FostersinVietnam

1、fostersinvietnamfostersinvietnam 编辑整理：尊敬的读者朋友们：这里是精品文档编辑中心，本文档内容是由我和我的同事精心编辑整理后发布的，发布之前我们对文中内容进行仔细校对，但是难免会有疏漏的地方，但是任然希望（fostersinvietnam）的内容能够给您的工作和学习带来便利。同时也真诚的希望收到您的建议和反馈，这将是我们进步的源泉，前进的动力。本文可编辑可修改，如果觉得对您有帮助请收藏以便随时查阅，最后祝您生活愉快 业绩进步，以下为fostersinvietnam的全部内容。chapter 8fosters in vietnamwretten by tusha

2、r sharmabackgroundfosters group limited (fgl) is a melbourne-based global multibeverage group producing a strong portfolio of beer， wine， spirits, cider and nonalcoholic beverages. fosters is particularly well known for different brands of beers famous both domestically and globally。in 2010 fgl func

3、tioned through its three main regional operating arms: australia， asia and the pacific； europe， middle east and africa； and the americas. a corporate restructuring is underway， although all the operations continue to be centrally managed from the headquarters in melbourne。it wasnt until the early 19

4、90s that fosters decided to enter the markets of southeast asia， but untapped markets in countries such as china， vietnam， fiji and thailand represented great potential。 vietnam, in particular， offered great opportunities for fgl considering its large percentage of young people and the fact that the

5、 tropical climate was conducive for beer production and consumption。 these became the paramount reasons behind the entry of fgl and other international breweries into vietnam in 1997。fgl ventured into vietnam through its wholly owned subsidiary fosters vietnam limited。 the company was founded in 199

6、7 and based in ho chi minh city。 fosters vietnam limited operated as a subsidiary of fosters brewing international, catering to the asian and middle eastern markets. fosters operated two breweries in vietnam: fosters danang brewery in central vietnam, and fosters tien giang brewery outside of ho chi

7、 minh city. both breweries produced fosters lager， asias most recognized beer brand, and the fastgrowing local beer brand larue， which became a huge hit in vietnam.the purchase of danang （song han), a soe （state-owned enterprise) for aud $8 million (usd $4.7 million) in 2002 was done specifically to

8、 allow fosters to double its brewing capacity to one million hectoliters and meet increasing demand.from its initial investment of 1997 fgl was able to double its market share in vietnam to 12% and as a result achieved a maiden profit in 2002, two years ahead of schedule. this was mainly due to the

9、growth of its domestic brands and export business。 from 2002 to 2006， however, fgl struggled to meet strict and regularly changing government regulations. this situation ultimately led to the exit of fosters form vietnam. the august 2006, it sold its business to asia pacific breweries （apb) for usd

10、$105 million. the company also had to deal with a range of cultural differences that impacted on its ability to promote produces effectively and to deal with both local and foreign competition。 these challenges also impacted on staff hiring, reward and retention policy, and occupational health and s

11、afety requirements。fosters group limitedfgl is well known for product lines such as fosters lager， crown lager, carlton cold， carlton draught， carlton sterling， victoria bitter and cascade premium. global management for the asia pacific operations of fgl international is run from the melbourne headq

12、uarters. fgl s primary customer base consists of local and international liquor wholesalers， retailers, hotels, bars and restaurants. these account for 60% of revenue。 fgl also serves the corporate and general public directly， generating 25% of its total revenue.as part of its expansion in asia， fgl

13、 entered vietnam in 1997 to further grow its business in the second fastest growing economy in asia.the vietnamese beer marketbeer output in vietnam increased form approximately 1.29 billion liters in 2003 to 2 billion liters in 2008。 to meet the increasing demand， output was expected to reach 2。7 b

14、illion liters by 2010.in 2009, beer production in vietnam was estimated at 18。5 million hectoliters a year. despite inflation， the beer industry was experiencing an annual growth rate of 14%. it was also estimated that vietnamese people spent over vnd $20 trillion on beer every year。 with 33 million

15、 people between the ages of 20 and 40, the beer industry was expected to continue its raped growth.in 2008， the two biggest names in the vietnamese beer industry were habeco and sabeco， accounting for a combined 50 market share. according to the ministry of industry and trade， there were 350 breweri

16、es operating in vietnam in 2008, but premium beer sales were limited to a few major international brands。 many international players （including frances kronenbourg， and san miguel of the philippines) have now joined premium beer leaders tiger and heineken in the vietnamese market。entering the vietna

