Del Monte Philippines, Inc. (DMPI), a subsidiary of Del Monte Pacific Limited, is diversifying into the dairy business after forging a strategic alliance with Vietnam Dairy Products JSC (Vinamilk).

In a disclosure to the Philippine Stock Exchange, DMPI said it has entered into a joint venture with Vinamilk to expand into the dairy sector in the Philippines with both companies contributing 50 percent of the total investment capital.

The joint venture will import dairy products from Vinamilk, and market and distribute them in the Philippines through DMPI.

Vinamilk is among the Top 40 largest dairy companies globally, ranked 36th by revenue with US$2.6 billion of sales in 2020.

It is also the largest listed food and beverage company in the stock exchange of Vietnam with a market capitalization of US$9 billion.

With an end-to-end value chain comprising of 13 dairy farms certified with global standards (GLOBAL G.A.P., EU/US Organic) and a total herd of nearly 160,000 cattle, 13 factories and 250,000 retail outlets across Vietnam, Vinamilk’s product offering includes more than 250 SKUs that are able to address all nutrition needs of consumers.

Beyond Vietnam, Vinamilk has been exporting to 56 countries and is known for their quality, nutrition and innovation. It also has three factories in the USA, New Zealand and Cambodia and a major organic dairy farm complex in Laos.

The joint venture with DMPI will leverage on Vinamilk’s successful long track record in the dairy industry spanning 45 years.

The joint venture will co-brand its products and leverage the strong brand equity of Del Monte in the country.

The Philippines has the second largest population in Southeast Asia and a relatively low per capita consumption of dairy products.

The joint venture provides an opportunity for growth in the domestic dairy industry as Vinamilk expands into a new consumer market, and as Del Monte expands its footprint into a new category regularly consumed in Filipino households on a daily basis.

The joint venture will combine the strengths of Del Monte and Vinamilk, leveraging Vinamilk’s technical and manufacturing expertise for developing value-added product offerings anchored on quality, health and functional benefits, while also leveraging the brand and extensive distribution network of DMPI in the Philippines.

As a market leader, it has strong, long-standing relationships with leading food and beverage retailers and partnerships with distributors all over the country.