A Phuc Long Kiosk is set up at a Vinmart store in Ho Chi Minh City. (Photo: MSN) Hanoi (VNA) – The Sherpa Company Limited, a subsidiary of Masan Group Corporation, has acquired a 20-percent stake in Phuc Long Heritage JSC, which owns one of the leading tea and coffee brands in Vietnam – Phuc Long, for 15 million USD, according to an announcement.
As part of the deal, the Masan Group-owned retailer VinCommerce, which runs the country’s largest supermarket chain VinMart and the minimart chain VinMart+, has entered into a strategic cooperation agreement with Phuc Long.
Accordingly, both sides will jointly develop ‘Phuc Long Kiosks’ at more than 2,200 VinMart stores nationwide.
'Phuc Long Kiosks' are expected to bring fresh and delicious tea and coffee drinks to Vietnamese consumers, and help convert the VinMart stores into a destination that satisfies the daily essential needs of consumers of all ages.
Vietnam’s tea and coffee market is valued at 2.3 billion USD and expected to grow by more than 10 percent a year, according to VinCommerce. But branded tea and coffee retail chains, including popular brands such as Highlands Coffee (over 300 stores), The Coffee House (over 150 stores) and Starbucks (over 70 stores), only account for 25 percent of the market.
Given a young consumer base that aspires for innovative products and services, both Masan and Phuc Long believe that branded tea and coffee chains will boom in the next decade.
In the last three months, four pilot kiosks have been opened in Ho Chi Minh City and 1,000 others will be set up in the next 18-24 months.
Lam Boi Minh, founder of Phuc Long Heritage, said he believes that “by partnering with Masan, Phuc Long will unlock the next phase of growth and continue to offer Vietnamese consumers high-quality products and delightful experiences in enjoying tea and coffee while making Phuc Long a long-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 of Fresh’ standards, we believe that each VinMart store will transform into a symbol of modern lifestyle, a destination for all ages, from youths to housewives, across Vietnam.”
“At the same time this partnership also helps speed up Masan’s strategy to develop the Point of Life consumer ecosystem.”
Under the agreement with VinCommerce, Phuc Long Kiosk will share 20 percent of its revenues with VinMart .
If the results of the trial are an indication, the partnership will increase the profit margin for VinMart by more than 4 percent./.
