A Phuc Long Kiosk is set up at a Vinmart store in Ho Chi Minh City. (Photo: MSN) Hanoi (VNA) – The Sherpa Company Limited, asubsidiary of Masan Group Corporation, has acquired a 20-percent stake in PhucLong Heritage JSC, which owns one of the leading tea and coffee brands inVietnam – Phuc Long, for 15 million USD, according to an announcement.
As part of the deal, the Masan Group-owned retailerVinCommerce, which runs the country’s largest supermarket chain VinMart and theminimart chain VinMart+, has entered into a strategic cooperation agreementwith Phuc Long.
Accordingly, both sides will jointly develop ‘Phuc LongKiosks’ at more than 2,200 VinMart stores nationwide.
'Phuc Long Kiosks' are expected to bring fresh and delicioustea and coffee drinks to Vietnamese consumers, and help convert the VinMartstores into a destination that satisfies the daily essential needs of consumersof all ages.
Vietnam’s tea and coffee market is valued at 2.3 billion USDand expected to grow by more than 10 percent a year, according to VinCommerce.But branded tea and coffee retail chains, including popular brands such asHighlands Coffee (over 300 stores), The Coffee House (over 150 stores) andStarbucks (over 70 stores), only account for 25 percent of the market.
Given a young consumer base that aspires for innovativeproducts and services, both Masan and Phuc Long believe that branded tea andcoffee chains will boom in the next decade.
In the last three months, four pilot kiosks have beenopened in Ho Chi Minh City and 1,000 others will be set up in the next 18-24months.
Lam Boi Minh, founder of Phuc Long Heritage, said he believesthat “by partnering with Masan, Phuc Long will unlock the next phase of growthand continue to offer Vietnamese consumers high-quality products and delightfulexperiences in enjoying tea and coffee while making Phuc Long along-lasting brand for many generations.”
CEO of VinCommerce Truong Cong Thang, for his part, said:“With the goal of serving daily essential products that meet ‘The Very Best ofFresh’ standards, we believe that each VinMart store will transform into asymbol of modern lifestyle, a destination for all ages, from youths tohousewives, across Vietnam.”
“At the same time this partnership also helps speed upMasan’s strategy to develop the Point of Life consumer ecosystem.”
Under the agreement with VinCommerce, Phuc Long Kioskwill share 20 percent of its revenues with VinMart .
If the results of the trial are an indication, thepartnership will increase the profit margin for VinMart by more than 4 percent./.
