Sabeco, Vietnam's most important brewery group, grows with KHS technology
Investment in ninth KHS turnkey canning line
Werner Gessner*Tung Minh Tuan** The Vietnamese beer market is booming. While per capita beer consumption in Vietnam was just 10 liters at the turn of the millennium, by 2006 it had reached 18 liters and is currently 28 liters. And the trend is towards a much higher figure. Double-digit percentage growth is also forecast for the coming years. Experts are assuming an annual beer consumption of around 70 million hectoliters by the year 2025. By comparison, just 25 million hectoliters of beer per year are drunk in Vietnam today. As Vice President of the Vietnam Beer Alcohol Beverage Association (VBA) and former Chairman of Sabeco Trading Co. Ltd (Sabeco), Van Thanh Liem is an outstanding connoisseur of the Vietnamese beer market. According to Liem, "In my opinion, the Vietnamese beer market will grow particularly strongly in the future, as up to now relatively little beer has been consumed especially in rural areas. I see enormous potential for growth here." Liem has already spurred on the Vietnamese beer market on several occasions. For example, when he started canning beer for the first time at Sabeco in 2007 and thus became a pioneer in the Vietnamese beer market. Even at that time, Liem believed that canned beer could be particularly successful in Vietnam. And he was right to do so. Today, approximately 30% of beer sales within Vietnam are accounted for by canned beer. Liem explains, "We started canning using KHS technology. This gave us the so essential assurance that we were providing only the best quality beer in cans. As we have had such good experience with KHS, we have remained faithful to our trusted supplier over the years. Since 2007, we have invested in at least one KHS turnkey canning line each year." Currently, nine KHS turnkey canning lines are in operation at Sabeco - the latest being located in the Binh Tay Brewery in Ho Chi Minh City. All canning lines are producing almost exclusively in three-shift operation. "Our KHS systems are working with high efficiency throughout, thanks to the best technical solutions and outstanding KHS service which, if it should be required, is available around the clock", says Liem. "What is more, with our consistent choice of KHS turnkey canning lines, we quickly made a mark in the Vietnamese beer market. Today, 90% of all canning lines in Vietnamese breweries come from KHS." Increased sales from 160,000 hectoliters/year to 12 million hectoliters/year Looking at Sabeco's development, it is clear what a meteoric rise the brewery group has experienced in just a very short time. In 1996, Sabeco had just a single brewery with an annual output of 160,000 hectoliters. By 2005, this had increased to three breweries with a capacity of 300,000 hectoliters/year. And from then on, things happened in rapid succession. One brewery after the other was incorporated into the group. Today, a total of 27 breweries belong to Sabeco (all in all, there are around 60 breweries in the Vietnamese market). Sabeco also has two further businesses whose task is to produce high-percentage alcoholic beverages, and one company which produces non-alcoholic carbonated soft drinks. Sabeco beer sales currently lie at 12 million hectoliters/year. This means that almost every second liter of beer which is consumed in Vietnam comes from Sabeco breweries. Breweries skillfully positioned within Vietnam The Sabeco breweries are skillfully positioned within Vietnam. With the elongated coastal state, this results in a specific saving of transportation and logistics costs and takes into account the associated aspect of sustainability. Five beer brands in different containers Sabeco breweries produce a total of five branded beers: Saigon, Saigon Export, Saigon Special, 333 and Sagota. Different types of container are used for these five brands. For example, the 0.45-liter glass bottle is provided for the classic Saigon brand, while Saigon Export is sold in 0.355-liter glass bottles and Saigon Special in 0.33-liter glass bottles. For the 333 brand, the 0.33-liter can is used alongside the 0.355-liter glass bottle. The premium Sagota brand is sold exclusively in 0.33-liter cans. Currently, the best sellers in the Sabeco range are the 333 and Saigon Export beers. Export activities awaken curiosity in Vietnam Originally intended exclusively for export, the Saigon Export brand is enjoying increasing popularity within Vietnam. This beer is currently exported to 22 countries, of which the most important are Japan, the USA and Australia as well as European countries. In the countries to which it is exported, Saigon Export is consumed mainly in Vietnamese restaurants. Liem explains, "With a potentially expanding beer market, such as the Vietnamese market, we see the export business as a purely additional business, among other things to make the consumer curious about our country Vietnam. The main focus remains on our domestic market, as ultimately it is this which will guarantee rapid growth in the future." Looking at the Asian beer markets, the Vietnamese market is today in third place. If beer consumption increases as forecast, the Vietnamese beer market