Why Suntory PepsiCo Vietnam Beverage?
Expected to further build on PepsiCo’s position in Vietnam; Enables Suntory to enter a priority growth market and Will extend successful global relationship between Suntory and PepsiCo.
PURCHASE, N.Y. and OSAKA, JAPAN, OCT 23 2012, – PepsiCo, Inc. (NYSE: PEP), one of the world’s largest food and beverage companies, and Suntory Holdings Limited (Suntory), a global beverage and wellness company based in Japan, today announced an agreement to form a strategic alliance in Vietnam.
Under the terms of the agreement, Suntory will acquire a 51 percent stake in PepsiCo’s Vietnam beverage business, while PepsiCo will be a 49 percent shareholder. Suntory and PepsiCo will hold key roles in the management team of the new joint venture, which will serve as the bottler for both companies in Vietnam.
The new alliance is expected to build on PepsiCo’s existing position in Vietnam and to create new growth opportunities for PepsiCo and Suntory in the market. PepsiCo is one of the leading players in Vietnam’s liquid refreshment beverage space, and the alliance is designed to combine the capabilities of both companies in ways that are mutually beneficial to their businesses, customers and consumers.
PepsiCo will retain marketing and innovation responsibilities for its portfolio of iconic beverage brands in Vietnam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. Suntory brings to the strategic alliance strong brands and a long history of successfully developing beverages for the Asia market.
PepsiCo and Suntory have an established record of successfully working together in other beverage markets, including the United States, Japan and New Zealand.
Henry Park, CEO of Suntory Beverage & Food Asia Pte. Ltd., a wholly owned subsidiary of Suntory Holdings Limited, said: “Suntory has been actively expanding its business foundation to consolidate its position in growing South-East Asian markets. This alliance is one of our strategic initiatives to pursue further growth in the region. Suntory is committed to the Vietnam business together with PepsiCo, our partner of more than 30 years, which has already established a leading position in Vietnam.”
UmranBeba, President, PepsiCo Asia Pacific said: “Vietnam is a highly attractive growth market where PepsiCo is well positioned in the food and beverage marketplace. We’re focused on expanding our food and beverage business in Vietnam through continued investment across our portfolio, and our beverage alliance with Suntory is an important part of our strategy to position PepsiCo for sustainable long-term growth in the market. Suntory is a world-class company and proven PepsiCo partner, and we believe their expertise and capabilities will drive the continued success of our Vietnam beverage business.”
Since entering the market in 1994, PepsiCo has undertaken an investment program of more than $500 million and now has five beverage manufacturing plants in Vietnam, a high priority market in PepsiCo's aggressive emerging and developing markets growth plans. PepsiCo nearly tripled its business in emerging and developing markets during the period from 2006 to 2011.
Suntory has accelerated its global strategy and expanded its beverage business in Southeast Asia following the establishment of Suntory Beverage & Food Asia Pte. Ltd. in Singapore. Expansion into Vietnam is a key part of Suntory's long-range plans.
PepsiCo will continue to independently operate its foods business in Vietnam. PepsiCo enjoys success in Vietnam’s snacks category with its Poca brand, and intends to continue to invest in agriculture, innovation and distribution to grow its foods business across the country.
This transaction is subject to the completion of legal processes.
In February 1994, the US embargo to Vietnam was lifted marking the phenomenal entrance of PepsiCo into this new market. Just hours after the historical moment, Pepsi-Cola and 7UP products were available to the first few thousand local consumers in Ho Chi Minh City. Officially, PepsiCo teamed up with International Beverages Company (IBC) – a well-established local joint venture to manufacture and distribute Pepsi-Cola and 7UP products in Vietnam. PepsiCo held 30% equity of the joint venture (JV) with the other two partners – SP. Co (Vietnamese) and Macondray (Singapore) sharing the balance.
Since then the JV's equity structure and partnership have been modified several times to keep pace with the increasing demand for growth. Eventually, in April 2003, the company became a 100% foreign owned entity – a new entirely run subsidiary of PepsiCo worldwide. The company's name was also changed to PepsiCo Vietnam.
At the same time, there happened a merge between PepsiCo's Foods and Beverages divisions underpinning a global diversification strategy and this led to an amazing change in the course of business and significantly made an impact on both strategy and operating principles of PepsiCo Vietnam – the company has quickly adopted the new strategy, expanding its business functions and portfolios to manufacture and distribute both Foods and Beverages (F&B) in Vietnam.
