Asia Food & Beverages Report (May/June 2021 issue)

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Company NewsVIETNAMMILKINDONESIAINSTANT NOODLESVinamilk is Top Milk Producer inVietnam, and 36 th largest milkproducer globallyAccording to Nielsen Vietnam, Vinamilk is thetop producer of liquid milk in the Vietnamesemarket for 3 consecutive years from February2018 to January 2021 i.e. during both pre andpost-covid pandemic outbreak period.In Vietnam, liquid milk and powdered milkare the 2 largest segments within the domesticdairy industry. Vinamilk is leading in both thesesegments.Vinamilk boasts of nearly 250 types of productsin its portfolio and these include 50 types ofliquid milk that meet the nutritional needs of itsconsumers of varying demographies. Vinamilkwill continue to focus on diversifying its liquidmilk products in order to cater to consumersof different age groups and segments, whiledeveloping premium products selectively.Vinamilk also has a robust R&D departmentthat continues to develop new products -looking at newer flavors, low sugar, nutritionalaspects as well as better packaging.Vinamilk will also continue to develop its dairyfarms with world-leading quality standards andincrease farm sizes so as to proactively securefresh and nutritious sources with exceptionalquality. This is one factor that boost Vinamilk’scompetitiveness in the market. The 13 farmsmanaged by Vinamilk can sufficiently producemore than 1 million litres of raw milk daily.Vinamilk also boasts a nationwide distributionnetwork of 240,000 traditional retail outlets andanother 7,800 modern outlets in the country.Its ecommerce www.giacmosuaviet.com.vnis also proving to be useful particularly duringthe acute COVID-19 outbreak period whichrequired social distancing measures.Meanwhile, in global standing, Vietnam hasmoved up from 42 nd to 36 th position in the Top50 Dairy Product Processors in terms of salesrevenue. The global ranking was conducted byUK-based Plimsoll Publishing Ltd. Vinamilk isthe only dairy producer in ASEAN to enter theTop 50 ranking. It reported sales revenue ofDong 59.7 trillion (US$2.6 billion) in 2020.In recent years, Vinamilk has launched aseries of innovative products from high-gradeVinamilk Green Farm fresh milk, a productmade of fresh milk sourced at Vinamilks GreenFarm; Vinamilk UHT fresh milk with Bird’s Nest;and Vinamilk Fruit Love.Vinamilk has also been among the Top 3 mostchosen fast-moving consumer goods (FMCG)brand owners in both urban and rural areas forthe 8 th consecutive year, according to KantarWorldpanels Asia Brand Footprint 2020.BEERHanoi Beer sees dwindling earningsto a record 10-year lowBeer is one of the worst-hit category of foodand beverage products during the pandemic.Hanoi Beer Alcohol and Beverage JSC(Habeco), the producer of Hanoi Beer isprojecting its sales to be badly affected by thepandemic this year, and its profits to slump to arecord 10-year low.Habeco estimated its post-tax profits in 2021to reach Dong 255 billion (US$11 million), a59% drop from 2020.Beer drinking is closely associated withtourism in Vietnam and as hotels, restaurantsand food services continue to suffer during thepandemic, so will be the sales of beer.In addition, the situation is further exacerbatedby rising competition with many brewers in thecountry, and the rapid introduction of new beerproducts.Habeco is striving to maintain its leadingposition in the northern and central region ofthe country.Indomie now the world’s largest Instant Noodle brand/producerIn 1956, eight years after Japan’s defeat in World War 2 when food was still rationed, entrepreneurMomofuku Ando invented noodles that lasted for months by steaming them in chicken broth andthen dehydrating them by flash-frying them in oil. This has led to the creation of the first instantnoodle (ramen). Ando also founded Nissin Foods in 1958.In 1971, Ando started to place his instant noodles in a styrofoam cup which resulted in the ultimateconvenience where a consumer basically just needs to open the lid, add hot water and wait a fewminutes before eating. This led to the birth of the Cup Noodles.In the following year (1972), the Salim Group, one of Indonesia’s largest conglomerates, launchedthe instant noodle brand Indomie. Following the footsteps of its Japanese