return icon Vietnamnet.vn

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.

 

{keywords}



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.

MORE NEWS

Law to protect businesses, the public in cyberspace

Ensuring safety in cyberspace is the task of all agencies, units and people, Deputy Minister of Information and Communications Nguyen Huy Dung said.

Hybrids: first phase of green-vehicle development in Vietnam

Electric cars are a growing trend in the world market, but they require high costs and charging stations. Hybrid cars that use two or more types of power are better suited at this time.

Waste from fishing industry sparks concern

The Ministry of Agriculture and Rural Development has reported a large volume of waste from the fishing industry, of which fishing vessels with a length of 6 meters or longer generate over 64,100 tons of plastic waste a year.

Groundwater exploitation threatens HCMC

HCMC is making effort to reduce groundwater exploitation to 100,000 cubic meters per day to combat land subsidence, the HCMC Department of Natural Resources and Environment said.

50,000 HCM City workers face falling incomes

As many as 50,000 workers in HCM City have witnessed falling incomes so far this year, said an official from the HCM City Labour Federation.

Ha Giang warns about online hotel reservation scams

Ha Giang Provincial Department of Culture, Sports and Tourism have warned tourists about online hotel reservation scams.

Wild sunflowers in bloom in northwestern Dien Bien Province

The wild sunflower is a shrub with an average height of about 2m - 3m. Its plant stem is dark green and erect. When the trunk turns to wood, it is grey-brown. It grows alone or in clusters, and the buds bloom at the beginning of winter.

HCM City to ban sleeper buses entering downtown from mid-December

The HCM City Department of Transport has proposed to ban sleeper buses entering the city centre between 6am and 10pm from the middle of next month in an effort to crack down on picking up and dropping off passengers illegally.

Low pay, high stress lead teachers to question their careers

Nhat Tien, a teacher at a primary school for autistic children in HCM City’s District 3, has been thinking about quitting her job for many times.

Dinh Hong Quan to defend IBF title

International Boxing Federation (IBF) champion Dinh Hong Quan is set to defend his title on December 10 at the Grand Ho Tram Resort in the southern coastal province of Ba Ria-Vung Tau.

Vietnam records boom in number of Japanese restaurants nationwide

The number of Japanese restaurants across the country has enjoyed strong growth in terms of scale and number, particularly in Ho Chi Minh City.

HCM City association to host first international photography fest

The HCM City Photography Association (HPA) is hosting the first-ever international photography festival from November 25-30.

VIETNAM BUSINESS NEWS NOVEMBER 26

Big supermarkets join Promotion Month 2022

Missosology picks locals contestant among Top 3 at Mister Grand International

Missosology, the world’s leading publication on beauty pageants, has named Vietnamese representative Vu Linh among its hot picks of the Top 3 currently participating in the Mister Grand International 2022 pageant.

HIV infections rise among people under 29

The number of young people catching HIV has seen an upward trend recently, with 50% of new cases being under the age of 29.
back_to_top