will be in second place in Asia by 2020. Premium beers gain market share An interesting fact is that, with the recently introduced Sagota brand, Sabeco has quite specifically taken a step in the direction of the premium beer sector. Liem comments, "Our main target group in future will continue to be the middle class. Here, we focus particularly on the young adult target group. However, we see an increasing demand for premium beer in Vietnam. We take account of this with Sagota." At the moment, premium beer has a market share of 15% in the Vietnamese beer market. According to the forecasts, this is expected to double to 30% by 2020. It goes without saying that Sabeco, as Vietnam's Number One brewery group, would hope to benefit from this. The can as the container of the future Sabeco also expects to benefit from a forecast further rapid increase in popularity of cans in the market. Liem explains, "We assume that canned beer will grow not only because of the general growth in the Vietnamese beer market, but also that it will grow further at the expense of the classical refillable glass bottle. In my opinion, canned beer could account for 50% of beer sold in the Vietnamese market by 2015. And this means, being prepared for it." There are many factors in the can's favor in Vietnam. First and foremost is the high convenience. Canned beer is easy to take anywhere and cans are easy to dispose of. There are no returns as in the case of refillable glass bottles. In addition - and this is another decisive plus point - canned beer is tamper-proof. What is more, the consumption of canned beer not only demonstrates "Western lifestyle", but also that the consumer is able to afford it. The "freshness aspect" - an argument for the 0.33-liter can Although some beers are available on the Vietnamese market in 0.65-liter cans, Liem does not think much of this variant. "High temperatures prevail throughout the year in Vietnam. A 0.33-liter can is much more likely to guarantee a cold beer. For us, this is reason enough to stay with this size in the future." The ninth KHS turnkey canning line Likewise, further forecast growth of the market for cans is reason enough for Sabeco to continue to invest in KHS turnkey canning lines. The most recent investment was in a KHS turnkey canning line at the Binh Tay Brewery in Ho Chi Minh City in 2011. For reasons of satisfaction, the scope of this canning line is almost exactly the same as those ordered previously. With a capacity of 33,000 cans/h, it produces with high efficiency right around the clock. "It is important for us that the best KHS filling and packaging technology is accompanied by perfect service from our trusted partner," says Liem, "This perfect service is guaranteed by KHS Vietnam." Generally speaking, the highest service quality is an important aspect in the success of KHS in Vietnam. With more than 30 service engineers, KHS Vietnam is able to offer round-the-clock service. Not only that, but spare parts are readily available. A few facts demonstrate the popularity of KHS quality in the Vietnamese market today. More than 40 KHS filling and packaging lines are in operation in Vietnam's beverage industry. Even though KHS has been servicing the Vietnamese market for 20 years, this represents a tremendous success considering that it has only had a local presence since 2007. The heart of the filling system - the Innofill DVD The heart of the new KHS turnkey canning line in the Binh Tay Brewery is the Innofill DVD filling system with its more than 50 filling stations. Directly after rinsing, depalletized cans are fed to the line in a single lane. The principle of electromagnetic inductive flow metering is used here to achieve maximum fill level accuracy. Deviations in can capacities supplied by various manufacturers are therefore no longer an issue. If a volume of 0.33 liters is programmed into the system, the cans will then contain exactly 0.33 liters. The Innofill DVD features smooth product passages everywhere from the ring bowl to the filling valve. Aseptic membrane and sealing technology is used in all filling valves of the Innofill DVD and all other channels and routes exposed to the product. Prior to the actual filling process, the cans are first placed, sealed, purged, and then pressurized on the Innofill DVD. Purging cans with CO2 is important in order to meet the requirements of low-oxygen filling of beer. Once the CO2 purging and pressurization processes are complete, the liquid valve opens. Pneumatic cylinders control both the liquid valve and gas passages. The filling process takes place under pressure. When filling is complete, the pressure is reduced to atmospheric pressure. Gas escapes through the snifting channel. Snifting is pressure-controlled with little foaming. Liem comments, "In view of the experience we have gained with KHS Innofill DVD can fillers, we can well understand why KHS is known throughout the world for outstanding filling technology. Above all, we value the particularly low-oxygen filling process which ensures the quality of our beer in the can." PU control to maintain full flavor stability The next station for sealed and inspected cans is the single-deck Innopas PISC pasteurizer which has an integral PU