Vietnamese dairy market leader, Vinamilk and packaged food producer, Kido Group Corporation signed a memorandum of understanding (MOU) in June 2020 to set up a joint venture, Vinamilk-Kido Beverage Joint Venture Company Ltd (Vibev). Vinamilk will own 51% and KDC owning 49% of the new entity’s shares.
Vibev will produce ice cream and other types of frozen foods and beverages, excluding carbonated drinks. Its first products are expected to be introduced by the third quarter of 2020.
Currently, Vinamilk controls more than 50% of the dairy market in Vietnam, while KIDO is the leader in the ice-cream market with a market share exceeding 40%. The JV between the two will have access to a vast distribution network of over one million points of sale to sell beverages across the country, of which 120,000 could also sell frozen foods. Vibeb could also leverage Vinamilk’s export network of 30 countries and territories to sell its products.
Vibeb is expected to earn revenues of VND 2 trillion (USD 86.6 million) in the first year.
(Sources: Vietnamnet; Vnexpress)