The company has six production facilities for both F&B – all equipped with up-to-date technology and world standard quality control system. The diverse product portfolios including Pepsi-Cola, 7UP, Mirinda, Aquafina, Sting, Twister, Lipton and Poca were widely and deeply distributed to Vietnamese consumers from the operation branches located across Vietnam.
PepsiCo has undertaken an investment program of more than US$500 million in Vietnam, and has opened 5 Beverage since 1994.
Over time, PepsiCo Vietnam has not only successfully operated in compliance with its corporate's world-class standard and the local regulations as well but also sustain its market leadership position driven by impressive growth significantly surpassing that of the F&B industry. Apart from that, PepsiCo Vietnam also received widespread recognition for its social contribution and tireless fosterage and support of the welfare of the community via active involvement in related activities and events.
Behind PepsiCo Vietnam's track record performance is a fully capable, dedicated workforce of more than 2,300 employees led by a strong, experienced, and committed leadership team. Together the entire organization has strived towards making PepsiCo Vietnam a better place to work and striking a right balance between work and life.
The strong organizational capability and remarkable effort have been recognized through numerous awards given by PepsiCo such as President's Award, Ring of Honor, Center of Excellence awards for Sales and Operations, and especially the DMK Award – the highest in PepsiCo's award system.
We understand that the success of our business is not just thanks to our products, but our people who are our most important asset. By delivering outstanding business performance, Suntory PepsiCo Vietnam has become a great place to work.
This means providing development opportunities to employees and a well-balanced work life. Alongside being a diverse place to work, Suntory PepsiCo Vietnam also offers generous compensation and benefits packages and excellent working conditions. We work hard to develop the competency of the management teams who in turn, continuously improve the working and business environment. We have established systems to ensure continual career development for our employees and the reward and recognition program is part of our management culture.
Suntory PepsiCo Vietnam empowers all our employees to deliver sustained growth. We promote a good work-life balance (WLB) to help our employees not only fulfill their responsibilities in the company but also spend time with their families. Therefore, they get the support from their family to continuously contribute to the company's business development.
Suntory PepsiCo Vietnam nurtures a work ethic in which business is conducted in line with Vietnamese traditional cultural, moral and social values. Other than our competitive compensation and benefits, this is one of the key factors responsible for attracting talent people.
Besides that, our Values and Code of Conduct play an important role in building a strong corporate culture:
Our commitment is to deliver sustained growth through empowered people acting with responsibility and building trust. We must always strive to:
- Care for our customers, consumers and the world we live in
- Sell only products we can be proud of
- Speak with trust and candor
- Balance short term and long term
- Win with diversity and inclusion
- Respect others and succeed together
Code of Conduct
Our Code of Conduct defines how we do business the right way. Indeed, our Code is at the center of everything we do. Each of us embraces the principles of our Code of Conduct and we apply them to every aspects of our work.
- Show respect in the workplace
- Act with integrity in the marketplace
- Ensure ethics in our business relationships
- Perform work responsibly for our shareholders
Pepsi Brand In The Top 100 Of “Tin & Dung – Believe & Use” Program
"Tin & Dung - Believe & Use" is a voting program in which Vietnam's consumers choose thir favourite products. The program has been held annually by the Vietnam Economic Times and Consumer Consultant Magazine since 2006.
Through surveying consumers'favourite 3,000 products, and conducting questionnaires at supermarkets in Hanoi, Hai Phong, Quang Ninh, Da Nang, HCM, the top 100 products were selected. Our company's brand Pepsi, was the only one of CSD in the beverage list.
The award ceremony was carried out on Saturday 9th Nov, 2013 at Riverside Palace, Ho Chi Minh City with the participants of top 100 brand representatives, and the media in attendance.
SPVB receives Certificate on 15th Anniversary of Bac Ninh Industrial Zones Authority (BIZA)
On the occasion of the 15th anniversary, the Chairman of the People's Committee of Bac Ninh awarded a Certificate of Contribution & Performance to SPVB, Bac Ninh branch for their investment activities and contributions towards developing the local industrial zones during 1998 – 2013.
Along with business investment in Bac Ninh, SPVB has also done a wide range of CSR activities for local community:
- Granted VND 500 million for the Department of Education and Training to buy computers for local students
- Granted VND 100 million for the Poor Fund, Bac Ninh Fatherland Front
- Charity gifts to HIV/AIDS people
- Coordinated with Bac Ninh Youth Union to give VND 30 million for disadvantaged and poor children on Mid-Autumn festival
Since officially in operation, Bac Ninh plant has been collaborating with BIZA to host events for government delegations as well as international deputations to work and visit, promoting and boosting investment processes in the local area.
