Investors, retailers squeeze into prepared food market
VinaCapital has invested US$32.5 million in Ba Huan, a poultry egg producer, while Kido plans to join forces with a Thai partner to make bottled milk tea and herbal drinks.
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The demand for prepared food is high as consumers are getting busier |
Before VinaCapital poured VND760 billion into Ba Huan, Vinh Thanh Dat Food JSC, a rival of Ba Huan, launched a series of instant food with eggs.
Ba Huan, established as a poultry egg supplier, has also joined the processed food market. Ba Huan’s products now include fresh chicken, sausage and chicken balls and flan which are distributed through supermarkets.
Ba Huan will expand the list of product items, with importance attached to processed food targeting busy consumers.
However, it was Sai Gon Food which first exploited the fresh food market. Most recently, it launched a new product – fresh rice gruel with different kinds of food.
The fresh gruel is now competing with Sai Gon Co-op’s products and imports which have much higher prices.
In 2017, Sai Gon Food began cooperating with 7-Eleven to provide fresh meals through the retail chain.
Le Thi Thanh Lam, deputy general director of Sai Gon Food, said that the fresh meals service will be the major growth driver of the company in the future.
She plans to provide fresh meals to hospitals and schools as well.
The moves taken recently by producers all show they are targeting busy customers. Office workers can buy rice, gruel and other meals for their short lunches at the office.
Housewives can buy ready-made meals and keep in the refrigerator for use later, when they don’t have time to cook.
The convenience, diversity and reasonable prices have brought fat profits to suppliers. More and more players have joined the market, from big companies to small catering suppliers.
Household-run catering suppliers such as Bep Cua Phuoc, Bep Ba Cha and Bep Com Chieu Ngon are also names well known to office workers.
The suppliers attract customers who don’t have much time to cook but still want home-made dishes.
The products are made of fresh materials, are handmade (not in an industrial way) and do not contain additives and preservatives.
Nguyen Phi Van, a retail franchise expert, said that ready-made fresh food is a growing tendency in Vietnam, where consumers are getting busier.
