After five years of selling its snack business to Mondelez, KDC is making its comeback and resurrects its snack business under the KIDO brand this year, rolling out its first moon cakes in the third quarter of 2020.
|KDC will officially kickstart its snack business in the third quarter of 2020 |
KDC sets the lofty goal of becoming the second biggest player in the market trailing behind Mondelez in the next two years. The firm pins its hopes on its 20 years of experience in the snack industry alongside its use of modern technology, human resources, and extensive distribution networks.
Accordingly, KDC leaders are expecting the firm to shine when it is resuming the snack business. The company wants to focus on developing gift products for national holidays like Mid-Autumn Festival and the Lunar New Year.
Meanwhile, the snack market has undergone massive changes in the past five years with a rapid development of the gift segment and an apparent rising demand for snack consumption from the middle-aged to elderly people.
In order to cash in on this rising demand, KDC will return to its snack and confectionery segment to capitalize on the potential market worth VND51 trillion ($2.2 billion) with its best-selling products under the KIDO brand.
For 2020, the snack maker plans to also boost its frozen and dried food products to achieve total net sales of around VND8.2 trillion ($353 million) and before-tax profits of VND330 billion ($14.15 million), possibly reaching an increase of 14 per cent and 17 per cent, respectively, against last year.
In the dried food segment, the company will make efficient use of its distribution channels and marketing activities, focusing on diversifying its product portfolio and improving its customer accessibility. In the frozen food segment, KDC will focus on developing high-end products as well as diversifying its product lines to meet the evolving demand of customers, especially younger ones.
In addition, the company co-operates with Vinamilk to develop beverages and ice cream products under KDC's KIDO brand. The related joint venture called Vinamilk-KIDO Beverage Company aims at manufacturing and trading beverages including healthy drinks and tea alongside ice cream and frozen food.