Heineken Is Closing One of Its Breweries Amid Reduced Demand for Beer, ‘Changing Consumption Patterns’

Bottles of Heineken beer are photographed March 30, 2018, in Washington. (AP Photo/J. David Ake, FILE)

Heineken is temporarily suspending operations at one of its Vietnam breweries this month due to low demand and “changing consumption patterns,” the company said, according to a Monday report from ESM Magazine.

“The overall economy including the beer industry has faced numerous challenges due to the economic slowdown which has led to a fall in consumer confidence and consumption patterns,” the company said, per ESM Magazine.

The company also noted that Vietnam’s tight drink-and-driving laws, which in 2019 made it illegal for drivers to have a blood-alcohol level higher than 0, have hurt beer consumption.

Heineken said the decision to suspend operations was made with the intent of addressing “asset-related solutions.”

Some employees affected by the closure will be relocated to other Heineken breweries in the country, the company said.

Vietnam’s beer market fell significantly in 2023, and the decline has continued in 2024, prompting the beer giant’s decision to shutter the brewery.

“We are seeking efficiency and economies of scale to streamline our operations, to enable us to continue investing and unlocking growth in Vietnam market,” Heineken said, according to ESM Magazine.

The Quang Nam brewery is the smallest of Heineken’s six Vietnam breweries. While Heineken says the closure will be temporary, the company hasn’t said how long it plans to keep operations suspended.

Earlier in June, Reuters reported that Vietnam’s finance ministry has proposed raising the special consumption tax on alcohol in the country to 100% by 2030, which could have negative effects on the industry.

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