Vinacafé and Trung Nguyen compete for VN’s top instant coffee brand
Vinacafé and Trung Nguyen compete for VN’s top instant coffee brand
VietNamNet Bridge - Vinacafé Bien Hoa recently announced that it was the No.1 instant coffee producer in Vietnam with 41% of the market share, followed by Nestle with 26.3%, Trung Nguyen 16% and Tran Quang 15.3%.
Vinacafé Bien Hoa said these figures were the results of a survey conducted by market research firm Nielsen Vietnam. It was based on the output of instant coffee sold in 2014 through from data of retail services in urban areas (36 cities, including traditional and modern distribution channels, not including Co.opmart, Metro) and rural areas.
However, Ms. Tran Le Thanh Van, Head of Communications and Marketing Division of Nielsen Vietnam said the data was given by Vinacafé Bien Hoa and that Nielsen had never made a public announcement of the official results.
Van said Vinacafé Bien Hoa and Nielsen had collaborated on research of the coffee market in Vietnam.
During the survey process, the two sides signed an agreement on not releasing any information of the research as it is related to the market share of other companies.
"The research results shown in the reports is confidential information between the two parties, we cannot confirm whether the results announced by Vinacafé are correct. We also do not understand why Vinacafé Bien Hoa disclosed the information," Van said.
The representative of Nielsen also said: "Vinacafé Bien Hoa’s arbitrary announcement of study results certainly affects the reputation of the other coffee companies because after the information was released, many companies asked why that information was put out."
Meanwhile, Trung Nguyen, the coffee company that is "temporarily" usurped by Vinacafé Bien Hoa, said: "The information does not reflect anything".
"If the research results based on the market without data from Co.opmart and Metro, whether the figures are correct or not and not to mention the research methodology, and information disclosure is incomplete ..." Trung Nguyen representative said.
"This does not affect the production and sales of Trung Nguyen because Trung Nguyen is still the number 1 in the instant coffee market in Vietnam," Trung Nguyen representative said.
Currently, Nielsen is working with Vinacafé Bien Hoa to confirm the incident. The two sides will conduct exchanges to make final conclusions.
Reportedly, in 2014, the growth rate of Vinacafé Bien Hoa is 30%, while the overall growth of instant coffee market is only 5%.
This firm said it had invested huge resources to develop distribution networks with more than 140,000 stores nationwide.
After-tax profits of the company last year were VND401 billion ($20 million), up 54% compared with 2013; total revenue reached VND3 trillion, basic earnings per share was at VND15,100.