predecessor, there wasonly one flavour launched, ‘Kaldu Ayam’ or Chicken Flavor. Nobody in Indonesia expects Indomieto be successful as Indonesians were not a wheat or noodle-eating nation, and predominantly arice-eating nation. Nevertheless, as the price of instant noodle was affordable, it grew in popularity.A decade later in 1982, a new flavor/variant ‘Mi Goreng’ (or fried noodle) was launched byIndomie and this had also become popular throughout Southeast Asia. It was not long beforeIndomie launched other flavors in the market. Mi Goreng however remains the country bestseller.Fast forward, Indonesia is now the 2 nd largest instant noodle consuming nation in the worldjust behind China. World Instant Noodles Association showed that Indonesians consumed 12.64million servings of instant noodles compared to 46.35 million in China/Hong Kong in 2020.The reason for Indomie success was attributed to the existing demography in Indonesia. Thereare millions of Indonesians working under minimum wages and ‘instant noodles’ seemed to be theonly food which they could afford to consume most of the time. Instant noodle consumption wasgiven a further lift recently during the pandemic as Indonesians were locked down at home therebystocking ‘non-perishable’ instant noodles for a convenient meal.Presently, Indomie has 72% share of the market and it reported impressive sales of US$2.34billion for the first 9 months of 2020.Indomie (Indofood) has now eclipsed Ando’s company, Nissin Foods, to become the largestinstant noodle maker in the world and the 10 th most-chosen consumer brand in the world,according to Brand FootPrint. It has successfully exported to more than 60 countries in Asia, Africa,the Americas and the Middle East. Indomie also has a manufacturing plant in Nigeria, where MiGoreng has become part of the country’s culinary culture. From Nigeria, Indomie is exported toEurope and the rest of Africa .Indomie, operated under PT Indofood Sukses Makur, owned by the Salim Group, continuesto innovate by creating a variety of flavors that meet consumers craving. In 2011, when a CNNsurvey named Beef Rendang as the most delicious food in the world in 2011, Indomie immediatelyresponded by releasing instant noodle products with rendang flavour. This strategy of reaching outto its consumers is the key for Indomie to find a place in the hearts of new generations of noodleeaters.MALAYSIALeong Hup to see higher revenue from Poultry in 2021CHINAPOULTRYMalaysia-based poultry supplier, Leong Hup International Bhd is forecasting strong revenuegrowth this year led by rising demand as well as higher prices of poultry in both Malaysia andIndonesia, its major markets.Poultry demand is increasing gradually alongside gradual easing of social-distancing measuresacross Leong Hup’s regional operations. Other than Malaysia and Indonesia, the poultry companyalso has presence in Singapore, Vietnam and Philippines.During the 1 st quarter 2021, its earnings grew 222.8% from the previous year.Based on geographical segmentation, Indonesia remains its largest market contributingRM613.68 million (US$148.2 milion) or 36.6% to Leong Hup’s total revenue in the period. Thisis followed by Malaysia with RM443.33 million (US$107 million); Vietnam with RM385.1 million(US$92.95 million), and Singapore and the Philippines with RM189.87 million (US$45.83 million)and RM44.57 million (US$10.76 million) respectively.Leong Hup ED and group CEO Tan Sri Francis Lau Tuang Nguang said the group is on course tostage a recovery on the back of solid top-line growth, underpinned by continuous volume expansionand vigilance in cost management. He added, “While COVID-19 and other exogenous factors willcontinue to pose uncertainty and pressure on our business, we are encouraged to see traction withthe strategies undertaken since last year.”The group also has ample liquidity for its operations, and it is in a good position to capture futureopportunities.NON-CARBONATED DRINKS (GENERAL)Goldman Sachs predict Nongfu Spring to become a Beverage GiantMajor water bottler and beverage producer, Nongfu Spring might soon emerge as a beveragegiant in China, according to prediction made by Goldman Sachs (GS).GS expects Nongfu Spring’s sales to grow by 17% CAGR over 2020-2025, boosted by risingmarket share of its bottled water business and other beverage segments such as tea.The company has also started to expand into lower-tier cities by opening stores and setting upvending machines. Nongfu Spring’s sales should pick up as outdoor activities resume in Chinaduring the summer months.Presently, Nongfu is China’s largest bottled water producer and is a Top 3 producer for bottledtea and juice.Zhong Shanshan, the Founder of Nongfu Spring is recently ranked by Forbes to be the richestman in China and the world’s 6 th wealthiest with a net worth of US$68.5 billion.Asia Food & Beverages 18
