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Is it easy to make money from Vietnam’s coffee market?

Both Vietnamese and foreign investors are rushing to pour money into coffee farms and coffee house chains as the market is very promising. But not all of them will succeed.

VietNamNet Bridge - Both Vietnamese and foreign investors are rushing to pour money into coffee farms and coffee house chains as the market is very promising. But not all of them will succeed.


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More new coffee brands have turned up



More new coffee brands have turned up in the Vietnamese coffee market, where ‘veterans’ like Trung Nguyen, Vinacafe Bien Hoa and Nestle are holding their firm positions.

Three ‘big guys’

Though the trio has similar products, each has special characteristics which make them original.

Trung Nguyen ranks Number 1 in terms of diversity with many coffee products, from instant to roasted coffee to civet coffee. 

Nescafe provides a wide range of mineral water products, food for children, and coffee and dairy products. 

Meanwhile, Vinacafe only focuses on products made of coffee, offering diverse coffee flavors for choice.

More new coffee brands have turned up in the Vietnamese coffee market, where ‘veterans’ like Trung Nguyen, Vinacafe Bien Hoa and Nestle are holding their firm positions.

Trung Nguyen’s instant coffee products are in Number 1 position in diversity with many choices. For example, Trung Nguyen has G7, G7 cappuccino, Passionata and G7 black instant.

Nescafe focuses on diversifying the 3-in-1 product line. Vinacafe develops four product lines, namely Vinacafe 100 percent coffee, Vinacafe 2 in 1, Vincafe 3 in 1 and Vinacafe 4 in 1.

However, Vinacafe reminds consumers of milk-coffee with strong sweet flavor. Trying Nguyen is better known for roasted coffee with typical aroma and Nescafe products are favored for those who like a more bitter taste.

Nescafe is a Swiss brand, while Vinacafe and Trung Nguyen are 100 percent Vietnamese, and are favored by Vietnamese.

After the merger with Masan, Vinacafe’s agents are now in all 64 cities/provinces throughout the country. The sales of Vinacafe increased by 30 percent one year after the merger, while the selling price remains unchanged.

Trung Nguyen has always been very good at branding. It is served at global conferences, including ASEM, APEC, WEF and Miss Earth 2010.

A report from Nielsen released in early 2015 showed that Vinacafe led the market with 41 percent of market share, equal to the combined market share of Trung Nguyen and Nescafe.

Newcomer

The Coffee House, announcing its business strategy this year, has an ambitious plan to sell Vietnam’s coffee beans to the world market.

To implement its plan, The Coffee House has acquired the coffee division of Cau Dat Farm, a coffee, tea, vegetable and fruit grower.

The Coffee House now owns a coffee farm in Cau Dat, a processing workshop and a cold storehouse. The farm with total area of 33 hectares is expected to have coffee output of 400 tons by 2019.


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