Vinamilk forms joint venture with Del Monte in Philippines hinh anh 1The logo of Vinamilk-Del Monte joint venture  has been unveiled. (Photo: VNA)

Hanoi (VNA) – Vietnam Dairy Products Joint Stock Company (Vinamilk) said on August 17 that it has forged an alliance with Del Monte Philippines Inc (DMPI), a subsidiary of Del Monte Pacific Limited.

Total investment capital for the first phase is 6 million USD, in which, Vinamilk and its partners contribute 50 percent each.

The joint venture will import dairy products from Vinamilk, and market and distribute them in the Philippines through DMPI. It will use the co-brand Del Monte-Vinamilk for its products and promote the brand strength of both businesses. The joint venture will take advantage of Vinamilk’s strength in production and Del Monte in distribution.

Despite facing difficulties due to the application of social distancing, Vinamilk completed production of the first shipment for the joint venture at the end of July.

The joint venture's products are expected to officially reach Filipino consumers in September. Revenue of the joint venture in the first year is estimated at around 8.8 million USD and has the potential for double digit growth of about 50 percent a year in the medium term.

Vinamilk forms joint venture with Del Monte in Philippines hinh anh 2A modern production line at a factory of Vinamilk. (Photo: VNA)

Vinamilk is among the top 40 largest dairy companies in the world. Its products have been exported to 56 countries including the United States, Japan, the Republic of Korea, and the Association of Southeast Asian Nations (ASEAN).

Vinamilk has three factories in the US, New Zealand, and Cambodia and a dairy farm complex in Laos. Overseas business currently accounts for 15 percent of Vinamilk's total revenue.

DMPI is a producer and distributor of healthy food and beverages including ready-to-drink pineapple juice. It has been operating for more than 95 years in the Philippines

Del Monte Pacific Limited is a company listed on the Singapore Stock Exchange and the Philippine Stock Exchange. It indirectly owns 87 percent of DMPI./.