Beer dealers are facing great pressure because of a sharp drop in demand in major cities

17 Aug 2020

The volatile economic market has created a great pressure on retailers. Along with that, the outbreak of the epidemic reappeared also greatly affected many different industries such as tourism, food services, restaurants and hotels, especially not to mention the beer industry in Vietnam.

According to the financial magazine of the Information Agency of the Ministry of Finance, the Covid-19 translation caused the income of many Vietnamese households to decrease by 70%. The results show that the Covid-19 epidemic has a different effect on vulnerable households. Perhaps brewers saw the difficult economic situation and unanimity of the whole country during this pandemic, Heneiken launched Vietnamese beer and Sabeco launched Lac Viet beer, both new beers. out there are low price segments, affordable for many people. [Hypotheses] Currently, Vietnamese beer and Lac Viet beer are available in some pubs in District 2 of Saigon, according to the sales staff here, there are many curious customers who want to try this beer because The price is affordable and has a strong message hitting the consumer psychology that is “honoring Vietnamese values”. However, there are also a few cases where people still do not know these beers, as Mr. A is working as an employee for a crowded sidewalk restaurant on Pham Van Dong street, Binh Thanh said that customers Still quite unfamiliar with these two brewers, so the demand is not high.

If the Corona epidemic spreads more widely, it can make consumers stay away from crowded places such as bars, thereby negatively affecting alcohol consumption, in addition, Vietnam’s beer industry’s specialty is the consumption channel. -trade (local consumption such as restaurants, hotels, beer bars) accounts for 70% of total consumption. Therefore, if the number of customers at restaurants decreases, this will be a huge pressure for beer agents. [Hypotheses] According to Mr. A, the owner of an agent selling XYZ beers in Hanoi, said that in the past few months, he has encountered many difficulties in selling the right target for XYZ breweries. He hopes brewers can reduce quotas or create new pricing and promotion strategies to boost purchasing power in the near future.

Currently, beer agents are setting great expectations for brewers when they are facing great pressure on sales targets and sales or from beer manufacturers. [Hypotheses] Mr. Ah, the owner of a beer agent in Saigon, said he hopes the beer companies will have more promotion policies and reduce their sales expenses because so many people are restricting alcohol consumption during the period. recently. While in Da Nang was “completely frozen” and some other cities were also blocked, people became more alert to the epidemic and less gathered to eat outside, which caused great trouble. The reason for beer must compete with each other more fiercely. [Hypotheses] According to our survey in the beer pubs in Saigon, most people drink Saigon beer at sidewalk restaurants because of the good price and the taste is suitable for dishes with beer like snails, hot pot, and so on. For more luxurious restaurants, they often use Tiger beer because of its loyalty to Tiger Brewery from people with high and stable incomes. As for the sidewalk restaurants in Hanoi, consumers often drink Habeco beer because the type of beer Habeco – the taste of Hanoi people. In more luxurious restaurants, Tiger breweries are more popular.

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