Competition heats up in domestic confectionery market
KIDO Group transferred its confectionery business to a foreign partner with a commitment to not participate in the sector for five years. After a six-year absence, it officially returned to the confectionery industry in October 2021. After heavy investment in the KIDO Bakery brand, the company now aims to be the No. 2 position in the bakery industry in Việt Nam within the next three to five years.
KIDO this year is targeting its highest pre-tax profit since 2017. Accordingly, the company has set a net revenue goal of VNĐ15 trillion and a pre-tax profit of VNĐ900 billion for 2023, up 20 per cent and 76 per cent respectively compared to the previous year.
KIDO also carried out a strategy to restructure the business this year into four sub-groups focussing on cooking oil, ice cream, confectionery and fish sauce.
A KIDO's bakery in Hà Nội. KIDO this year targets its highest pre-tax profit since 2017, around VNĐ900 billion. Photo baotintuc.vn |
According to Trần Lệ Nguyên, general director of KIDO, the step is to create conditions for the company to link with multinational companies in each segment. KIDO's products will not be only consumed domestically but also exported, which will help improve the company’s profit margins. If the price of raw materials is stable, the profit will increase even more.
KIDO’s board of directors has also submitted a plan to shareholders for approval to reduce the rate of special dividend in 2022 to 10 per cent in cash, instead of 50 per cent as previously approved. KIDO said the dividend reduction is based on the reality on the ground as well as new investment plans this year. KIDO has recently completed the acquisition of a 25 per cent stake in the Thọ Phát Dumplings brand and plans to increase its ownership of Hùng Vương Plaza to 76 per cent.
According to the latest data from market research company Euromonitor, KIDO is currently the market leader in the ice cream industry with a share of 44.5 per cent, of which the Merino brand accounts for 24.2 per cent and the Celano brand accounts for 19.2 per cent.
KIDO is also leading the margarine industry in Việt Nam with a market share of 74.9 per cent and ranks second in cooking oil with about 30 per cent of the market share.
PAN Group is another top confectionary brand in the country. At its annual general meeting of shareholders, Nguyễn Duy Hưng, chairman of PAN Group’s board of directors, said the business plans of each member company and PAN Group itself have been developed under careful guidance.
Specifically, PAN Group’s consolidated revenue and profit in 2023 will increase by 8 to 9 per cent compared to 2022 to more than VNĐ15.15 trillion and VNĐ991 billion.
PAN Group’s leaders have identified food and confectionery as its core business segments with a revenue growth of 15 per cent thanks to the gradual recovery of domestic demand. Pre-tax profits from the company’s core business activities are expected to double over 2022 (excluding extraordinary profits from plant transfer transactions).
PAN Group is considered a big player in the country’s agriculture, fishery, and confectionery industries with many big brands under its control. In particular, in the confectionery segment, it completed the acquisition of the famous Bibica in the middle of last year with ownership increasing to 98.3 per cent.
Besides KIDO and PAN Group, the country’s confectionery market also has the participation of other big names such as Mondelez Kinh Đô (UK), Orion (Korea), and domestic brands such as Hữu Nghị and Hải Hà.
The race of big names in the confectionery industry is not only happening in the domestic market that has an average growth rate of only 5 to 8 per cent a year. For faster growth, many companies choose to find new markets through export.
Nguyễn Quốc Hoàng, general director of Bibica, told the company’s investor conference last year that this was not the time for Bibica to be on the defensive.
The statement of the head of Bibica, as well as the market developments and the targets of remaining domestic confectionery companies, show giants in the local confectionery industry are considering long-term and sustainable plans to export.
See also
HCM City's real estate market witnesses recovery
11:20 | 15/10/2024 Domestic market
Vietnam looks for ways to spark domestic consumer demand
16:11 | 22/09/2024 Domestic market
Removing bottlenecks for domestic petroleum market
14:31 | 19/09/2024 Domestic market
City Sale to bring together 500 domestic and global brands with big discounts
15:17 | 03/09/2024 Domestic market
Used car market sees robust recovery: report
16:13 | 02/08/2024 Domestic market
Vietnam’s e-commerce market size to hit US$30 billion this year
09:34 | 30/07/2024 Domestic market
See more news
Domestic enterprises make imprints on real estate M&A market
11:26 | 03/07/2024 Domestic market
E-commerce industry on road to meeting US$35 billion revenue target in 2025
16:48 | 11/06/2024 Domestic market
Real estate market picking up
14:43 | 10/06/2024 Domestic market
Flying could become cheap again as authorities vow to reduce taxes
07:00 | 21/05/2024 Domestic market
