Vinamilk sells coffee plant to Trung Nguyen company

Vinamilk or Vietnam Dairy Products JSC. (VNM), one of the largest milk producers in Vietnam, announced that it has signed a contract to transfer the Saigon Coffee Factory to Trung Nguyen JSC in My Phuoc industrial zone, Binh Duong.

Vinamilk or Vietnam Dairy Products JSC. (VNM), one of the largest milk producers in Vietnam, announced that it has signed a contract to transfer the Saigon Coffee Factory to Trung Nguyen JSC in My Phuoc industrial zone, Binh Duong, the online newspaper VnEconomy reported on September 13.

Vinamilk expected to “focus on developing its strength in milk production” after the transfer, said Executive Director Ngo Thi Thu Trang, adding that no member in the board of management has direct or indirect interest in the case.

Meanwhile, Le Tuyen, Marketing and Communication Director of Trung Nguyen Company claimed “for Trung Nguyen, this is a preparation of a long-trip to remove unfair paradox on the Vietnam’s coffee market, striking for enhancing the position of Vietnam coffee brand on the international arena.”

In May, 2008, Vinamilk said it would invest $2 million to advertise instant coffee with the brand Moment born in 2005, with an aim to raising its market share to 30% in 2010 from 5% at that time; and cooperated to advertise Moment brand with the English football club Arsenal. Moreover, Vinamilk also said its coffee plant in Binh Duong with a total investment of $17 million had capacity of 1,500 tons of instant coffee and 2,600 tons of ground coffee every year.

Trung Nguyen said the acquirement of Saigon coffee plant was in the strategy of completing its factory of technology and secret with an investment of VND2.2 trillion in five years.

At present, Trung Nguyen has four largest coffee processing factories including two ground coffee ones and two instant coffee ones. There is another VND800 billion ground coffee plant which was kicked off construction in June 2009 and expected to be operational in the coming three to five years.

The purchase of Saigon coffee factory will help boost Trung Nguyen’s capacity of instant coffee three times, Tuyen said. – Vneconomy

Tags: Saigon Coffee Factory, Trung Nguyen, Vinamilk

Posted by VBN on Sep 14 2010. Filed under Food & Beverage. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry