Sector News

Wilmar, Saigon Co-op to execute a joint venture

October 28, 2015
Food & Drink

Saigon Union of Trading Cooperatives (Saigon Co-op) and Wilmar International Limited announced on Oct. 27 the execution of a joint venture contract to establish Nam Duong International Foodstuff Corporation.

The new entity will be a limited liability company to be incorporated in Vietnam with two members (49% Saigon Co-op & 51% Wilmar Group) specializing in the manufacture of sauces and condiments for both the domestic and export markets.

Nam Duong International Foodstuff Corporation said it will undertake a project with a total investment capital of VND577.2 billion ($25.6 million) to construct a new factory in the Hiep Phuoc Industrial Park, Nha Be District, Ho Chi Minh City, which will take over the current operations of Saigon Co-op’s factory for the manufacture of sauces and condiments sold under the Nam Duong brand.

“As the retailer with the most extensive modern retailing network in Vietnam, Saigon Co-op has intimate knowledge of Vietnamese consumers’ taste and preference in food,” said Nguyen Thanh Nhan, general director of Saigon Co-op. “Wilmar Group, on the other hand, is very experienced in the manufacture and distribution of food products globally. The combination of Saigon Co-op and the Wilmar Group’s strengths in the Nam Duong International Foodstuff Corporation joint venture will be a milestone in the Vietnam consumer market. This joint venture will introduce international health and production standards and global distribution networks to Nam Duong sauces and condiments products that are well regarded and rich in traditional taste.”

Established in 1951, the Nam Duong brand is among the leading brands for sauces and condiments in Vietnam, which include soy sauce, chili sauce and tomato sauce. These products are also currently being sold in export markets such as the U.S., Canada, Europe and Vietnam.

Nam Duong International Foodstuff Corporation will leverage on Saigon Co-op’s strength in distribution and Wilmar’s experience in manufacturing operations as well as its research and development in food technology and also tap on Wilmar’s global network for export sales.

Source: World Grain

comments closed

Related News

February 4, 2023

Unilever names FrieslandCampina’s Hein Schumacher as next CEO

Food & Drink

Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

February 4, 2023

Tetra Pak execs flag plant-based ice cream development hurdles as indulgent offerings expand

Food & Drink

Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.

February 4, 2023

Examining the meaning of eco-labels: Is it time for mandated methodology?

Food & Drink

A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.

How can we help you?

We're easy to reach