South Korea’s confectionery giant, Orion Corp. has entered into a strategic partnership with Thailand’s dairy giant, Dutch Mill Co to expand into Vietnam’s dairy market.
The business relationship was initiated last December when Orion Food Vina concluded an exclusive deal to sell Dutch Mill’s products in Vietnam. Orion Food Vina is the largest confectionery producer in Vietnam and it could take advantage of its strong sales and distribution channel to market Dutch Mill products nationwide.
Dutch Mill dominated the Thai market since 1984 holding 70% share of the market, and exports its products to 20 countries. A growing young population like Vietnam is key to its ambition of becoming the No.1 dairy enterprise in Southeast Asia. Its 2 flagship brands, ‘Proyo!’ and ‘Choco IQ’, were introduced in late August this year. Choco IQ is a chocolate-flavoured barley milk inspired by ChocoPie, while ProYo! is a yogurt drink containing 52% naturally fermented yogurt with real fruit juice.
An Orion spokesperson said, “Armed with a robust sales strategy, we’re poised to rapidly establish a foothold and aim to cement our position as the premier food enterprise in the region.”
Vietnam’s dairy market was valued at US$5.32 billion in 2021, with further growth expected due to its rising population with steady birth rates of 1.5 million babies annually.