the potential for further development of the sector, said Carlsberg's representative.
The state's divestment from Sabeco and Habeco, thus, is expected to enable further investment into Vietnam's homegrown brands and position them to claim their place among the region's best and most appreciated beers.
"Carlsberg remains committed to working in good faith with the Government to accelerate its remaining divestment from Habeco and to achieve an outcome that is most beneficial for the Vietnamese people, especially the proud consumers of Hanoi beer," the Carlsberg representative concluded.
In 2017, beer consumption in Vietnam was estimated to be over 4 billion liters, up 260,000 liters (6%) over 2016, according to the Vietnam Beer Alcohol and Beverage Association (VBA).
This number is close to the target of 4.1 billion liters by 2020 set in the master plan for the development of the Vietnamese alcohol, beer, and beverages sector approved by MoIT, meaning each Vietnamese person will consume around 43 liters per year.
Sabeco, Vietnam's largest brewer with 40% of the beer market share, has produced 1.77 billion liters of beer alone, an increase of 6.6% year-on-year, while the second largest domestic brewer, Habeco (18% market share), brewed 657.6 million liters, down 6.5%.
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