The Chairman's Circle of Champions Award
Ms. Nguyen Hong Hạnh, Quality Control Manager in Can Tho and Mr. Nguyen Van Truc, Dien Ban Plant Manager, have been named as two of the 2013 Chairman's Circle of Champions (CCoC) Award Winners in the Asia-Pacific region. This is the annual recognition of the very best-of-the-best from PepsiCo's operations personnel. The award ceremony will take place in New York, from October 7 to 11, 2013.
Certificate from General Department of Taxation Vietnam
Mr. Bui Van Nam, Director General Department of Taxation Vietnam has awarded Certificate of Merits to SPVB's branch in Can Tho. "The government praised the SPVB's branch in Can Tho for the excellent performance in tax policies and laws of Vietnam in 2012," as shown on the certificate.
Quang Nam Branch Received Tax Award
The Ministry of Finance has given a Tax Award to SPVB's branch in Quang Nam for their fine execution of tax policies and laws throughout 2012.
Vietnam High Quality Goods Certificate 2013
Suntory PepsiCo Vietnam was honored to achieve the Vietnam High Quality Goods Certificate 2013. It is an award for the non-alcoholic beverage industry which is voted by consumers.
The association of Vietnam High Quality Goods and Sai Gon Tiep Thi Newspaper hosted this program.
Merit of Ho Chi Minh City Taxation
May 31, 2013, in Ho Chi Minh City Hall, Mr. Kannan H., received the Ho Chi Minh City Taxation award to recognize SPBV's fulfillment of tax obligations to the state.
At this conference, SPVB was also recognized for its contribution to Vietnamese development.
Recognition of HCMC PC For SPVB Contributions to Disabled People and Orphans
Suntory PepsiCo Vietnam was honored to be recognised by HCMC People's Committee from 2010 – 2012 via the activities of the HCMC Association for disabled person and orphans.
During this time, Suntory PepsiCo has supported charity activities such as supporting disabled persons and orphans during Tet via Spring Tree Program, scholarships for disabled person and orphans etc.
This is the second consecutive time that we have been granted this recognition.
AMEA Food Safety Award for 2012
This is the fourth year of the Food Safety Awards. A total of 121 facilities are eligible to receive the Food Safety Award (99 beverages and 22 foods facilities). All five VNMU Beverage Plants including Dien Ban, Dong Nai, Bac Ninh, Hoc Mon and Can Tho have received the 2012 Silver FSA.
2012 Center of Excellence (COE) Awards
Now in its 12th year, the COE Award recognizes PepsiCo Operating Units, including company-owned, franchised and contracted operations that have embraced, internalized and significantly improved business results through the implementation and sustainability of one or more of our best practice tools (BPTs). Can Tho and Dien Ban Plants won ReCon Water Stage 1. Dien Ban Plant won ReCon Stage 1 Energy/Climate.
Beverage Quality Excellence Award 2012
The criteria for the QEA Awards are based on a 3D Quality Scorecard which assesses a plant's compliance to our standards within the three key dimensions of food safety, plant quality, and trade quality. Can Tho Plant won the BRONZE award.
Recognition of Dong Nai People's Committee
On March 13th 2013, Mr. Dinh Quoc Thai, chairman of the People's Committee of Dong Nai province has signed a certificate of merit to acknowledge PepsiCo Vietnam Company for its "active and continuous contributions to the entrepreneur's fund in 2012".
This is a regular activity of PepsiCo Vietnam, which aims to embrace its corporate social responsibility – to always care for the development of the business community, residents, the environment and the sustainable development of the local area in which we operate.
The Health Safety - Fire Response Award 2012 to Binh Duong Plant
On March, 2013, Binh Duong Plant was granted "The Health Safety – Fire Response Award 2012" by Binh Duong Labor and Social Welfare Department. This is the third consecutive time that Binh Duong Plant has received this award.
On this occasion, Binh Duong television and Binh Duong firefighters paid a visit to BD plant for an interview and filmed the packing hall, RM warehouse and fire pump system. The documentary was broadcast on several channels to raise public awareness for our Binh Duong plant - as one of the outstanding models in health and safety and fire response.
Inside review about Suntory PepsiCo Vietnam Beverage
HR Business Partner - Corporate - 1474344068Pros: _ Friendly and diversified environment _ People-oriented culture _ Good benefits _ Good career roadmap _ Many internal career opportunities
HR Executive - Talent Acquisition - 1473927697Pros: - Work-life balanced culture - Competitive rewards package - Company reputation: leading company in beverage industry