The competition in the drinks and snacks market

Reports all show the great potential of the Vietnamese drinks and snacks market.

In July 2015, Mondelez International wrapped up a deal to take over the sweets manufacturing division of Kinh Do Group.

The competition in the drinks and snacks market



At that time, some analysts commented that the race in the sweets and snacks market had reached an end as Mondelez Kinh Do Vietnam would dominate the market.

However, Hemant Rupani, managing director of Mondelez Kinh Do Vietnam, said it is not easy to make money in the market.

At a meeting with the local press recently, he said that in other countries such as India and Australia, famous brands may hold up to 50 percent of market share. But in Vietnam, famous brands can hold no more than 20-30 percent because of the competition.

At present, Mondelez Kinh Do Vietnam holds 23 percent of biscuit market share, according to Nielsen Vietnam. There are no official statistics for packed sandwiches, because there are many local brands. However, the company is leading the market in terms of revenue.

In the drinks market, according to URC Vietnam, about 1,000 new products have been launched over the last two years. However, only 2.2 percent of them could survive after six months.

The general director of another sweets company commented that some manufacturers seem to have very few activities in the market (rarely run advertisement campaigns, have few sale programs for consumers and don’t market new products regularly), but their revenue is higher than people think.

 


According to Julius Flores, marketing director of URC Vietnam, drinks and food are the two growth motivators of fast moving consumer goods (FMCG). The growth rates of the two segments are always higher than that of the whole industry.

Consumers are also willing to try new products, which is why enterprises likethe two markets.

In the drinks market, according to URC Vietnam, about 1,000 new products have been launched over the last two years. However, only 2.2 percent of them could survive after six months.

The high competition of the market has forced enterprises to spend big money on marketing and advertisement campaigns. The managing director of a dairy production company admitted that the budget for advertisements has been increasing year after year.

Producers also have to compete with counterfeit goods.

Some days ago, appropriate agencies in Dong Nai discovered a shop which made counterfeit Number One energy drink, a well known brand of Tan Hiep Phat Group.

Phan Van Thien, deputy general director of Bibica, a sweets manufacturer, said that Bibica’s Goody and Hura biscuits are the most counterfeited.

Mai Lan 

Vietnamese bamboo straws adorn world drinks

Vietnamese bamboo straws adorn world drinks

People are turning against plastic straws, and a 32-year-old man has come up with a reusable bamboo alternative for the once ubiquitous and popular item that has become a symbol of throw-away culture.

Growing appetite for quality snacks

Growing appetite for quality snacks

Local snack producers in Vietnam are ramping up operations to tap into the growing demand amid changing eating habits.

 
 

Other News

.
GDVC licenses Hateco Group’s customs clearance site for post and courier items
GDVC licenses Hateco Group’s customs clearance site for post and courier items
BUSINESSicon  06/05/2021 

The General Department of Vietnam Customs has issued Decision No.1189/QD-TCHQ to grant an operational license for the customs clearance site for post and courier items of Hateco Group. The site is located in Long Bien Inland Clearance Depot in Hanoi.

Natural island estate attracts foreign investors
Natural island estate attracts foreign investors
BUSINESSicon  05/05/2021 

Not only attracting domestic customers, residential areas on natural islands also attract overseas Vietnamese and foreign investors thanks to convenient, classy and private ecological living spaces.

UCC coffee quality contest aims at supporting VN coffee production and farmers
UCC coffee quality contest aims at supporting VN coffee production and farmers
BUSINESSicon  06/05/2021 

Through the annual UCC Coffee Quality Contest, UCC Group has been contributing to promoting and improving the quality of Vietnamese coffee, towards the goal of sustainable development.

Copper production at the country’s largest mine
Copper production at the country’s largest mine
BUSINESSicon  05/05/2021 

During the holidays, workers at Sin Quyen and Tang Loong copper smelting factory in Lao Cai have still been on duty to manufacture and provide tonnes of 99.9% purity copper for electrical appliance production factories across the country.

Development of agri-food sector needs untying knots in mechanisms
Development of agri-food sector needs untying knots in mechanisms
BUSINESSicon  04/05/2021 

The agri-food industry has been maintaining high resistance to the Covid-19 pandemic, with the potential to boost economic recovery. It posted a growth of 4 percent in 2020, equivalent to a gross domestic product (GDP) contribution of US$3.7 billion.

Some 430 businesses leave market every day in Jan-Apr
Some 430 businesses leave market every day in Jan-Apr
BUSINESSicon  04/05/2021 

Some 430 businesses left the market, while only 368 new businesses were established on a daily basis from January to April 2021, according to the Ministry of Planning and Investment.