Real estate market in the South picking up
06:00 | 10/05/2024 Domestic market
Cooperatives seek to expand sales to e-commerce
10:55 | 22/04/2024 Domestic market
Real estate market has positive performances in Q1: VARS
10:07 | 17/04/2024 Domestic market
PM demands strengthened gold market management
17:04 | 12/04/2024 Domestic market
Domestic coffee prices at record high
06:00 | 16/03/2024 Domestic market
Difficulties in sales of OCOP products
06:05 | 10/03/2024 Domestic market
Garment makers pin hopes on coming year-end shopping season
17:04 | 14/11/2024 Economy
Viettel launches the world’s first O-RAN 5G Network
16:59 | 14/11/2024 Science - Technology
Quảng Ninh to attract more foreign tourists by year-end
16:52 | 14/11/2024 Tourism
Seminar helps fashion businesses identify future consumers
16:47 | 14/11/2024 Culture
Ample opportunities await Vietnamese exporters in South Asia: Workshop
16:20 | 14/11/2024 Economy
Multimedia
Vietnam actively contributes to APEC
08:59 | 14/11/2024 Infographic
Vietnam’s national brand value reaches 507 billion USD in 2024
17:06 | 11/11/2024 Infographic
Vietnam-Chile Comprehensive Partnership
09:51 | 10/11/2024 Infographic
Vietnam manufacturing returns to expansion
13:31 | 09/11/2024 Infographic
Vietnam's key contributions to ACMECS
11:02 | 07/11/2024 Infographic
PM urged parliament to pass legislation to ensure sufficient electricity, restart nuclear projects
09:47 | 13/11/2024 Policy
New policy drafted to help non-bank credit institutions develop further
17:13 | 12/11/2024 Policy
Việt Nam to stiffen regulations on violating social network platforms
16:23 | 12/11/2024 Policy
Party leader of Việt Nam holds phone talks with President-elect of US
08:55 | 12/11/2024 Policy
Foreign investors expand chip packaging footprint in Viet Nam
16:17 | 14/11/2024 Industry
Construction material industry's revenue to reach 47 billion USD
11:40 | 13/11/2024 Industry
Footwear industry eyes UKVFTA to bolster exports
10:00 | 11/11/2024 Industry
North-South express railway – driving force to spawn new support industries
17:09 | 08/11/2024 Support industries
Bac Giang prioritises high-tech FDI projects, services industry
17:04 | 12/11/2024 FDI
Vietnam draws new wave of high-value investments: Savills
19:30 | 10/11/2024 Investment
Hanoi attracts 1.6 billion USD in FDI in ten months
15:18 | 07/11/2024 Investment
Foxconn to invest US$80 million in Bắc Giang for chip manufacturing expansion
16:16 | 04/11/2024 Investment
UK stands ready to help Vietnam build international financial hub
17:13 | 13/11/2024 Finance-Banking
S&P affirms Techcombank’s BB- rating
10:10 | 11/11/2024 Finance-Banking
Tax sector fulfils nearly 95% of state budget collection target
15:38 | 09/11/2024 Finance-Banking
Việt Nam's stock market moves closer to emerging market status amid key policy changes
18:05 | 06/11/2024 Stock Market
Hà Nội requires comprehensive emission data to develop effective air pollution control plan
15:03 | 14/11/2024 Environment
Vietnam looks towards Net Zero goal in agriculture
17:25 | 12/11/2024 Environment
Holistic approach needed to improve glass recycling
11:31 | 12/11/2024 Environment
Storm Toraji intensifies and moves northwest in East Sea
08:58 | 12/11/2024 Environment
Viettel launches the world’s first O-RAN 5G Network
16:59 | 14/11/2024 Science - Technology
4G mobile network coverage reaches 99% of Vietnamese population: Minister
16:51 | 13/11/2024 Science - Technology
Quang Ninh to host 3rd Vietnam Int'l Digital Week next week
17:11 | 12/11/2024 Science - Technology
Việt Nam's new fast track policies to boost high-tech investment environment set for approval
09:33 | 09/11/2024 Science - Technology
Night flights added at six airports to meet rising travel demand during Tet
15:12 | 14/11/2024 Society
Vietnamese universities strive to attract international students
11:43 | 13/11/2024 Society
Social network users must authenticate accounts from December 25
17:10 | 12/11/2024 Society
Long Thanh Airport’s runways expected to be completed three months ahead of schedule
15:57 | 12/11/2024 Society
Hà Nội to host large-scale international fair for key industrial products in 2025
16:54 | 12/11/2024 Vietnamese Brands
Agriculture, craft village festival to be held in Hà Nội
16:49 | 12/11/2024 Vietnamese Brands
Vietnamese Goods Week brings vibrant showcase to Thai province
10:16 | 08/11/2024 Vietnamese Brands
Sóc Trăng’s ST25 fragrant rice awarded 5-star OCOP rating
11:05 | 07/11/2024 Vietnamese Brands
Seminar helps fashion businesses identify future consumers
16:47 | 14/11/2024 Culture
Kiên Giang to host Khmer cultural festival
16:45 | 13/11/2024 Culture
Two Vietnamese artists nominated for Grammy Awards
17:02 | 12/11/2024 Culture
Great Solidarity of Ethnic Groups Week to take place next week
09:55 | 08/11/2024 Culture
Quảng Ninh to attract more foreign tourists by year-end
16:52 | 14/11/2024 Tourism
Vietnam promotes int’l cooperation in MICE tourism development
14:47 | 14/11/2024 Tourism
2025 Nha Trang – Khanh Hoa Sea Festival to spotlight cultural heritage space
17:04 | 13/11/2024 Tourism
Việt Nam to welcome more international cruise ship tourists
16:36 | 13/11/2024 Tourism