Vinamilk ramps up R&D efforts to win big globally
The Vietnam Dairy Products JSC (Vinamilk) is accelerating R&D efforts to create innovative products enriched with local flavours to satisfy global customers’ diverse tastes.
With its strategic investment in product development, international expansion, and commitment to sustainability, Vinamilk has become the only Vietnamese dairy company in the top 50 global dairy processors in 2021, ranked 36th.
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Vinamilk's R&D department contributes significantly to the success of exported products[/caption]
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Vinamilk's Export Business Overview[/caption]
Vinamilk’s local touch earns international trust
Vinamilk’s R&D efforts have developed customized products tailored to the Asian, African and Middle East markets, despite the challenge of limited research data in some regions.
Starting with only one infant cereal SKU, the company has since successfully developed and established 66 SKUs in multiple markets. One of Vinamilk’s successful innovative products is the Vinamilk Ridielac infant cereal with banana & date flavour. Launched in the Middle East market 5 years ago, this infant cereal with a twist of distinctive local flavour has been widely received, underpinning the subsequent penetration into the North African region upon the shared sentiment towards this delicacy.
The dairy giant has also enriched its African products with vitamin A and minerals to help tackle the challenge of vitamin A deficiency. This problem has left 42.4% of sub-Saharan African children with an increased risk of childhood mortality.
In the Middle East, which makes up 80% of Vinamilk’s export revenue, the brand’s localised Ridielac product is a favourite among locals, especially for the variety in flavours that has enabled consumers to switch regularly for their babies’ daily diet.
In Asia, Vinamilk has introduced sweetened condensed coconut milk in Japan to address demands for plant-based milk, while catering to local consumers with milk allergy.
“Our long-term relationship with Vinamilk was built upon accurate and flexible export services and high-quality products meeting all Japanese standards. We found the newly developed Condensed Coconut Milk impressive, and hold very high expectation that it will perform well in this market,” said Mr. Jun Hamada, Vinamilk’s Japanese partner.
The sustaining business strategy that results in growth despite COVID-19
Vinamilk’s overseas success significantly contributed by solid R&D team of highly qualified personnel with deep knowledge on food regulations in the export markets, together with continuous investment in global cooperation.
Along with local partners including domestic and international nutrition research institute cooperation, Vinamilk provides nutritional values that best fit the local market.
Since 1998, Vinamilk has recorded significant growth of export markets, exported product categories and SKUs. Overseas business currently accounts for 15 percent of Vinamilk’s total revenue.
With its business strategy and sustainable focus, Vinamilk grew steadily in the 1st half of 2021 despite COVID-19 challenges, boasting an export revenue of VND 2,772 billion (US$ 121.5 million), up 13.1% YoY.
Vinamilk continues to make significant investment for global expansion
Looking forward, Vinamilk aims further its global reach to serve more international markets. The company has announced a joint venture with Del Monte – a leading producer and distributor of F&B products in Philippines. The strategy to invest extensively in the dairy industry and offer Filipino consumers healthy dairy and beverage products that fit their tastes at reasonable prices. The joint venture’s products are expected to reach Filipino consumers in September 2021.
Vinamilk has three factories in the US, New Zealand, and Cambodia and a dairy farm complex in Laos. The first constructional phase of the farm complex which has a capacity of 8,000 cow heads that produces approximately 44,000 tons of milk each year, is expected to be put into operation in the 1st quarter of 2022.
About Vinamilk
Founded in 1976, Vinamilk currently owns 16 factories and 13 farms in Vietnam and overseas. The company possesses strong R&D competencies with highly competent human resources and well-equipped, modern laboratories with VILAS — ISO/IEC 17025 certification.