Nutifood has made a significant strategic move in the frozen foods sector by completing its acquisition of a 51% stake in KIDO Foods, a leading ice cream producer in Vietnam, on September 23. This acquisition not only marks a new chapter for Nutifood but is also poised to reshape the landscape of frozen food distribution in the region.
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KIDO Foods, a subsidiary of KIDO Group, has cemented its position as the market leader in Vietnam’s ice cream sector, primarily driven by its flagship brands, Merino and Celano. The company has impressively maintained over a 40% market share since 2019 and, as of 2023, it has captured a striking 46.7% share of the market, a testament to its strong branding and consumer loyalty.
The journey of KIDO Foods began back in 2003 with the acquisition of Unilever’s Wall’s ice cream factory. This pivotal decision led to the launch of the Merino brand in 2004 and the premium Celano line shortly afterward in 2005. Not resting on its laurels, KIDO Foods expanded into the frozen food sector in 2016 under its own brand, further diversifying its product offerings.
In a significant shift for the company, KIDO Foods delisted its 56 million shares from the Hanoi Stock Exchange and the Vietnam Securities Depository in 2022. This strategic move involved merging with its parent company, KIDO Group. As part of this merger, KIDO Group divested over 17.8 million KIDO Foods shares, reducing its ownership from 73% to 49%, effectively transforming KIDO Foods into an affiliate of the larger group.
KIDO Foods operates two modern manufacturing facilities: one located in Cu Chi in Ho Chi Minh City and another within the Vietnam-Singapore Industrial Park in Bắc Ninh. These plants collectively ensure a robust supply of ice cream products to meet the growing demand across Vietnam.
Nutifood’s decision to invest in KIDO Foods has been articulated by Tran Bao Minh, vice chairman of Nutifood’s Board of Directors. He emphasized that this acquisition allows Nutifood to diversify its portfolio beyond health-focused products to include those that cater to consumer enjoyment. This transition is significant, as it reflects changing consumer preferences and the desire for more indulgent options within the market.
Mn phrased the potential of KIDO Foods’ extensive distribution network, which includes ice cream freezers scattered throughout traditional retail outlets, modern retail chains, restaurants, hotels, and various entertainment venues nationwide. This logistics backbone gives Nutifood a substantial platform to rapidly expand its presence in the frozen foods market.