Del Monte Pacific, via its subsidiary Del Monte Philippines (DMPI), has entered a 50:50 joint venture with regional dairy company Vietnam Dairy Products JSC (Vinamilk) to expand into the dairy sector in the Philippines.
The joint venture will import dairy products from Vinamilk and market and distribute them in the Philippines via DMPI, Del Monte Pacific said in a filing to SGX Monday.
“The Philippines has the second largest population in Southeast Asia and a relatively low per capita consumption of dairy products,” the statement said. “The joint venture provides an opportunity for growth in the domestic dairy industry as Vinamilk expands into a new consumer market, and as Del Monte expands its footprint into a new category regularly consumed in Filipino households on a daily basis.”
The joint venture will co-brand its products.
Vinamilk is one of the top-40 largest dairy companies globally, ranked 36th by revenue after posting US$2.6 billion in sales in 2020, the statement said, adding the company is Vietnam’s largest listed food and beverage company with a market capitalisation of US$9 billion.
The Vietnamese company has 13 dairy farms, a herd of nearly 160,000 cattle, 13 factories and more than 250 products.
Del Monte Philippines (DMPI) is a producer and distributor of food and beverage products, including ready-to-drink juices.