Vinamilk forms joint venture with Del Monte in Philippines

Thursday, Aug 19, 2021 08:11

A production line at a Vinamilk factory. — VNA/VNS Photo

Vietnam Dairy Products (Vinamilk) has forged an alliance with Del Monte Philippines Inc (DMPI), a subsidiary of Del Monte Pacific Limited.

Total investment capital for the first phase is US$6 million, in which Vinamilk and its partners contribute 50 per cent each.

The joint venture will import dairy products from Vinamilk, and market and distribute them in the Philippines through DMPI. It will use the co-brand Del Monte-Vinamilk for its products and promote the brand strength of both businesses. The joint venture will take advantage of Vinamilk’s strength in production and Del Monte's in distribution.

Despite facing difficulties due to the application of social distancing, Vinamilk completed production of the first shipment for the joint venture at the end of July.

The products are expected to officially reach Filipino consumers in September. Revenue of the joint venture in the first year is estimated at around $8.8 million and has the potential for double digit growth of about 50 per cent a year in the medium term.

Vinamilk is among the top 40 largest dairy companies in the world. Its products have been exported to 56 countries including the United States, Japan, the Republic of Korea, and the Association of Southeast Asian Nations (ASEAN).

Vinamilk has three factories in the US, New Zealand, and Cambodia and a dairy farm complex in Laos. Overseas business currently accounts for 15 per cent of Vinamilk's total revenue.

DMPI is a producer and distributor of healthy food and beverages including ready-to-drink pineapple juice. It has been operating for more than 95 years in the Philippines

Del Monte Pacific Limited is a company listed on the Singapore Stock Exchange and the Philippine Stock Exchange. It indirectly owns 87 per cent of DMPI. — VNS

Comments (0)