Campina form joint venture in Vietnam
In the spring of 2004, Campina took concrete steps to implement its strategy of taking up growth options in a limited number of Asian countries and these moves have now continued.
14/03/05 Campina has formed a 50/50 joint venture with Vinamilk, the largest dairy company in Vietnam, Campina will enhance its competitive power in Vietnam’s growing dairy market. For Campina, the launch of the joint venture represents an important step in realising its aim of fast growth in a selected number of Asian countries. The joint venture will focus on so-called value-added products such as yoghurts, dairy drinks and desserts, which will be marketed in Vietnam under the international Campina brand.
Vinamilk is a company with a majority state ownership. It has around 3,000 employees and turnover of USD 245 million. It has seven plants spread around the country and a large national distribution network. Vinamilk is specialised in the production and marketing of dairy products (such as sweetened condensed milk, milk powder and liquid milk), biscuits, fruit juices and other drinks. The company’s well-known brands are Vinamilk, Dielac, and Yomilk.
The joint venture will operate under the name Campina Joint Venture company. Campina’s contribution to the joint venture is its marketing know-how, its innovative power and the Campina brand. Vinamilk will contribute with its production facilities and distribution network throughout Vietnam.
Vietnam’s economy is growing quickly, due in part to foreign investment. Over the past ten years, average growth has hovered around seven percent or more. It is expected that dairy consumption will continue to grow in the coming years. Dairy is considered nutritious and healthy. Consumption is growing particularly quickly among children, partly as a result of government encouragement through a school milk programme. Distribution improvements and economic growth will also contribute to the expected growth in dairy consumption.
Campina says that the joint venture with Vietnam’s Vinamilk is characteristic of Campina’s decisive approach in the region. In the spring of 2004, Campina took concrete steps to implement its strategy of taking up growth options in a limited number of Asian countries. Campina first acquired the dairy activities of Parmalat in Thailand, which enabled it to fairly quickly build up a local organisation in that country. Campina then created a new sales organisation in Ho Chi Minh City (Vietnam), which focuses on the marketing and sale of long-life milk and products under the Campina brand.
“I am extremely pleased that Campina will be working with a partner like Vinamilk,” said Mr. J.J.G.M. (Justinus) Sanders, CEO of Campina BV. “Vinamilk has state-of-the-art production facilities and an elaborate distribution network throughout the country. Campina will provide marketing know-how together with innovative dairy products. By optimally combining the competitive power of both companies, we should be able to build significant market positions.”
“We are delighted with this joint venture with Campina, one of Europe’s largest dairy companies. It is important to us that both companies will be operating on the basis of equality,” adds Ms. Lien, Chairman of the joint venture’s Board of Directors. “Together with Campina, we can play a strong role in the added-value segment of the dairy market.”
