Key Insights From Flavors Conference 2024: Adapting To Consumer Spending Changes In F&B

On September 18th, the Flavors Conference, a highlight of the Flavors Vietnam 2024 series co-hosted by Vietcetera and Mastercard, was held with great success at the New World Saigon Hotel.

Themed “Building a Resilient and Thriving F&B Industry in Vietnam,” the event featured 38 esteemed speakers, including top F&B brand leaders from Pizza 4P's, Là Việt, and Dh Foods. The lineup also boasted advertising and media experts from TikTok, Decision Lab, Vero, investors such as Beacon Fund and Vietnam Investment Group, as well as international content creators like Sonny Side and Andrew Fraser.

Having drawn in over 400 attendees—many of whom are F&B entrepreneurs, the Flavors Conference 2024 provided them with invaluable insights and compelling brand narratives throughout all-day sessions.

Discover the highlights and standout moments of this event with Vietcetera!

3 Misconceptions of F&B Businesses About Consumers

In his speech on "A Recipe For Growth: How The F&B Industry Stays Fresh Through Economic Shifts," Thue Quist Thomasen, CEO of Decision Lab, noted that Vietnam's GDP is gradually recovering from the end of 2023, but consumers are increasingly focusing on saving and more conscious of their spending.

To better understand the current trends in Vietnamese dining services, Decision Lab conducted a survey of 2,418 individuals aged 18+ across the nation. Below are some key takeaways.

1. When eating out, is unique experience the most important emotional motivator?

False.

Placing a great value on building meaningful connections, consumers now tend to seek places that allow them to share a great time with their loved ones.

2. Do consumers just want good quality for their hard-earned money?

True.

According to Decision Lab's survey, the top three factors consumers consider when using dining services are (1) good value for money, (2) food taste, and (3) the quality of ingredients..

3. As consumers are becoming more careful with budget, are promotions more relevant than ever?

False.

Consumers are cutting back on expenses to make smarter spending decisions. As previously noted, the primary concerns for diners are the service and food quality. F&B businesses can retain customers by offering originally affordable prices and maintaining consistent quality.

So, what should F&B businesses do in response to changing consumer behaviors?

• Review brand performance to refresh the understanding of your competitiveness
• Review the market to look beyond business' current competitors and customers
• Explore ways to build brand's sustainable advantage beyond operational tatics

Sustainability, Sustainability, And Sustainability

In recent years, sustainability has become a cornerstone for the F&B industry, with both large and small enterprises striving to lessen their environmental footprint.

During the breakout session on "Sustainable Practices," Devyn van Niekerk, Corporate Director, Food & Beverage - Asia Pacific at Meliá Hotels International, highlighted the use of AI technology to manage and reduce buffet food waste through strategic measures.

For Diageo, as custodians of more than 200 brands which
are sold in more than 180 countries, managing packaging and bottle waste is a critical issue. Lam Duc Anh (Leo), Brand Ambassador at Diageo Vietnam, noted that the company has embraced several sustainable initiatives, such as producing lighter glass bottles, increasing the use of recycled materials in packaging to 60%, and ensuring all their glass bottles are reusable and recyclable.

Summer Le, Co-founder and Chef at Nén Danang (the first restaurant in Vietnam to receive a Michelin Green Star) and Nén Light Restaurant in Ho Chi Minh City, emphasizes living in harmony with nature—a value deeply rooted in Vietnamese culture. From the beginning, Nén has used hyper-sourced ingredients to support local communities and tell the story of traditional Vietnamese cuisine in each dish.

But, does relying solely on ingredients from the restaurant's own garden and local sources stifle a chef's creativity? According to Summer, it does quite the opposite, challenging chefs to explore each ingredient thoroughly and creatively utilize parts that are typically discarded, such as eggshells.

Vietnamese Brands Go Global

In recent years, a number of Vietnamese brands have successfully expanded beyond their national borders and established a presence in the global market.

During the panel on "Global Expansion" panel, leaders of Dh Foods, Là Việt, Heart of Darkness Brewery, and Saigon Cider shared their buzzing stories of venturing into foreign markets.

Nguyen Trung Dung, Chairman of the Board and CEO of Dh Foods, revealed that the company’s first export to Europe was unexpectedly not fish sauce but Tây Ninh shrimp salt. To make this product's debut happen, Dh Foods had to pass stringent quality checks and meet high factory and production standards. After establishing a foothold in Europe, it took Dh Foods two years to enter Japan, and the the brands have set its presence in Germany, South Korea, the UK, the USA, Australia, and Russia.

Là Việt, a coffee brand favored by the youth, has also established an office in San Diego, the USA. Tran Nhat Quang, CEO and founder at Là Việt, highlighted that Vietnam is not only the world’s second-largest coffee exporter but also possesses a rich coffee culture—qualities few markets can boast. Therefore, Là Việt aims to promote not only Vietnamese coffee but also encourage other markets to cultivate their own distinct coffee cultures.

What should F&B businesses consider if they wish to replicate this international success? The speakers unanimously agreed that understanding of whether the target market's consumers are ready to welcome Vietnamese products is crucial.

Hannah Jefferys, founder of Saigon Cider, now present in Hong Kong, Macao, the UK., and Cambodia, pointed out that consumer tastes differ across markets. For example, her ginger cider unexpectedly outperforms apple cider in the UK.

