Vietnamese dairy group Vinamilk aims to treble its sales in Thailand, stepping up distribution in the country over the next year.
A spokesperson for Vinamilk told just-food the company, which entered Thailand in June, is already distributed in “many supermarkets, modern retail stores chains”, including The Mall, Foodland and Lawson. “Vinamilk and our strategic partner will keep expanding distribution and until Q3/2017, our target is to be present at most of Thai modern channels and achieve the 200% growth rate in sales,” the spokesperson said. “Vinamilk is considering Thailand as one of key markets to invest more resources for further development.”
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Vinamilk has said it wants to grow its international presence and increase sales from neighbouring ASEAN countries. The company has identified Thailand as one of its strategic markets.
The Vinamilk spokesperson said the company’s products are also well-positioned to appeal to Thai consumers, which “share some similarities in insight and product preference with Vietnam” creating “favourable conditions for market entry”.
In particular, Vinamilk wants to expand in the spoonable yogurt category, which the spokesperson said “shows high growth potential”, up in the double digits for the past five years. Since its market entry in June, Vinamilk has operated in three main sub-categories – digestive yogurt, “yogurt for beauty” and children’s yogurt under the Susu brand.
In order to support growth, Vinamilk plans to raise investment behind its brands. “Vinamilk has taken the first steps to approach [the] Thai market and received good feedback for [the] yogurt category. In the next stage, Vinamilk plans to invest in marketing activities to boost the sales of yogurts with current and new[ly] launch brands, as well as keep exploring opportunities for other dairy categories,” the spokesperson revealed.
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By GlobalDataVinamilk imports the products it sells in Thailand. However, as it grows its Thai sales, the company will also consider developing local production. “In the near future, developing local production in Thailand is also our strategic direction. However, detailed timing must depend on business results and expanding distribution,” the spokesperson said.
