From being a leader in the industry to being mired in losses, Chuong Duong soft drink company wants to sell its factory.

(Dan Tri Newspaper) - After requesting an extension of its 450 billion VND loan from Sabeco in September 2025 due to its inability to repay, Chuong Duong soft drink company continued to experience declining business. Accumulated losses by the end of 2025 are estimated at approximately 350 billion VND.

Chuong Duong Beverage Joint Stock Company (Chuong Duong Sarsaparilla, stock code: SCD) has just announced the documents for its annual shareholders' meeting, scheduled to take place on February 27th.

The company is proposing to shareholders the transfer of the Nhon Trach 3 beverage factory. The management stated that a partner has submitted a bid meeting the urgent cash flow needs, and will present it to shareholders at an extraordinary meeting later this month.

The move to sell the factory comes amidst continuous losses for the company. As of 2025, the company has incurred losses for five consecutive years. According to the company's management, business results have not met expectations despite many efforts. Accumulated losses by the end of 2025 are approximately 350 billion VND.

"This places an urgent demand on the Board of Directors to make timely decisions to improve the company's financial capacity and cash flow independence," the shareholder proposal stated.

In September 2025, the company's Board of Directors requested an extension of two internal loans totaling over 450 billion VND from Saigon Beer, Alcohol and Beverage Corporation ( Sabeco , stock code: SAB). At the time, the company stated that if this request was not approved, it could face the risk of bankruptcy.

Chương Dương soft drink company, formerly Usine Belgique factory, was built in 1952 and belonged to the French BGI Group. In 2004, the company transitioned to a joint-stock company model. To this day, Chương Dương soft drink company continues to operate as a subsidiary responsible for beverage production of Sabeco (which currently holds 62.06% of the capital in Chương Dương soft drink company).

In the past, Chuong Duong sarsaparilla was a leading beverage producer in Southern Vietnam, famous for its tiger-branded sarsaparilla (also known as sarsaparilla drink). The period from 2009 to 2016 is considered the peak of Chuong Duong sarsaparilla's career, with continuously increasing revenue reaching a record high of 417 billion VND in 2016, and profits reaching tens of billions of VND each year.

However, from 2017 to the present, the company's revenue has gradually declined. At that time, the market saw the emergence of foreign beverage companies with effective marketing strategies and wide distribution networks, and Chuong Duong's "Tiger" brand soft drink quickly lost market share.

The company's leadership has acknowledged that its distribution and sales network has declined along with the industry trend, and that the company lacks the resources and capabilities to recover as quickly as the market leaders. The industry giants are also engaging in predatory pricing and exclusive contracts with retailers, putting pressure on the company regarding pricing, profit margins, and distribution channels.

Source: https://dantri.com.vn/kinh-doanh/tu-dau-nganh-den-ngap-trong-thua-lo-sa-xi-chuong-duong-muon-ban-nha-may-20260218191251303.htm