Nova Group to invest over $50m in baby formula production
Nova Group to invest over $50m in baby formula production
Nova Group and Ireland-based Kerry Group, a global supplier of infant formula ingredients, have signed an agreement to develop high-quality affordable milk formula in Europe for the Vietnamese market.
Nova, which has interests in real estate, veterinary medicines, and food, will invest over US$50 million in developing modern dairy cattle farms in Ireland and product distribution systems, Nguyen Hieu Liem, its vice chairman, said.
The two will also focus on developing a system for tracing product origins - from raw materials to final product - to ensure their best quality and the absolute safety of children, he said.
Vo Thuy Anh, CEO of Anova Milk Joint Stock Company, an affiliate of Nova, said the two sides would inaugurate the Anka product line for children in late March or early April before beginning research to develop other nutritional products for the Vietnamese market.
Anka milk products would be of high quality but 20 per cent cheaper than similar products in the market, she said.
"As one of the global suppliers of infant formula ingredients for established multinational brands, we are delighted to play a key role in delivering nutritious milk to infants in Viet Nam through this partnership," Edmond Scanlon, president of Kerry Group in the Asia-Pacific region, said.
Kerry has invested 100 million euro (over $125 million) in its Global Nutrition Application Centre with over 800 scientists and nutritionists to support ongoing research and development of infant and follow-on formula for growing infants, he said.
Milk consumption in Viet Nam is lower than global levels, offering dairy investors great potential, the two sides said.
