The joint venture of two food giants Del Monte and Vinamilk of Vietnam is eyeing a conservative 10 percent market share in the Philippine dairy market in the immediate term.
During the virtual media conference, Eileen Asuncion, commercial head for Del Monte Vinamilk, said they are targeting 10 percent market share in the dairy market in the immediate term but expressed confidence that with Del Monte’s dominance in its own food categories in the Philippines, the dairy business unit is expected to grow as well. Asuncion said they will focus on building its presence and acceptance in the domestic market first.
But, Luis Alejandro, president of Del Monte-Vinamilk and COO of Del Monte Philippines, Inc. (DMPI), said that depending on the success of the joint venture, there is also a plan for local production. Alejandro cited Del Monte’s big footprint with 26,000 hectares of pineapple plantation in Bukidnon where they also grow cattle.
To make an immediate impact in the local market, Asuncion said that Vinamilk products though premium are being sold at five percent cheaper than its segment competitors. It is now available in groceries and supermarkets and e-commerce platforms.
Asuncion stressed that the 50-50 joint venture between Del Monte and Vinamilk Dairy Products JSC with capitalization of P300 million is a real partnership that goes beyond a distribution arrangement. Vinamilk products sold here are being developed by its Vietnamese partner specifically for the Philippine market.
In venturing into the dairy food category, Alejandro said that dairy is “very much part of our long range plan” to venture into different related food categories. He said this expansion could not have been made possible without a partnership and only became a reality with Vinamilk.
“This is something to be part of our company and we believe in this partnership,” said Alejandro.
Del Monte, one of the Philippines’ most trusted brands, and Vinamilk is the most valuable brand in Vietnam and one of Asia’s largest dairy companies.
Speaking at the joint venture announcement event held online last August, Mai Kieu Lien, chairperson of Del Monte-Vinamilk and CEO of Vinamilk said, “We highly appreciate Del Monte’s supportiveness and cooperativeness during these times and hope that we will together develop a successful joint venture in the Philippines for mutual benefits. Vinamilk is confident that we can provide Filipino consumers, through this joint venture, with healthy dairy products, giving them more choice in nutritional products that meet international standards.”
Alejandro also cited the joint venture as “a union of market leaders with a heritage and solid track record for success in their businesses.”
“Vinamilk is the leading dairy company in Vietnam and is among the biggest in Asia, having many advantages to compete and win in the market. With Vinamilk bringing its expertise for dairy manufacturing and innovation to the partnership, DMPI, on the other hand, will leverage its extensive distribution presence across all channels in the country. In addition, Del Monte is a brand well-loved and trusted by Filipinos because we always strive to gain a deep understanding of the Filipino consumers’ needs and wants. This ensures that our products not only have a competitive advantage, they will deliver solutions for our consumers’ most important and pressing concerns,” Alejandro said.
The Del Monte-Vinamilk selection of dairy drinks consist of the Del Monte-Vinamilk Fresh Milk, IQ Smart™ Flavored Milk, YoGurt Drink, and Tea Bliss™ Milk Tea.
With its line of new products, Del Monte-Vinamilk aims to make delicious nutrition easy as well. “Moms are pressured more than ever, balancing her needs with that of her family’s as they all navigate through the pandemic at home. While there is an increased need for immunity-boosting healthy food, every mom knows it’s not always easy to feed her family such, particularly if the kids are being picky about what they eat. We aim to help them with that as well,” said Dani Eleazar-Ocampo, Marketing Lead for the brand.