Apart from Vinacafe, which is owned by Viet Nam National Coffee Corporation, and Nestle's Nescafe, Viet Nam Dairy Products (Vinamilk) has launched the brand Moment, while Trung Nguyen, already a strong player in the business, has sunk US$10 million to produce 200 tonnes of its G7 coffee.
Vinacafe is the instant coffee leader with 45 per cent stake in the domestic market, followed by Nescafe at 38 per cent, G7 at 10 per cent while the remaining 7 per cent is shared among several smaller brands.
Competition is toughest, according to executives, among the larger companies with Vinacafe having the best understanding of consumer demand and tastes, while Nescafe has the backing of the large multinational Nestle to help create marketing and development strategies.
Vinacafe is pumping $20 million into a new factory, which can produce up to 3,000 tonnes of instant coffee a year. Construction began last year.
Meanwhile, Nestle has begun a campaign to have its products sold on every corner, says Vikas Ahuja. The company has also invested in consumer studies and will soon launch three new three-in-one flavours.
Vinacafe enjoys 45% boost in exports
The Viet Nam National Coffee Corporation (Vinacafe) has posted VND5.28 trillion ($330 million) in 2006 revenue and exported $232 million of goods, a year-on-year increase of 45 per cent.
The company this year plans to speed up the equitisation of its subsidiaries, invest in coffee planting, upgrade the irrigation systems at existing farms and improve processing facilities to ensure quality.
Vinacafe projects to earn VND6.7 trillion ($419 million) in revenue this year. |
VNS
