Vietnam’s KIDO and Vinamilk to form soft drink producer Vibev

According to the agreement, Kido Group (HoSE: KDC) will hold 49% stake in the new company while Vinamilk (HoSE: VNM) holds the remaining 51% of share. The joint venture is projected to operate beverage production industry.

It will produce healthy drinks, tea, milk tea. The new joint venture which will not produce carbonated drinks, will also produce and trade ice cream and frozen foods.

Value of the new company has not been disclosed.  

Data from Euromonitor said that in 2019 Kido Foods led Vietnam’s ice cream market with 41.4%. Kido said it plans to expand to the Southeast Asian and Asian markets.

Vinamilk, the largest dairy producer in Vietnam, has the market share of more than 50% in the country. Vinamilk is implementing a strategy to diversify its product lines including milk, powdered milk, nutritious powder, drinking yogurt, energy drinks and soft drinks, condensed milk & ice cream.

The joint venture is expected to integrate the advantages of Vinamilk and KIDO’s distribution system that can be expanded to 1 million selling points. Every selling point consumes one bottle of soft drink, the company could sell one million bottles a day, KIDO leader said.

The joint venture plans to boost exports, initially with the support from Vinamilk's export network of 30 markets, said Tran Le Nguyen, General Director of KDC.