The new firm is invested with VND400 billion ($17.38 million) in the first phase
Vietnamese dairy giant Vinamilk on Friday announced its joint venture with packaged food producer KIDO Group Corporation to produce dairy products and beverages for the Philippines market.
The announcement came following the Ministry of Investment and Trade’s grant of an offshore investment certificate for establishment of the almost equal-footed joint venture in the Philippines to the two enterprises, with an initial capacity of US$6 million.
Vinamilk will own 51 percent of the new firm, which is invested with VND400 billion ($17.38 million) in the first phase, and KIDO will hold the rest.
The joint venture’s main operations will include the imports, marketing and distribution of non-carbonated soft drinks and ice cream under the brand Vibev in the Philippines market.
Vinamilk has more than half of Vietnam’s dairy market, while KIDO leads the ice cream market with a 41 percent share, according to figures from market research company Euromonitor International.
KIDO is judged by market experts to have an advantage over Vinamilk in terms of brand name and market share, while Vinamilk offers better prices.
Although Vinamilk and KIDO had been competing in the ice cream segment before, the two sides reached an agreement on the joint venture in June 2020.
In combination, the two firms own hundreds of thousands of retail outlets across the country, helping the new venture stay highly competitive in the domestic market.
