KIDO acquires 68% of Thọ Phát in pursuit of food industry leadership

Friday, Oct 13, 2023 11:47

Workers at the Thọ Phát food processing plant in Hiệp Phước Industrial Zone in HCM City’s Nhà Bè District make buns. KIDO Group's acquisition of 68 per cent of Thọ Phát Quốc Tế Joint Stock Company underscores its ambition to lead the country's food production industry. — VNS Photo Thu Ngân

KIDO Group Corporation is steadfast in its pursuit of M&A opportunities to become the top player in Việt Nam's food industry, its CEO, Trần Lệ Nguyên, said.

During a media briefing in HCM City earlier this week, he said in light of the challenging economic conditions, the company would focus solely on essential food deals.

On the same day KIDO announced an increase in its stake in Thọ Phát Quốc Tế Joint Stock Company, a well-known buns maker, from 25 per cent to 68 per cent in a deal completed in June.

Investing in Thọ Phát brand marks a significant milestone for KIDO, aligning with its strategy to expand production and establish a foothold in international markets, Nguyên said.

Thọ Phát, alongside other brands and member companies, holds a pivotal role in this strategy.

On becoming a part of KIDO Group, Thọ Phát aims to develop a network of 1,000 agents, 1,200 Mini Bao shops and 100,000 retail outlets nation-wide.

Nguyên said KIDO Group's extensive sales system, with 450,000 points selling essential foods and 120,000 others selling chilled foods, coupled with a robust logistics and management setup, would propel Thọ Phát's growth.

Thọ Phát will be positioned as the "Bếp ăn Quốc dân" or "Vietnamese people's kitchen" brand in KIDO Group's business strategy, signifying its aspiration to become a staple in Vietnamese households and expand to at least 30 international markets.

It also plans to restructure the company in terms of technology, systems, brands, and markets.

Established in 1987, Thọ Phát has emerged as a beloved brand among Vietnamese people.

It boasts a vast network of over 6,000 points of sale across various trade channels with its main products being buns, sticky rice, dorayaki, and dim sum.

It has a modern 22,000sq.m production facility with a capacity of 10,000 tonnes a year. — VNS

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