South Korea's Orion Corporation has entered into a strategic partnership with Thailand's dairy behemoth, Dutch Mill Co., to expand into Vietnam's booming dairy market. The partnership was solidified last December when Orion Food Vina wrapped up an exclusive deal to sell Dutch Mill's products in Vietnam.
Orion Food Vina was the biggest confectionary manufacturer in Vietnam in 2022, and so to take advantage of this strength, the company sees expanding its sales channel for Dutch Mill products at supermarkets, grocery stores, and convenience stores nationwide as the best next step.
Dutch Mill has dominated the Thai market since 1984, holding 70 per cent of the market share there, and exports its products to 20 countries. A fertile market with a young population like Vietnam is key to a company with an aim of becoming the number one dairy enterprise in Southeast Asia,
Two flagship brands, 'Proyo!' and 'Choco IQ', will be introduced to Vietnamese consumers later this month. Choco IQ is a chocolate-flavoured barley milk inspired by ChocoPie, while ProYo! is a yogurt drink containing 52 per cent naturally fermented yogurt with real fruit juice.
An Orion spokesperson said, "Armed with a robust sales strategy, we're poised to rapidly establish a foothold and aim to cement our position as the premier food enterprise in the region."
The Vietnamese dairy market was valued at $5.32 billion in 2021, with further growth expected. There are over 1.5 million new babies born each year in Vietnam, with a growing need for dairy products of superior quality.
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