Each company committed $3m to the project, which will see DMPI distribute imported Vinamilk products.
The JV will use the co-brand of Del Monte-Vinamilk for its products, which the companies said is to leverage the brand equity of both corporations.
Vinamilk currently has around 250 product SKUs covering a range of dairy and beverage products both domestically and in 56 other countries. DMPI products are currently available across the Philippines in more than 100,000 stores.
The country has the second largest population in southeast Asia, and the JV companies pointed to the fact that both income and dairy consumption are on the rise.
Mai Kieu Lien, CEO of Vinamilk, said, “We had studied many corporations before collaborating with Del Monte and believe that this is the most ideal partner with Vinamilk given Del Monte’s advantages in equity brand, distribution network, the understanding of consumer demand for food and beverage in Philippines.
“In addition, the most important thing is that both corporations share the same strategy to invest extensively in the dairy industry to offer the Filipino consumers healthy dairy and beverage products that fit their tastes at a reasonable price.”
Luis Alejandro, COO of DMPI, said, “The Vinamilk-Del Monte joint venture is a union of market leaders with heritage and solid track record in their businesses. Vinamilk is the leading dairy company in Vietnam and Asia with many advantages to compete and win market.
“I believe in the success of this joint venture based on three factors: Del Monte has deeply studied the market and competitors to develop competitive advantages; We have quality products that meet nutritional needs of Filipino customers; We also have prepared solid sales and marketing plan, and established strong distribution presence as well as communication plan to drive consumption and consumer loyalty.”
At the end of July 2021, Vinamilk finished production of the first order and exported products to the Philippines that are expected to be on shelf in September. Revenue in the first year is estimated at around $8.8m and the potential CAGR is 50% in the medium term.