controller. The pasteurization process is continuously controlled and optimized here. Continuously measured spray temperatures in the individual zones and the treatment time are used by a computer coupled to the pasteurization process to verify the actual product temperature and the pasteurization units supplied. Necessary control interventions are made quickly based on the gathered information. The energy and water consumption in continuous pasteurizer operation is reduced to a minimum by the heat exchange between the heating and recooling zones. Liem comments, "It is important that we achieve reliable destruction of the germs with the KHS PU controller while at the same time retaining full flavor stability of our quality beers." Packaging concept thought out down to the last detail The reinspection and coding of the cans which takes place after the pasteurization process is followed by the packing of the cans into cartons by means of the Innopack SP single-column packer. This has outstanding accessibility, enables formats to be changed quickly and is easy to operate. The Innopack SP handles the various tolerances in carton sizes individually. The cartons are positioned precisely by centering frames ensuring easy packing. Upstream of the Innopack SP is the Innopack CA carton opener. This sets up folded cardboard box blanks, folds in the bottom flaps, and glues them with hot melt. Only a few handwheels and linear guides with position displays are needed to adapt to the various carton sizes. This ensures short changeover and reliable startup of the carton opener. An Innopack CV carton sealer downstream of the Innopack SP ensures flawless glue application and perfectly sealed cartons. The central drive of the side conveying belts ensures that the belts run synchronously. There is no carton deformation during the gluing process. Central adjustments by means of handwheels with position indicators are also used here to adapt the machine to various carton sizes. Before the cartons are sealed, they are coded and their weight is checked by a check weigher equipped with integrated automatic faulty carton rejection. After this, the cartons are labeled before being fed to the palletizing station. The cartons are placed on pallets by the Innopal PBL1N1 column robot equipped with low-level pack feed. A special feature of the Innopal PBL1N1 with level compensation is an extension of the layer pusher towards the full pack conveyor. In this way, the layer pusher is able to take over the task of the row pusher to set up layer formations and palletize simultaneously. Plant Monitoring System (PMS) monitors and informs In order to ensure continuous monitoring of all system stations, the new KHS turnkey canning line is equipped with the Plant Monitoring System (PMS). This is a PC-aided production data acquisition system that records the operational status of the line and provides information on the entire line and the status of the individual machines ready for retrieval at all times. Weak points and malfunctions can be quickly identified, thus considerably increasing productivity. Seamless documentation of processing data ensures quality assurance. Costs can be classified and minimized by monitoring energy and media consumption. With PMS, it is not only possible to monitor actual line status but also to document and compare parameters over extended periods. "The Plant Monitoring System enables us to look at all facets of the system at any time and allows us to respond quickly. This once again helps us achieve high line efficiency" remarks Liem. Further expansion on the cards As usual, Liem is extremely satisfied with the ninth KHS canning line in the Sabeco brewery group, which has in the meantime been installed in the Binh Tay Brewery. And this is not only because the number nine is a lucky number in Vietnam. Liem explains, "As we are even today already planning further expansion of our capacity, it won't stay at nine canning lines for very long. What is more, we can easily see ourselves investing in further breweries in the future." Forward thinking includes KHS equipment Sabeco is also considering additional investment in fruit juice and mineral water businesses. Consideration, which once again has to do with forward thinking. "It is true that today most Vietnamese still press their own fruit juices and used boiled water for drinking water", says Liem. "However, in my opinion, this behavior could quickly change in future with increasing average income. We would then need to be ready with consistent concepts." Consistent concepts, with the help of which - Liem is sure - Sabeco will soon find a foothold in new business areas; consistent concepts which generally speaking single out Sabeco and which have not for nothing made the company one of the most important brewery groups in Vietnam. Consistent concepts which encompass a perfectly thought-out marketing strategy as well as outstanding product quality. Consistent concepts within which KHS will continue to play an important role in the field of system technology in the future. * Manager Market Zone Asia Pacific, KHS GmbH, Bad Kreuznach,
Phone 06 71-8 52-24 33
** General Director, KHS Vietnam, Ho Chi Minh City, Phone +84-8-39 97 97 93