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Trung Nguyen boosts distribution in China

Released at: 14:21, 25/05/2018

Trung Nguyen boosts distribution in China

Photo from Trung Nguyen Legend

Vietnamese coffee maker signs deal with Shanghai Qiuzhou to provide G7 coffee in China.

by Minh Do

A strategic cooperation agreement was signed on April 17 in Shanghai, with those in attendance including Mr. Sean Pan, Sales Director of the Trung Nguyen Legend Corporation in China, Ms. Li Jing, CEO of the Shanghai Qiuzhou Trade Co., a fast-moving consumer goods (FMCG) distributor, and its Sales Director Mr. Wang Lei, to provide Trung Nguyen’s G7 energy coffee in Vietnam’s northern neighbor.

Trung Nguyen targets revenue of $1.6 billion from the Chinese market over the next five years.

“With our strong distribution system and professional operations, we believe this cooperation will develop both sides,” said Ms. Li Jing.

Instant coffee is a popular product in China thanks to its mild taste, according to Trung Nguyen, and is suitable with the trend in China of consumption changing from tea to coffee. The market is estimated to grow 18 per cent in the 2014-2019 period, and was worth $9 billion in 2016, according to Euromonitor International. Trung Nguyen also plans to build a new coffee plant in the country that will focus on producing instant coffee, with construction to begin this year.

Its G7 products are available on online websites and in 1,000 supermarkets around the country. The Vietnamese coffee company will continue to boost its promotions and open new distribution networks in major cities such as Guangzhou, Changsha, and Hunan. In 2016-2017, turnover from China, including Hong Kong and Taiwan, was estimated at $30 million and the figure is forecast to reach $100 million this year.

Established in 1988, Shanghai Qiuzhou is one of the largest companies in China and has access to strong traditional and online distribution channels, including Carrefour, Lotus, Auchan, Metro, Tesco, NGS supermarkets, JD, Amazon, RT-Mart, Century Mart, Missfresh.com, and womai.com.

Trung Nguyen Legend established a representative office in Shanghai in November 2017.

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