KIDO Group has signed an agreement with a partner to develop a retail store chain.
|Kido Group will launch a new retail store chain |
The project will have an initial investment capital of VND100 billion($4.35 million), 61 per cent of which will be held by Kido. Kido has yet to disclose further information about the chain besides the announcement on the Ho Chi Minh City Stock Exchange.
It is speculated that the new retail store chain will serve Kido’s ice cream and beverage businesses as Kido is holding the leading position in the ice cream market.
The company's 2020 annual report updated last month said that alongside key products such as ice cream and cooking oil, the group aims to create a product ecosystem built on two pillars, including essential food and frozen food with 450,000 and 120,000 points of sale nationwide, respectively. Accordingly, Kido will continue to monitor and quickly grasp market trends, research, and launch new products in line with new consumer trends.
Last year, Kido announced its return to the confectionery market, five years after the mergers and acquisitions deal with Mondelez International. The company plans to develop key product lines and make new venture like snacking, mid-autumn cakes, fresh cakes, and even coffee.
Meanwhile, Kido and Vinamilk have also set up the joint venture Vibev. The new venture will roll out healthy non-carbonated soft drinks to the market in 2021.
Kido is expected to achieve a net revenue of VND11.5 trillion ($500 million) and pre-tax profit of VND800 billion ($34.78 million) this year, up 38.2 and 91.5 per cent, respectively, compared to 2020.