Vietnam emerges as new battleground for PepsiCo and Coca-Cola

Vietnam is being eyed as one of the next big emerging markets for global brands seeking expansion opportunities, as the world’s largest beverage giants Coca-Cola and PepsiCo both announced major strategic investments in the country over the last two weeks.

Coca-Cola, for instance, released a statement saying the company plans to invest $300 million in Vietnam over the next three years. The move steps up its total investment in that country to $500 million from 2010 to 2015.

During a recent visit to Hanoi, Coca-Cola chairman Muhtar Kent pointed to Vietnam’s healthy economical growth in recent years and called the company’s investment a sign of its belief in the "long-term potential of this key market.”

The most popular Coca-Cola brands in Vietnam include Coca-Cola, Coke Light, Fanta and Sprite, Minute Maid Teppy, Minute Maid Nutriboost, Samurai, Real Leaf and Dasani.

Coca-Cola's statement of intention was echoed by PepsiCo, which last week also announced that the food and beverage brand had struck a strategic partnership with a beverage and wellness company based in Japan, Suntory Holdings Ltd., that will create new growth opportunities in the market.

“Vietnam is a highly attractive growth market where PepsiCo is well positioned in the food and beverage marketplace,” reads a statement that also identifies the country as a “high priority market.”

Under the new alliance, Suntory acquires a 51-percent stake in the company’s Vietnam beverage business, while PepsiCo is a 49-percent stakeholder.

The company has experienced rapid growth in Vietnam over the last few years, claiming to have nearly tripled its annual revenue between 2006 to 2011 from $8 billion to $22 billion.

PepsiCo also owns a popular local snack food brand, Poca, the Vietnamese version of its Lay’s potato chips.

Consumers in Vietnam are most familiar with PepsiCo brands like Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Beyonce's unretouched L'Oreal photos only latest in her long history of Photoshop controvers …

    Beyonce's unretouched L'Oreal photos only latest in her long history of Photoshop controvers …

    Celebrity News - Fri, Feb 20, 2015 1:47 AM PHT
    Beyonce's unretouched L'Oreal photos only latest in her long history of Photoshop controvers …

    Beyonce’s #Flawless image is embroiled in controversy once again. On Wednesday, a web site called The Beyonce World leaked 224 allegedly raw photos of the musician. The images showed Bey in full makeup for the 2013 L’Oreal ad campaign — but with the kinds of “imperfections” we all have — beauty marks, bumps, creases. In the wake of Cindy Crawford’s unretouched photos, the images have been praised by critics of a beauty industry that sets impossibly high standards, standards that Queen Bey …

  • Taylor Swift reveals ‘Style’ video

    Taylor Swift reveals ‘Style’ video

    omg - Sat, Feb 14, 2015 12:14 AM PHT
    Taylor Swift reveals ‘Style’ video

    The 25-year-old released the video for her third cut from platinum selling album 1989. …

  • My mother-in-law’s personal encounter with the pope

    My mother-in-law’s personal encounter with the pope

    Write Away - Wed, Jan 28, 2015 2:29 PM PHT
    My mother-in-law’s personal encounter with the pope

    For my mother-in-law Mrs. Elsa Yrastorza Yuzon, flying and soaring in the skies is part of her normal routine. But it reached new heights when Pope Francis boarded Shepherd One. …