Vietnamese strategy: overcoming the pandemic, maintaining high economic growth
Vietnamese strategy: overcoming the pandemic, maintaining high economic growth
FEATUREicon  05/05/2021 

Vietnam’s economy is witnessing an impressive rebound and is expected to be among the best recovering economies in the world despite Covid-19 resurgence in neighboring countries.

Construction Ministry to cool down real estate market, prioritize affordable housing
Construction Ministry to cool down real estate market, prioritize affordable housing
BUSINESSicon  04/05/2021 

Minister of Construction Nguyen Thanh Nghi said the ministry will change the policies related to the development of affordable housing by adopting a new mindset.

European businesses’ confidence on Vietnam outlook reaches highest since Covid-19 emergence
European businesses’ confidence on Vietnam outlook reaches highest since Covid-19 emergence
BUSINESSicon  04/05/2021 

Vietnam is on the right path to achieving its twin goals of protecting health and promoting economic growth, stated Chairman of the European Chamber of Commerce in Vietnam (EuroCham).

'Nature - based' farming a winner in Mekong Delta
'Nature - based' farming a winner in Mekong Delta
BUSINESSicon  04/05/2021 

All of the delta’s 12 provinces and its major city, Can Tho, have been able to turn more unproductive rice fields into fruit tree and other crop...

Vietnam Airlines reports losses of nearly VND5 trillion in Q1
Vietnam Airlines reports losses of nearly VND5 trillion in Q1
BUSINESSicon  04/05/2021 

Vietnam Airlines incurred after-tax losses of nearly VND5 trillion in the first quarter of this year, surging over 90% year-on-year and the highest-ever losses recorded for a quarter, as the COVID-19 pandemic is emerging increasingly complicated.

The secret of mutant orchids selling for billions of VND
The secret of mutant orchids selling for billions of VND
FEATUREicon  04/05/2021 

Mat Nai (baby eyes), Gai Nhay (dancing girl), Hien Oanh, Ngoc Son Cuoc, Bao Duy, Bach Tuyet (Snow White), Buom Dai Ngan (jungle butterfly) and Hong Yen Thuy are some of the names given to mutant orchids. Some of them have sky-high prices.

Coolcat trading floor collapses, more than VND200 billion vanishes
Coolcat trading floor collapses, more than VND200 billion vanishes
FEATUREicon  04/05/2021 

Investors, from freelancers in Hanoi to sale officers in HCM City, have poured several million VND to several hundreds of million dong into Coolcat. About VND200 billion (nearly US$9 million) is likely to disappear.

It needs objective remarks for rice export decline
It needs objective remarks for rice export decline
BUSINESSicon  02/05/2021 

There are different remarks over the good harvest and export prices of rice in the Mekong Delta but the strong decline in rice export volume.

Vietnam’s digital economy to hit 52 billion USD by 2025
Vietnam’s digital economy to hit 52 billion USD by 2025
BUSINESSicon  02/05/2021 

Vietnam’s digital economy will likely reach 52 billion USD in value by 2025, according to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company.

Multiple financial risks still challenge Vietnam
Multiple financial risks still challenge Vietnam
BUSINESSicon  02/05/2021 

Global financial markets have been negatively hit and significantly shaken by the ongoing unpredictable, relentless and complicated developments under the Covid-19 pandemic, leading to continued global financial instability.

Foreign partners help to lay foundations for Vietnam’s rise
Foreign partners help to lay foundations for Vietnam’s rise
BUSINESSicon  02/05/2021 

In the 46 years since national reunification, Vietnam’s development has witnessed great strides with major contributions from foreign investment, which has been targeted to continue being an important driver of the domestic economy.

Development of supporting industry for automobiles awaits breakthrough policies
Development of supporting industry for automobiles awaits breakthrough policies
BUSINESSicon  02/05/2021 

Automobile sales in Vietnam are forecast to reach 1 million units a year by 2025, opening up substantial opportunities for businesses to develop a supporting industry for the sector.

Local steelmakers red hot on investment
Local steelmakers red hot on investment
BUSINESSicon  02/05/2021 

Over recent months, the steel market has retained positive momentum after its recovery in mid-2020, helping many steel producers record a strong performance in the first quarter of 2021.

Index results spark reforms in Vietnamese metropolises
Index results spark reforms in Vietnamese metropolises
BUSINESSicon  01/05/2021 

Despite strong efforts, major cities like Hanoi and Ho Chi Minh City are still lagging behind in the 2020 Provincial Competitiveness Index, triggering concerns over the efficacy of their reforms.

 
 
 
Leave your comment on an article

OR QUICK LOGIN