17、mese market, however, was difficult. multinational corporations were required to obtain government approval and a business license （ha thanh nguyen & meyer 2004)。 although the government had started opening up some sectors， the economy was still generally closed。 this was especially ture for the bee

18、r industry where state owned enterprises (soes） like saigon brewery ltd (sabeco) and vietnam brewery ltd were still the dominant players in 2008 (international 2008）.fosters in vietnamthe “doi moi” economic reforms of the early 1990s made it easier for foreign companies to enter and operate in vietn

19、am。 fosters entered vietnam in 1997 by buying two breweries from french company brasserie et glacieres internationales for $57 million. the breweries had a total capacity of 90 million liters. fosters was very optimistic about succeeding in vietnam and formulated a five- year plan to achieve operati

20、onal profitability。 in fact, due to the increased disposable income of a burgeoning middle class， fosters achieved its goal two years ahead of schedule.early in 2002, in order in meet the growing demand， fosters acquired danang （song han) state brewery for aud $8 million (usd 4。7 million）. the acqui

21、sition of the brewerys assets and the song han brand license allowed fosters to double its brewing capacity. it increased danang brewerys capacity to 450,000 hectoliters， or the equivalent of six million cases。 this enabled fgl to increase its market share to 12%.the reason for these massive investm

22、ents in vietnam was fgl s plan to use it as a production base catering not only to the growing vietnamese domestic market, but also for export production to other countries in the asia pacific region. as a result， by the end of 2002， fosters operated two breweries in vietnam： fosters danang brewery

23、in central vietnam and fgl s tien gang brewery outside of ho chi minh city。 the two breweries produced fosters lager, asias most recognized beer brand, and the fast growing local beer brand larue。 it also launched larue export produced by its bgi tien gang brewery. in total, due to fgl s acquisition

24、s, the companys brewing capacity reached one million hectoliters at its peak， providing beneficial economies of scale。why did fgl leave vietnam？despite initial success, the overall result was disappointing for fgl in vietnam. the losses were mainly due to internal managerial problems that the compan

25、y experienced whilst operating abroad. although fgl knew its business and its consumers well, it didnt know how to translate the knowledge into success when operating in a new environment with different social and governmental conditions。the entry of fgl into the wine industry in early 2000 didnt he

26、lp either, as it meant that huge resources were diverted from the core business。 the 2。6 billion acquisition of us wine group beringer in 2000 and the expensive integration of southcorp （purchased for $3.2 billion in 2005) meant the company had to review its entire strategy (speedy 2008)。 the negati

27、ve impact of these decisions greatly curtailed the companys ability to expand into other asian markets.as a result, from 2002 fgl s market share began to shrink. in 2006, due to recurring losses， it sold its business in vietnam to asia pacific breweries (apb） for usd $105 million (group 2002). as ch

28、airman david crawford later admitted， fgl had been crippled by paying too much for its acquisitions， especially southcorp, the company behind the penfolds and rosemount brands (speedy 2008)。this resulted in fgl selling its breweries in da nang and tien gang and its associated local brands to apb， an

29、d entering into a licensing agreement for the fosters brand at a market royalty rate for a finite period. the fosters group retained ownership of the brand, and provided brand management and technical support to apb。 in addition to producing and distributing fosters under license in vietnam， apb the

30、n produced fosters for export across asia。 at that time apb operated 27 breweries in 10 countries in asia pacific and was a leading brewer in the region。according to the chief executive officer of fgl at the time, trevor o hoy， “the fosters brand has significant potential to expand in vietnam， given

31、 its relatively low current market share. were delighted to be partnering with apb, whose brewing and brand management expertise, and powerful distribution network, will drive the future growth of fosters in vietnam。”mr koh poh tiong， chief executive officer, asia pacific breweries ltd said, “we are

32、 pleased to include fosters in our brand portfolio for vietnam. in view of the growing base of increasingly affluent vietnamese consumers who are trading up to more premium beer choices， the fosters brand is a complementary addition to our premium beer segment that includes heineken and tiger。”wheth

33、er moving to a licensing agreement with apb was the best strategy is unclear, but perhaps fosters had no choice。 according to lai chun loon， a consultant for singapores temasek holdings （private） limited, vietnam in 2004 was the worlds fastest growing beer market. and, asia pacific breweries two main brands tiger and heineken had 85% of the premium beer market， despite the fact that tiger beer costs three to four times what some local brews cost。questions1. how could fgl s problems have b