Jaime Brown, chair of the US-based food company Delori, has stated he hopes Delori and NutiFood, his partner, would earn US$100 million a year from their cooperation.
He also promised to help the Vietnamese partner shine in the US, at Walmart or the most powerful retail chains. In the immediate time, NutiFood will export Pedia Plus to the US.
Within the last 24 months, two female billionaires, Engineer Mai Kieu Lien, CEO of Vinamilk, and Doctor Tran Thi Le, CEO of NutiFood, have entered the US market.
Nielsen, with annual revenue of VND50 trillion, is leading the Vietnam dairy industry with approximately 50% of market share.
Meanwhile, NutiFood, with revenue of VND10 trillion, dominates the market segment of ready-made powder milk and specialized products for children with 37.4% and 39.3% of market share, respectively, according to Nielsen.
While Vinamilk has diversified dairy products and targets the mass market, Nutifood focuses on specific markets for old people and children and targets a niche market.
However, though the Vietnam dairy industry has been witnessing high growth rate of 15-17%, the domestic market is now compared to a shirt which has become too tight for leaders.
Vinamilk’s CEO Mai Kieu Lien once said that gaining 1-2% of the domestic market share would be a victory.
Therefore, conquering foreign markets, especially the US, if successful, will help Vinamilk and NutiFood in the world dairy producers’ map.
Vinamilk took over the Driftwood dairy factory in the US in 2016 and began conquering the market. NutiFood has overcome the barrier set by FDA (Food & Drug Administration) to be able to bring its products to the US.
A representative of NutiFood said the company plans to export US$20 million worth of products in the first year and raise export turnover to US$100 million five years later. This is a very ambitious plan because it wants to sell dairy products in a country with powerful capability in dairy production.
While Vinamilk focuses on organic liquid milk, NutiFood mostly provides specific products for anorexia, obesity, malnutrition and aging.
In Vietnam, according to the Ministry of Industry and Trade (MOIT), dairy product consumption level is 24 kilograms per head, much lower than other markets. Therefore, dairy producers still have opportunities to boost sales.