On 26th October 2017, Vietnam Report Joint Stock Company officially announced top 10 prestigious food – beverage companies in 2017.
Top 10 prestigious food – beverage companies list is the result of independent research of Vietnam Report announced in 2017. However, from 2012, Vietnam Report already used Media Coding (coding from press data) to score the bank’s the credibility in the media. Since then, many Top 10 lists in key sectors with potential growth of Vietnam have also been announced periodically such as: Real Estate, Construction, Banking, Insurance, Pharmacy, Listed Companies, etc.
Top 10 prestigious food – beverage companies in 2017 has been built on the principles of science and objectivity. Companies have been evaluated and ranked based on three main criteria: (1) Financial capacity shown in audited financial statement for the latest year (Total assets, total revenue, profit after tax, capital efficiency, etc.) (30% in total score); (2) Media credibility is evaluated according to Media Coding method – coding the articles of the company in influential media channels (30% in total score); (3) Online survey on the level of customer perception and satisfaction with products/ services of the company; Surveys of the experts evaluate position of company in the sector; and enterprise surveys conducted in September 2017 in terms of market size, labor, capital, revenue growth, profit growth, business plan in 2017, etc. (40% of total score).
List of Top 10 prestigious food – beverage companies in 2017
Source: Vietnam Report, Top 10 prestigious food companies in 2017, October 2017.
List of Top 10 prestigious food – beverage companies in 2017
Source: Vietnam Report, Top 10 prestigious beverage companies in 2017, October 2017
According to Vietnam Report’s evaluation, now, the leading food company in Vietnam is Vinamilk, Masan Consumer and Acecook Vietnam. It is noteworthy; Vinamilk was chosen by the majority of consumers and selected as the number one in brand awareness as well as company’s information is covered and has the greatest media effect now by the survey team.
Converted score of rating Top 10 prestigious food companies in 2017. Source: Vietnam Report, Top 10 prestigious food – beverage companies in 2017, October 2017
In beverage group, Sabeco, Heineken, Pepsi are three leading companies of the credibility in Vietnam market. Unlike food group, beverage companies have been a caution about appearing in the media last year. However, according to many experts, the entry of foreign beverage brands through M&A will make the beverage market busier in the near future.
Converted score of rating Top 10 prestigious beverage companies in 2017. Source: Vietnam Report, Top 10 prestigious food – beverage companies in 2017, October 2017.
Some brands selected by the majority of consumers in 2017
According to online survey conducted by Vietnam Report in September 2017, Vissan, Hao Hao, Chinsu, Vinamilk, Kinh Do, Sai Gon beer, etc. are the brands of foods – beverages selected by the majority of consumers according to each food group (fresh food, frozen food; dry food; spices; milk and dairy products; confectionery) and beverages.
For fresh food, frozen food; Vissan is the name selected by most consumer with rate of 17%. In spice sector (sugar, fish sauce, etc.), Chinsu and Nam Ngu are two brands selected by most consumers with rate of 18% and 12% – these are two typical brands of Masan. In dry foods (noodles, package noodles, etc.), Hao Hao is still a trademark in the mind of Vietnamese consumers with rate of 20%, double the selective rate of Omachi. For milk and dairy products, Vinamilk is the preferred choice over competitors in the same sector, followed by TH True Milk with rate of 18%. And in beverage sector, Sai Gon beer and Lavie are two names mentioned by most consumers when responding to the survey.
Some brands selected by most consumers according to product group. Source: Vietnam Report, Online consumer survey conducted in September 2017.
Growth forecast for food – beverage sector
It is evaluated that Food – beverage market will be very potential in 2017 – 2018 period. According to some experts, after a few years of slowing down, now food – beverage sector are slowly regaining momentum and growth. Business Monitor International (BMI) forecasts, growth rate of food and beverage sector will maintain a compound annual growth of 10.9% for 2017 – 2019 period due to improvements in incomes and the trend of consuming higher value products. According to the latest statistics of the General Statistics Office, food production, food process in the first nine months of 2017 increases 6.6%, beverage production increases 5% over the same period last year.
