Last update: 11:00 | 12/09/2017
VietNamNet Bridge - Two years ago, the public was intrigued with the biggest deal in the history of Vietnam’s confectionery industry when Mondelēz International announced its M&A deal with Kinh Do snack business.
The success story of Mondelez Kinh Do after milestone snacking deal
Visitors to a production line of Mondelez Kinh Do Vietnam
For the confectionery business, the deal was indeed a game-changer, as Mondelez Kinh Do’s diverse product range is now available across Vietnam, with its factories boosting their capacities to export to other ASEAN countries, China, and Japan.
Thanks to snack market’s sturdy growth, Mondelez Kinh Do is expanding beyond expectation. The firm has gained a nearly two-percentage-point share in biscuits and cakes since combining the two businesses.
Strategy is the key to success after the M&A of Modelez Kinh Do. Realizing Kinh Do’s quality products and strong distribution, Mondelez Kinh Do combined the best of both: the distribution advantage of Kinh Do with the sales and marketing know-how of Mondelez. This allows the firm to grow both in modern and general trade with the best portfolio in the industry.
Setting the priority of growing its reputation, and ensuring quality and food safety in line with Mondelēz International’s standards, Mondelez Kinh Do has invested significantly to upgrade its two factories, as well as the safety of workers.
As a result, the two factories have passed various internal audits with good rating and have received an ISO certification for world class safety and quality, while the new workshop in Hung Yen was certified as a Halal “A” production line.
With the aim of having the best people in the industry, the company offers its employees “The Power of Big and Small”: the resources and the discipline of a global organization combined with the speed and agility of a local business.
Employees can grow and contribute to the success of both leading domestic and international brands, as well as have career opportunities outside Vietnam.
Keeping up the strong momentum
Diverse portfolio of Mondelez Kinh Do
With Vietnam’s demography and population, and the country’s connection with other ASEAN markets, the robust growth of Mondelez Kinh Do in the future is predictable.
The company is targeting the daily consumption of nutritional snacks that busy consumers can enjoy while having coffee, traveling, or at their workplace.It has also expanded into luxury segment with LU cookies, a premium gifting option to serve local high demand for Tet gifting.
Acquiring theleading mooncake brand in Vietnam, Mondelez continues innovating to offer local consumers the largest portfolio with the highest quality.
This year, the new Oreo mooncake is launched beside its traditional range to attract more consumers, with the perfect combination of Mondelēz International biggest brand with the know-how and experience of Kinh Do. Mondelez Kinh Do’s mooncakes are also exported to markets such as China and the USA.
Having a diverse portfolio of both local and global leading brands such as Kinh Do mooncakes and biscuits, Cosy, Solite, AFC, Oreo, Slide, Ritz, LU, Cadbury and Toblerone chocolate available in 300,000 outlets across Vietnam, the company still aims to accelerate the business and reach more customers by supporting the distributors and retailers with strong programs.
Oreo mooncake – the perfect combination of Mondelēz International biggest brand with the know-how and experience of Kinh Do.
“In our first two years, we posted a gain of nearly two percentage points in our market share in Vietnam in biscuits and cakes,” said Stephane Gripon, Mondelez Kinh Do Vietnam JSC’s Managing Director.
“To keep the momentum, we will continue to make our business stronger and to expand our portfolio of local and international brands. Our aim is to become the best snacking company in Vietnam. That means growing our business, growing our people and growing our reputation and impact,” he said.
Aiming to create positive impact for the local communities, thecompany is setting up the foundations of a long-term business through CSR initiatives. For instance, itsfirst Joy Schools in Vietnam focuses on enhancing nutritional habits and promoting an active lifestyle for primary students.
In addition, according to Hung Yen Department of Taxation, North Kinh Do (a member of Mondelez Kinh Do) is in the top 3 foreign enterprises that have been contributed significantly to the province, with 167,3 billion taxes paid.
The company was recently honored to receive the certificate of merit from Hung Yen Tax Department and Hung Yen People's Committee.