Vinamilk has announced its partner in a joint venture established in the Philippines, Del Monte Philippines, Inc. (“DMPI”), a subsidiary of Del Monte Pacific Limited and a leading food and beverage company in the Philippines.
Total investment capital in the first phase is US$ 6 million, of which Vinamilk and its partner each contributes 50 per cent. The joint venture will import dairy products from Vinamilk to market and distribute in the Philippines through DMPI.
The joint venture will use the co-brand, Del Monte-Vinamilk, for its products and promote the brand strengths of both companies. DMPI has been operating in the Philippines for more than 95 years and is famous for its pineapple and mixed fruit packaged products, juices and ketchup, which have been favorites of Filipino consumers for generations.
In the ranking of the top 100 Asia-Pacific brands in the Philippines in 2020, Del Monte was ranked the best domestic brand and one of three food and beverage brands in the Top 20.
Vinamilk is currently ranked 36th in the list of largest dairy companies in the world, and the only representative of Southeast Asia in this list. Vinamilk has been honored as a national brand for 12 consecutive years with the brand value of more than US$ 2.4 billion announced by Forbes Vietnam. In 2020, Vinamilk headed the Top 10 Vietnam’s Strongest Local Brands, belonging to the ranking of 1,000 leading brands in Asia.
Thee logo of Del Monte - Vinamilk Joint Venture has been officially announced
The Joint Venture will have the synergy of Vinamilk’s strengths in production and Del Monte’s in distribution. Vinamilk currently owns a closed value chain with a system of 13 dairy-cow farms meeting international standards such as GLOBAL G.A.P, Organic European and American Organic Standards; exploiting nearly 160,000 dairy cows, combined with a system of 13 dairy processing plants all over Vietnam.
With large production capacity, Vinamilk is currently trading more than 250 types of dairy products, which not only fully meet the various needs of milk, dairy products and beverages in the country but also are exported to 56 countries in the world.
Meanwhile, DMPI currently owns an extensive distribution network throughout the Philippines, has long-standing and strong relationships with leading food and beverage retailers and partnerships with distributors across the country. Currently, DMPI products are circulated in more than 100,000 retail points in the Philippines.
Modern and closed production lines at Vinamilk plants
The Philippines is the second most populous country in Southeast Asia, with people’s incomes and per capita consumption of dairy products increasing. The joint venture offers an opportunity for the growth of the dairy industry in the Philippines as Vinamilk expands into a new market and Del Monte expands into a new category with essential products used by consumers daily.
Speaking at the online launch event of the joint venture, Mai Kieu Lien, General Director of Vinamilk, said: “We have researched many businesses before cooperating with Del Monte and believe that this is a perfect partner for Vinamilk because of Del Monte’s advantages in terms of brand, distribution systems, and understanding consumer demand for food and beverage in the Philippines."
"In addition, the most important thing is that both corporations have the same strategy that is extensive investment in the dairy industry in order to bring healthy dairy products and beverages with appropriate tastes and good prices to the Filipino people.”
A 26,000-hectare pineapple farm in Bukidnon of Del Monte Philippines
Also at this event, Luis Alejandro, Chief Operations Officer of DMPI, said: “Vinamilk-Del Monte Joint Venture is a combination of leaders with rich experience and proven position in the market. Vinamilk is the leading dairy company in Vietnam and Asia; they have many strengths to compete and conquer the market."
"I am confident in the success of this joint venture thanks to three factors: We have deeply researched the market and competitors to build a competitive advantage; We have quality products that meet the nutritional needs of Filipino consumers; We have also carefully prepared business and marketing plans, and built distribution channel coverage as well as communication plans to convince consumers to not only use the product but also have a strong attachment to us.”
At the end of July 2021, in the difficult context of social distancing, Vinamilk completed production of the first batch for the joint venture and exported to the Philippines. The joint venture’s products are expected to be officially launched to Filipino consumers in September 2021. The first year revenue of the joint venture is estimated at about US$8.8 million and the potential for compound growth is around 50 per cent, per year in the medium term.
About Vinamilk (www.vinamilk.com.vn)
Vietnam Dairy Products Joint Stock Company (Vinamilk) is a leading nutrition company in Vietnam and currently ranked 36th in the Top 40 globally largest dairy companies. With a closed value chain including 13 dairy-cow farms with nearly 160,000 cows, 13 plants and 250,000 retail points across Vietnam, Vinamilk is leading the dairy market in key categories such as liquid milk, baby formula and condensed milk. It has been the most chosen consumer brand elected by Vietnamese consumers for the past 10 years.
Vinamilk products have been exported to 56 countries such as the US, Japan, Korea and ASEAN. Vinamilk has invested in three plants in the US, New Zealand, Cambodia and a dairy-cow farm complex in Laos. International business currently contributes 15 per cent of Vinamilk’s total revenue. These advantages have helped Vinamilk achieve double-digit growth in both revenue and net profit over the past 10 years.
Vinamilk has listed on the Ho Chi Minh Stock Exchange since 2006. Majority shareholders of Vinamilk are State Capital Investment Corporation, Fraser & Neave and Platinum Victory (a unit of Jardines JC&C).
About Del Monte Philippines, Inc. (www.delmontephil.com)
Del Monte Philippines, Inc. (DMPI) is a leading manufacturer, marketer and distributor of high quality and healthy food and beverage products. The company has been operating for more than 95 years in the Philippines and is a market leader in pineapple and mixed fruit packaged products, juices, ketchup and pasta sauces.
DMPI has the copyright to trademark Del Monte of the Philippine for processed products. The company also sells products under the well-known corporate brands such as S&W, Contadina and Today's. Two-thirds of DMPI’s sales are in the Philippines and the rest come from the international market.
DMPI operates a closed pineapple production system with a 26,000-hectare pineapple farm in Bukidnon, a frozen fruit processing facility, a non-concentrated juice processing plant, and a fruit processing facility which is about an hour away from the farm. DMPI also operates a beverage bottling plant in Cabuyao, Laguna.
DMPI is the most profitable subsidiary of Del Monte Pacific with a record for business results for the fiscal year ended in April 2021, of which the revenue reached 34.5 billion pesos, increasing by 8 per cent, and the net income increased by 33 per cent to 4.6 billion pesos. In the same period, DMPL, the parent company, had revenue of US$ 2.2 billion and achieved the highest net profit of US$ 63 million.
Del Monte Pacific Limited is a company listed on the Singapore Stock Exchange and the Philippine Stock Exchange, indirectly owning 87 per cent of DMPI.