Referring to carbonated drinks, people immediately think of Coca-Cola, one of the leading beverage brands in the world. In Vietnam, Coca-Cola is also the first choice for many camping and barbecue parties, with its popularity nationwide. Therefore, the distribution of this brand’s products is a great opportunity to reach customers in our country as well as get a stable source of revenue. Swire, a multi-industry group with headquarters in Hong Kong and London, quickly seized this opportunity and acquired the distribution rights of Coca-Cola in Vietnam from its subsidiary in Southeast Asia.

Swire is a multi-industry group with over 200 years of history (established in 1816), with the majority of its core business activities located in Asia Pacific, with the beginning as an import-export business. 

Initially, the company operated in Australia, exporting a variety of goods from cement, and fence wire to olive oil. In 1861, the company started trading with China and only 7 years later, they opened a branch in Hong Kong after choosing headquarters in London.

In Hong Kong, Swire established the Taikoo shipyard and shipyard, the sugar factory of the same name in Quarry Bay, which brought them significant revenue from two rapidly rising businesses at that time. Nowaday, sugar production remains an important link in the company’s beverage industry. Meanwhile, repairing and building ships is currently one of the main business activities of the group. However, when World War II broke out, Swire’s business had to be put on hold for a long time.

A large part of Swire Group’s operations is owned by Swire Pacific.

After two world wars, Swire faced many difficulties in maintaining a business, especially in Hong Kong. After resuming the operation of the shipyard and sugar refinery, Swire quickly entered the aviation sector.

In 1948, Swire bought 45% of shares in local airline Cathay Pacific and later made them part of the group and the power of the airline industry to this day. In addition, they also own a company specializing in aircraft maintenance, repair, and service, Haeco, which is still one of the leading companies in this field to this day.

In addition, Swire provides trucking and cold storage services in Australia, demonstrating the company’s drive to expand its business lines. Besides the business days mentioned above, to this day, the company is also involved in oil and gas, retail, real estate, automobile distribution… In 2012, the company’s shares were officially offered to the public through the Hong Kong Stock Exchange. By the end of the fiscal year 2021, Swire achieved revenue of HKD 92 billion (equivalent to USD 11.7 billion) and a profit of about HKD 3.3 billion (USD 420 million).

In 1965, Swire acquired the Coca-Cola franchise in Hong Kong, Hong Kong Bottlers Federal, with a bottling output of more than 100 million bottles per year. From the beginning to this day, Swire has grown into one of the world’s leading Coca-Cola bottling companies, serving more than 700 million people.

Swire is also an important partner in bringing the US carbonated beverage company back to China after a 40-year absence from the world’s most populous market. Besides Coca-Cola, Swire also offers tea and coffee-related beverages through its subsidiary Finlays.

Most recently, Swire announced it would acquire the carbonated beverage company’s packaging and distribution business in Vietnam and Cambodia to strengthen its position in the beverage industry in the Asia Pacific. The deal is expected to cost Swire more than 1 billion USD and the transaction will be completed in about 6 months.

If the deal is successful, Swire will dominate the bottling and distribution of Coca-Cola in the Asia Pacific, owning large markets such as China, the US, and Vietnam. With two non-alcoholic beverage markets valued at $6 billion and forecasted to grow at an average annual rate of 6% by 2036, this is indeed a deal worth investing in for Swire.

As one of Coca-Cola’s long-standing partners, Swire’s takeover of the packaging and distribution segments in Vietnam and Cambodia will help beautify the image as well as increase sales of this beverage company. This is a step that is considered to be a success for both Swire and Coca-Cola, helping them continue to dominate the Asia Pacific market for non-alcoholic beverages.

In Vietnam, Swire Properties – the real estate investment arm of Swire Group – has a presence in 2 projects in Thu Thiem area, The River, in cooperation with City Garden and Empire City – owns a 15.73% interest rate. interest in this project through an agreement with Gaw Capital Partners.

Source: Nguoi Dong Hanh