Vinamilk plans the opening of further Hi-Café stores this year, unimpressed by the recent downsizing of the Soya Garden chain, one of its competitors.
|The first Hi-Café store is located in District 7, Ho Chi Minh City |
While the beverage startup Soya Garden recently closed nearly 30 stores across the country due to the impact of COVID-19, local milk giant Vinamilk decided to set foot onto the risky sector. In a letter submitted at the 2020 shareholder meeting, Vinamilk’s management board introduced nine new business projects, including the expansion of the Hi-Café coffee chain that last year had seen one establishment in Ho Chi Minh City's District 7 so far.
“The store has been a prototype, and Vinamilk has been looking for suitable business methods for the chain including to partner up a fit partner operating in the same business,” the statement noted. “From 2020, Vinamilk plans to enlarge the chain in many places across the country.”
Moreover, the local milk firm will also run business lines in several other sectors, including nylon and recycled package and diet and diabetes sugar.
According to its business plan, Vinamilk targets VND59.6 trillion ($2.6 billion) in revenue and VND13 trillion ($565 million) this year, up 5.7 per cent and 1.6 per cent on-year, respectively. Additionally, the firm will pay dividends in two terms with a 30 per cent rate and the issuance of bonus shares at a 5:1 ratio. Its shareholder meeting is forecast to be organised on June 26.
Currently, the local market sees Highlands Coffees as the biggest chain with 336 stores. The next positions are The Coffee House with 150 stores, Trung Nguyen with 77 Legend stores and 253 E-Coffee stores, and finally Starbucks with 67 stores.