Phong Quach, head of consulting at Ipsos Strategy3 Vietnam, said that players who lead in dealmaking in the food and beverage (F&B) category often develop their own distribution and retail locations that are suitable for the consumers profiles.

Food and beverage imports are becoming more popular in Vietnam, Photo: Shutterstock

“This requires hard-working efforts and thorough landscape understanding, as traditional retail systems often focus on the volume of visitors rather than profiles of visitors,” Quach said.

“In some cases, retail players need to build their footprints from scratch since most of the imported products are alien to the local Vietnamese, such as Norwegian salmon, cod, clip fish, cold-water prawns, French cheese, wine, and Japanese Wagyu,” he added.

Meanwhile, F&B imports are progressively becoming popular in Vietnam. The General Statistics Office reported that in the third quarter of 2024, importation of meat and products from meat reached 221,000 tonnes at $473 million, growing 2.5 per cent by volume and 14.7 per cent by value compared to the previous quarter.

“Exporters from other countries are eyeing local players in Vietnam who successfully develop the distribution and retail of these segments. Besides instant access to the retail distribution system, exporters can also optimise the investment as merger and acquisition (M&A) of distributors; retailers are fairly cost-competitive compared to manufacturing capability. This would be certainly a sweet spot for exporters to consider more in the future,” Quach noted.

There have been several noteworthy F&B deals made in recent months. Saigon Beer, Alcohol, and Beverage Corporation intends to scoop up an additional 43.2 per cent stake in local brewer Saigon-Binh Tay Beer Company, with the deal expected to close by the end of the year. Following the deal, the former will become the parent company of the latter.

Nutifood also completed its acquisition of a 51 per cent in ice cream producer KIDO Foods in September. KIDO Foods holds the largest market share in Vietnam’s ice cream market, driven by its flagship brands, Merino and Celano. This acquisition enables Nutifood to diversify from health-focused products and expand into the frozen foods market.

Elsewhere, Marubeni Corporation, through its wholly owned Singapore-based subsidiary Marubeni Growth Capital Asia, acquired additional shares in AIG Asia Ingredients Corporation in August. The deal follows Marubeni’s initial investment in AIG, announced in October 2023.

CDH Investments of China also purchased 5 per cent in Bach Hoa Xanh from Mobile World Investment Corporation. The Bach Hoa Xanh minimart chain is the leading modern retailer by revenue, specialising in selling fresh foods and other goods satisfying the daily basic needs of Vietnamese consumers.

Binh Le, CEO and head of M&A at ASART Deal Advisory, said that the F&B sector currently has a dynamic M&A landscape, characterised by increasing activities and value that have rebounded strongly in 2024.

“With a promising outlook, M&A activities in this sector for 2025 and beyond are expected to remain active, strong, and supported by both economic and sector-specific drivers. This growth, combined with Vietnam’s favourable demographics and urbanisation trends, creates an ideal landscape for both strategic and financial investors seeking access to a dynamic market and robust long-term prospects,” Le said.