Vietnamese soft drink maker Chuong Duong projects 5th straight year of losses

According to its draft plan for the 2025 annual general meeting, the company aims to improve business performance by boosting sales volume by 38 percent and expanding its distribution network in central and southern Vietnam.

It also plans to launch new products to help increase revenue by 42 percent, or VND77 billion ($3 million).

However, the firm still forecasts an after-tax loss of more than VND80 billion ($3.1 million) in 2025, citing high land use fees and interest expenses from prior loans.

Initially, Chuong Duong’s board proposed borrowing VND65 billion ($2.5 million) from its parent company Sabeco this year and another VND45 billion ($1.7 million) in 2026 to support operations.

But this borrowing plan has since been withdrawn from the annual general meeting agenda, with the company citing a need for further review.

Founded in 1952 as Usine Belgique under France’s B.G.I Group, Chuong Duong was once a household name in Vietnam for its signature soft drinks.

Its products are mainly distributed from central Vietnam to the country’s Mekong Delta region.

The company has been in the red since 2021, largely due to the costly relocation of its factory to Nhon Trach in southern Dong Nai Province, disruptions from leadership changes, and low returns from its warehouse leasing project in southern Binh Duong Province’s My Phuoc 3 Industrial Park.

New land use regulations introduced in August 2024 have also significantly raised operating costs.

The company’s land rental expenses over the past three years totaled more than VND105 billion ($4 million), with VND48.5 billion ($1.9 million) expected in 2025 alone.

Company leaders pointed to key shifts in Vietnam’s $8.7-billion beverage market in 2024, including growing consumer preference for natural, low- or no-sugar drinks such as pure fruit juices, plant-based milk, herbal teas, and functional drinks with collagen or probiotics.

Environmental awareness is also shaping purchasing behavior, with consumers favoring sustainable packaging and eco-friendly production.

Meanwhile, demand for personalized flavors and packaging has become a major competitive factor.

These trends present both opportunities and challenges for local beverage companies, especially those slow to adapt to evolving market preferences.