With a population of over 90 million people, and the number of tourists is increasing rapidly in recent years, food – beverage industry in Vietnam is evaluated as fertile land for internal and external investors, including foreign investor. In coming time, the disinvestment of the State in some leading food – beverage companies such as Vinamilk, Sabeco, Habeco, etc. will open opportunities for foreign companies to enter in this potential market. Most recently, the entry and occupation of Thais in companies with the direction of producing foods – beverages such as strategic cooperation with Masan, share investment from SCIC shares in Vinamilk, etc. also forecast a fierce competition in the near future.
Leading trends of food – beverage industry in 2017 – 2018:
The growth rate of food and beverage industry will remain compound annual growth rate of 10.9% for 2017 – 2019 period due to improvement in incomes and the trend of consuming high value products.
Developing many selling services and selling method: Some food – beverage companies such as Vinamilk, have launched online selling websites to satisfy online shopping of customers. At the same time, consumers can periodically order products in the agents of food and beverage companies and delivered periodically, saving time and money, satisfying habits and nutritious demands of individuals/ families in each local area. The change of selling service and selling method will help the companies to have better access to each target group, thereby increasing sales and satisfactions of customers with products and services.
Fast food – beverage group has more growth potential but also more competition: Along with the recovery of economic growth, the demand of fast food – beverage products also increases rapidly, especially in ready t eat food and ready to drink beverage because of its usability. In the future, when State Operating Enterprises are equitized, they need to focus on competition, increase labor productivity, etc. the demand for using fast food, beverage products will be much larger, and of course, they need to ensure adequate nutrition, hygiene and food safety, etc. According to Kantar Worldpanel in packaged food industry (July 2016), the number of new products launched in the packaged food market is 2-3 times higher than that of milk and dairy products, give more chances for consumers to select. In addition, Kantar Worldpanel also forecasts that the monthly spending on packaged products will increase in 2016 -2020 period, in which, in urban area will increase 13%, rural area will increase 18%. This will make the market more competitive than ever.
The trend of investment on fresh foods: When incomes increase, the consumers are more willing to pay for healthy and environmentally and friendly food – beverages. Vietnam is one of leading country in agricultural products, but processed foods, especially fresh foods which are processed safe and clean have not been efficiently exploited. The main reason is the difference of technology, equipment and human resources. This a weakness of local companies when competing with foreign companies. The cooperation with foreign companies through M&A method, strategic cooperation, etc. is expected to change production methods of local companies today.
As can be seen, the growth potential of food – beverage sector is very large, and the competition for market share is also very fierce. Therefore, maintaining and developing the brand as well as prestige requires the enterprises to take the initiative, accurate predict and strategy adapt to the changes in the market, thereby improving business operation and improving its competitiveness in the sector.
Research methodology for media analysis to evaluate the credibility of the companies is based on Agenda Setting theory on the influence, impact of mass media to the community and the society launched officially by Prof. Maxwell McCombs and Donald L. Shaw in 1968, and applied by Vietnam Report and its partners. Accordingly, Vietnam Report used Branch Coding Method to analysis the credibility of food and beverage companies in Vietnam.
Vietnam Report coding the articles of food – beverage posted in 5 papers: Vietnam Economic Times, Vnexpress, Sai Gon economic Times, Vietnam Plus, Dantri from September 2016 to September 2017. There are total 831 articles, equal to 1,518 coding unit rated at story level for 24 specific business operations of the company from products, business result, market, etc. to operations and credibility of the company leaders. Coding information is based on two basic principles: Name of company appears in title of the articles, or company information is posted in at least five lines in the article, it is known as cognitive threshold – when information is evaluated as having analytical value. Information is evaluated in: 0: Neutral; 1: Positive; 2: Very positive; 3: Not clear; 4: Very negative; 5: Negative. However, finally the research team only selected 3 levels, including: Neutral (including 0 and 3), positive (including 1 and 2), and negative (including 4 and 5).
Vietnam Report
* Source: Vietnamnet
