PHILIPPINES – Vietnam Dairy Products JSC (Vinamilk), has partnered with Del Monte Philippines Inc. (DMPI) on a joint venture that will see vinamilk products launch in the Phillipines.
According to Dairy reporter, each company committed US$3 million to the project, which will use the co-brand of Del Monte-Vinamilk for its products.
The companies plan to leverage the brand equity of both corporations to make a presence in the highly lucrative Pilipino market.
The Philippines dairy market recorded robust growth in 2019 and is continuing to attract both regional and international players.
Additionally, the country has the second largest population in Southeast Asia, and the JV companies pointed to the fact that both income and dairy consumption is on the rise.
The entry of Vinamilk, the largest dairy manufacturer in Vietnam, therefore marks a strategic and cash booster move given the heightened interest for dairy products in the country, says GlobalData, a leading data and analytics company.
Vinamilk currently has around 250 product SKUs covering a range of dairy and beverage products both domestically and in 56 other countries.
The company has established manufacturing facilities in high-potential countries like Myanmar and Cambodia. In 2020, it started exporting condensed milk to China and expanded operations in South Korea.
DMPI products are currently available across the Philippines in more than 100,000 stores, giving it a reach that Vinamilk can leverage to have its products in the hands of many Filipino dairy consumers.
Mai Kieu Lien, CEO of Vinamilk, said, “We had studied many corporations before collaborating with Del Monte and believe that this is the most ideal partner with Vinamilk given Del Monte’s advantages in equity brand, distribution network, the understanding of consumer demand for food and beverage in Philippines.
“In addition, the most important thing is that both corporations share the same strategy to invest extensively in the dairy industry to offer the Filipino consumers healthy dairy and beverage products that fit their tastes at a reasonable price.”
At the end of July 2021, Vinamilk finished production of the first order and exported products to the Philippines that are expected to be on the shelf in September.
Revenue in the first year is estimated at around US$8.8m and the potential CAGR is 50% in the medium term.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