Ông John Pemberton, nhà sáng lập của hãng bia thủ công Heart of Darkness Brewery, chia sẻ về rào cản xoay quanh giá thành khi xuất khẩu sản phẩm Việt sang nước ngoài. “Tại sao bia thủ công Việt lại đắt ngang bia Mỹ, lẽ ra phải rẻ hơn chứ?” Để phá vỡ định kiến này, thương hiệu đã dành nhiều tâm huyết nâng cao chất lượng và đầu tư vào marketing và branding, đặc biệt là phải tái cấu trúc thương hiệu khi “Mỹ tiến".

John Pemberton, founder of Heart of Darkness Brewery, discussed the prevailing bias regarding the pricing of Vietnamese products relative to international brands. He posed a critical question that often arises among consumers: "Why should Vietnamese craft beer be priced the same as American beer when it should be cheaper?" This perception presents initial challenges for Vietnamese products entering foreign markets.

To counter this stereotype, Heart of Darkness Brewery has invested heavily in enhancing product quality and boosting marketing and branding efforts. John noted that they have taken the additional step of rebranding specifically for the U.S. market.

Maximizing Social Media To Reach Customers

In her presentation "Craving Connections: How Social Media is Fueling F&B Growth," Thuy Dinh, Head of Business Development at Buzzmetrics, noted that Vietnamese spend an average of six hours daily online, engaging in activities such as updating information, watching live streams, shopping, and socializing. This highlights the profound impact of social media on consumer behaviors, preferences, and decision-making processes.

Further insights from Buzzmetrics reveal that a typical Vietnamese user engages with about six different social media platforms monthly, a number which might increase with the introduction of Threads. Businesses, therefore, need to prioritize a multi-channel approach in their social media strategy to effectively build and develop their brands.

Buzzmetrics identifies key "hot topics" in the F&B sector depicted by specific graph shapes: M-shaped graphs for completely new and surprising products like coconut matcha, U-shaped for existing items that become trendy unexpectedly like salt coffee, and O-shaped for seasonal items like mooncakes. Understanding these patterns can help businesses tailor their marketing strategies to fit the product type.

Whent it comes to multi-channel marketing, Vu Duong, Marketing Director at IN Dining, highlighted the importance of "omnichannel" strategies in effectively reaching consumers across multiple platforms during the panel "Marketing & Buzz Stories."

Phat Tran - F&B Vertical Lead at TikTok Vietnam also shared insights on the recipe of viral TikTok videos, stressing that brands need to go beyond hiring external content creators by establishing distinctive channels and a unique brand identity to enhance their communication effectiveness.

What Do Investors Seek in F&B Enterprises?

During the panel discussion "Funding Strategies," Shuyin Tang, co-founder and CEO of Beacon Fund (an investment fund supporting women-owned and led enterprises in Southeast Asia), mentioned that currently there is some skepticism around the F&B sector in Vietnam.

By simply observing a neighborhood, one can see the rapid turnover of restaurants and cafes—establishments close and new ones open frequently. However, investors are primarily interested in businesses that demonstrate long-term viability and sustainabiliy.

Shuyin Tang highlighted that many F&B ventures start by adopting a franchising model, eventually evolving to establish distinct brand identities. An example is the Lotus Group, backed by Beacon Fund. Thanks to robust and stable management, Lotus Group's F&B sector now manages eight Japanese restaurant brands, such as Marukame Udon, Coco Ichibanya, and Conservo.

Evaluating a business's potential is complex, noted Viet Nguyen, Director of Vietnam Investment Group. A key determinant is the ability to embrace digitalization. Effectively utilizing tools like ERP systems and e-commerce platforms can significantly enhance a business's competitive edge.

Additionally, Viet Nguyen looks at a brand's franchising potential. Companies might initially acquire franchises from international brands, but after mastering operational strategies, they could develop their own brands and consider franchising them, potentially in markets like the USA.

In fact, many F&B companies invest a lot in upgrading their operations. In the panel titled "Operations & Innovations," Hai Linh Nguyen, co-founder of Pizza Belga, stated, "At Pizza Belga, we believe that developing and thoroughly training our team is key to enhancing our operational effectiveness."

Other moments at the conference:

Flavors Vietnam 2024, a partnership between Vietcetera and Mastercard, is a five-month long celebration of Vietnam's F&B scene. An annual occurrence since 2018, this year's theme is focused on “Crafting shared culinary experiences.”

Part of Flavors Vietnam 2024, Flavors Conference 2024 themed “Building a Resilient and Thriving F&B Industry in Vietnam” is a one-day event, bringing together F&B experts and communities to celebrate and elevate the Vietnamese F&B industry.

Place: New World Saigon Hotel, 76 Le Lai St., Dist. 1, HCMC
Date: 9:00 - 16:00, Wednesday, September 18th, 2024.

For more information on Flavors' upcoming events, visit website or contact us at @.

Special thanks to our sponsors and partners of Flavors Conference 2024: Title Sponsor (Mastercard), Major Sponsor (Diageo - Owner of Johnnie Walker, Tanqueray and Don Julio), Venue Sponsor (New World Saigon Hotel), Partner Sponsor (Nestle Professional and Tân Nhất Hương), Travel Partner (Be), Communications Partner (Vero Asean), Content Curator (Kamereo Vietnam) and Creative Partner (InSpace-Creative).

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