Foster's Brewing International, a wholly owned subsidiary of Foster's Group Limited, today confirmed its purchase of the assets of the Danang (Song Han) State Brewery to double the capacity of its existing Danang brewery and meet growing demand in the region.
Rick Scully, Managing Director of Foster's Brewing International, said the acquisition of the brewery assets and Song Han brand license for A$8 million (US$ 4.7 million) will allow Foster's to increase its Danang Brewery capacity to 450,000 hectolitres, or six million cases.
"The asset purchase underlines Foster's confidence in the Vietnam market and puts us in an ideal position to grow our business in the second fastest growing economy in Asia.
"Our aim is to be a major player in the Vietnam beer market, as well as to use our Vietnam operations as a production source for regional exports," Mr Scully said.
Last financial year, improvements to packaging and targeted advertising drove 12% volume growth for the Foster's brand in Vietnam, as well as an increasing domestic brand and export business. Foster's business in Vietnam has doubled since the initial investment in 1997, with its market share now approaching 12% nationally.
"The asset purchase will provide equipment required to increase current Danang volumes, as well as deliver immediate cost savings," said Mr Scully.
Foster's Vietnam is a wholly owned subsidiary of Foster's Brewing International, part of Australian-based global premium branded beverage company, Foster's Group. Foster's currently operates two breweries in Vietnam: Foster's Danang Brewery in Central Vietnam and Foster's Tien Giang Brewery outside of Ho Chi Minh City. The two breweries produce Foster's Lager, Asia's most recognised beer brand , and fast-growing local beer brands Larue, recently launched Larue Export and BGI. Foster's Vietnam achieved a maiden profit last financial year - two years ahead of schedule. Following the transfer of assets from the Song Han Brewery, the total capacity for Foster's beer brands in Vietnam is now 1 million hectolitres.
Further information:
Jo Ford
Foster's Brewing International
Tel: (+61) 3 9633 2511
Mob: (+61) 0417 155 369
