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Friday, July 19, 2024

KIDO joins hands with Vinamilk to develop beverage, ice cream sector

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HCMC – At KIDO’s 2020 annual shareholder meeting on June 9, KIDO Corporation announced its cooperation with dairy company Vinamilk to establish a joint venture in the beverage and ice cream industry, of which 49% will be owned by KIDO and 51% by Vinamilk.

The joint venture called Vinamilk-KIDO Beverage Company is aimed at manufacturing and trading beverages including healthy drinks and tea alongside producing ice cream and frozen food.

A KIDO representative said that the scale of the beverage sector in the local market stands at over VND120 trillion and is expected to surge in the future, opening the door for investors to tap the market of some 100 million people.

The joint venture is expected to capitalize on the advantages and strengths of both firms, which are Vietnam’s leading enterprises, according to Mai Xuan Tram, deputy general director of KIDO.

Vinamilk accounted for 50% of the market share of the dairy sector in the country, while KIDO took the lead in the ice cream market, with a market share of 41.4%, according to a 2019 Euromonitor report.

The new joint venture’s major advantage is the distribution channels owned by the two firms, with over one million beverage outlets.

After being established, the joint venture will also exploit Vinamilk’s available export networks in 30 nations, said KIDO.

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