Vinamilk (VNM) and Kido joint venture disbanded
Vibev, an ice cream and non-alcoholic beverage company owned by Vinamilk (51 per cent) and Kido (49 per cent), has announced its dissolution after more than two years.
Vietnam Dairy Products JSC (Vinamilk) and Kido Group JSC have just announced the suspension and dissolution of the joint venture Vibev.
Vinamilk said the Vinamilk – Kido Beverage Joint Venture Company (Vibev) was terminated because of certain changes in the development perspective of both parties. Kido's side added that unpredictable changes in the domestic market and global economy were also a factor.
Vibev registered its establishment in March 2021 and started out with an investment of $17.4 million. Vinamilk contributed $8.9 million as the controlling power, while Kido gave $8.5 million.
Mai Kieu Lien, CEO of Vinamilk, said then that the collaboration stemmed from the two companies seizing mutually beneficial opportunities. Both had the capacity in manufacturing plants, product research and development, business administration and management, and strong financial resources, so they would bring common areas into the joint venture to avoid conflicts of interest.
Mai Xuan Tram, deputy general director of Kido and CEO of Vibev, had said that the two sides studied for a long time before shaking hands. He assessed this industry has great potential and scale, not only in the country but also in the world. Vinamilk’s export network in 30 countries will support bringing the joint venture’s products abroad.
After many delays due to the pandemic, Vibev launched its first product in November 2021 with many ambitions, such as holding the number one position in market share in the freshwater industry and reaching an output of 150 million bottles a year, equivalent to sales of$87 million) after five years of operation.