16:03 (GMT +7) - Saturday 15/12/2018

Business

KIDO & TTC shake hands in sugar distribution

Released at: 10:52, 14/12/2017

KIDO & TTC shake hands in sugar distribution

Photo: KIDO Group

Two sign a cooperation agreement over distribution of sugar around Vietnam.

The KIDO Group Corporation officially set foot into the sugar industry by signing a cooperation agreement with one of Vietnam’s leading sugar producers, the Thanh Thanh Cong Investment JSC (TTC).

KIDO will distribute the exclusive products of Bien Hoa Sugar through its 200 distributors around the country. Sales of sugar distributed via KIDO channels in 2018 are expected to reach about 60,000 tons, earning VND1.1 trillion ($48.4 million).

In the next phase, KIDO and TTC will cooperate in developing separate product lines and build their own brands.

TTC has been a major brand in the production and supply of sugar of Vietnam for many years with its Bien Hoa Sugar brand. The group owns nine sugar refineries in Vietnam central region, central highlands, and south, and Laos, with total production of 46,100 tons of sugarcane per day.

In May, the Thanh Thanh Cong Tay Ninh Sugarcane JSC (TTCS) and the Bien Hoa Sugar JSC (BHS), members of the TTC Group, officially completed their merger.

Post-merger, TTC has set a target for consolidated revenue of $368 million and consolidated pre-tax profit of $30 million for the 2017-2020 period, and expects the TTC Bien Hoa - Dong Nai Limited Company will reach targeted revenue of over $206.5 million and targeted pre-tax profit of $14 million in 2017-2018.

The strategic move will also contribute to the sustainable development of TTCS’s raw material area. It currently owns 25,000 ha of sugarcane area and BHS owns 15 ha, excluding the large sugarcane area purchased by TTCS and BHS from the Hoang Anh Gia Lai Sugar Limited Company (HAGL Sugar).

Formerly the Kinh Do Corporation, KDC was established in 1993 and has grown to become one of the leading consumer product companies in Vietnam. Throughout the past 23 years of growth and development, it has expanded beyond the confectionery category to include ice cream, yogurt, desserts, frozen food, and edible oils.

Its vision is to serve the needs of Vietnamese consumers by supplying daily food products in various brands that enhance lifestyles and meet consumer needs throughout the day.

Development and expansion of the cooking oil industry is an important part of the Group’s overall strategy in the coming years. The Group’s business activities will be expanded across the entire value chain, from purchase to production, marketing, sales, and distribution.

Sugar has recently been an emerging issue with the ASEAN Trade in Goods Agreement (ATIGA) about come into effect in 2018, which will eliminate quotas and reduce tariffs on all sugar imported from other ASEAN countries.

In November, Vietnam’s largest dairy producer, Vinamilk, officially set foot in the sugar industry by purchasing a 65 per cent share in the Khanh Hoa Sugar Joint Stock Company, renaming it the Viet Nam Sugar JSC (Vietsugar).

This was part of plans to expand Vinamilk’s source of raw materials for its closed production chain, according to CEO Mai Kieu Lien. “This is not just a strategic handshake between two businesses in the food industry,” she said. “With the investment and advanced management experience of Vinamilk, the cooperation creates a new direction for Vietnam in the global playing field.”

User comment (0)

Send comment