Tet beer market is quiet despite continuous price drops

Ms. Hoang Anh, an employee of an event organization company in Ho Chi Minh City, said that every year, her family usually buys dozens of cases of beer to give as gifts and use during Tet. But this year, her family decided to completely cut this expense.

Similarly, Ms. Hanh Nguyen in Binh Duong said that last year she had reserved two kegs of beer to treat guests, but now she did not buy any kegs.

At beer stores in Ho Chi Minh City, the buying and selling atmosphere is less exciting. Ms. Thanh, the owner of a store on Phan Dang Luu Street (Binh Thanh), said that consumption has decreased by 60% compared to the same period in previous years.

"Previously, consumers bought beer for personal use and as gifts, but now they have cut back significantly," Ms. Thanh commented. The sluggish situation has forced many grocery stores to only import in moderation to avoid inventory and have to reduce prices sharply after Tet.

Not only small stores, many large agents are also facing difficulties. An agent on Quang Trung Street (Go Vap) shared that every year they usually import thousands of cases of beer to prepare for the peak season, but now they only import a small amount. Currently, both beer and soft drinks show no signs of increasing in price, and even slightly decrease.

"We dare not increase the selling price, or even adjust it down if customers buy in large quantities. This has never happened in previous years," added Mr. Hung, the agency owner.

In supermarket chains, beer purchasing power has shown signs of a slight increase over the previous month, but is still down 10-30% over the same period. To stimulate demand, many supermarkets have launched large promotional programs.

At Lottemart Go Vap, Saigon Lager beer is reduced to 255,000 VND per crate, while Heineken Silver is only 444,000 VND per crate of 24 cans. Winmart on No Trang Long Street (Binh Thanh) also drastically reduced the price of Ruby beer from 250,000 VND to 199,000 VND per crate. These promotions do not only take place in supermarkets but are also extended to the display areas in front to attract buyers.

Industry experts say this is a rare year where beer prices have fallen instead of rising like every year. The main reason is not only the difficult economic situation, but also strict traffic fines, making consumers more cautious about drinking alcohol. This change forces beer companies to be more flexible in their business strategies to cope with the challenge.

To stimulate demand, major beer companies such as Heineken and Sabeco have launched many incentive programs at supermarket chains. Heineken not only focuses on reducing prices but also promotes non-alcoholic beer, meeting the needs of customers who are more conscious of traffic safety.

In addition to reducing the price of Saigon Lager, Sabeco also cooperates with major supermarkets to display products in prominent locations, combined with attractive gift packages. Tiger and 333 Beer are also not left out when implementing programs to give away glasses or vouchers, to increase value for consumers.

Although the beer market is under great pressure this year, beer companies hope that these stimulus efforts will help improve consumption in the days leading up to Tet.