Import-Export NewsGLOBALOmniPork gearing up for US launchPLANT-BASED MEATHong Kong-based Green Monday Group is planning a nationwide launch of its plant-basedpork, OmniPork to the US market in later part of 2021.Earlier OmniPork debuted at selected restaurants with a full-scale foodservice and retail launchslated by the end of this year. In the US, OmniPork will find its greatest versatility in Asianinspiredmenus instead of western food. There is a strong interest in Asian food and cuisines inthe country.As such, the foodservice launch will focus on the application of OmniPork in international Asianrestaurants that serve Japanese, Korean, Chinese, Vietnamese and Thai cuisines throughout theUS. According to a company spokesperson, “As OmniPork has a bland flavor, it is versatile andyou can add Thai or Sichuan Spices or other umamis to bring up the flavor of the Asian cuisines.”For the retail launch, the first SKUs will be pork grounds, strips and luncheon meat, but OmniPorkis also considering to add Ready Meals via contract manufacturing like dumplings and dim sumsat a later stage. Demand for ready meals is growing rapidly in the US due to the pandemic.VIETNAMVinasoy ‘Fami’ soymilk now sold in China and JapanSOYBEAN MILKFami brand of soymilk produced by Vietnam Soya Products Company (Vinasoy) has recentlybeen launched at supermarkets in China and Japan. Vinasoy is an affiliate of Quang Ngai SugarJSC (QNS), a leading sugar producer in Vietnam by market valueIn China, Fami soymilk is now sold on 11 leading ecommerce platforms like Tmall, TmallGlobal, 1688, Taobao, JD, Ping Duo Duo and others. Fami has also appeared in 13 supermarketchains and 1 convenience store chain in China. Fami has already been distributed in the denselypopulated East China region with presence at Hema Shanghai supermarket chain, a majorretailer in this region.In Japan, Vinasoy’ products have been distributed in almost all parts of the country, withpresence in nearly 1,000 stores and supermarkets in 45 out of 47 prefectures.By successfully exporting and expanding in major Asian markets like China and Japan, Vinasoyhas proven itself to be the No.1 supplier of soybean nutrition in Vietnam. Vinasoy is now all setto expand its market beyond Vietnam, China and Japan. It is now eyeing to penetrate the USmarket by the 3 rd quarter of 2021 followed by South Korea, Middle East and the rest of Asia.Import-Export NewsPHILIPPINESPhilippines’ famous CavendishBananas to reach Australian soilsoonFRUITSThe Philippines has renewed its push for marketaccess in Australia for its famous CavendishBananas as well as the termination of the antidumpingmeasure on its canned pineapples.The Department of Trade and Industry (DTI)said the request for market access to Australiafor fresh Cavendish bananas was raised duringhigh-level ministerial meeting between the 2countries in late April.DTI spokesperson commented that “Whilethe Philippines lauded the first ever shipmentof frozen durian from Davao to Australia, itreiterated its interest for the grant of marketaccess by Australia for fresh Cavendish bananasas top priority, with durian and dragon fruit alsosubsequently lined up for consideration.”During the dialogue, the Philippines alsorequested for the removal of the anti-dumpingmeasure imposed on Philippine cannedpineapples.Australia said it will work with the Philippinegovernment and exporters in addressing therequests. The Australian government alsoproposed to work with Philippine agenciesDTI, Department of Budget and Management,Department of Foreign Affairs, and Anti-Red TapeAuthority in promoting opportunities for strongertrade and investment ties.19 Asia Food & Beverages
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