Kinh Do Corporation in Ho Chi Minh City and the Japanese food company Ezaki Glico signed a strategic cooperation agreement in September in which Kinh Do will exclusively distribute Glico’s high-quality Pocky snacks in Vietnam.
According to the agreement, Kinh Do will distribute Pocky snacks first and later other snack products including Pretz Collon and chocolate Alfie, through its wide distribution network in the country.
After four years, sales of Glico’s products in Vietnam are expected to reach VND1 trillion (US$48 million).
According to Tran Le Nguyen, CEO and vice chairman of Kinh Do, his firm will distribute many more products of Glico from their 120,000 retail outlets. Besides, if the business runs smoothly the two sides will consider opening a production plant in the country.
Katsuhisa Ezaki, President of Ezaki Glico, said the cooperation between Glico and Kinh Do was part of a business expansion plan for participation of foreign countries in Asia.
Ezaki Glico is a Japanese confectionery firm having 90 years experience. The firm had sales of more than US$35 billion last year.
Ezaki Glico become a strategic shareholder of Kinh Do in February this year through an acquisition of 14 million shares worth around VND700 billion ($33.6 million) or 10 percent of equity capital.
This year has seen many mergers and acquisitions in which foreign companies have sought to increase their stake in local firms to take over the latter.
For instance, Thailand’s Nawaplastic Industry announced plans to buy an additional 800,000 shares from Binh Minh Plastic, increasing its stake in the company to 20.38 percent; the Singapore-based Orchid Fund Private Limited owns a 9.81 percent stake of FPT; CFR International SPA holds as much as 45.49 percent of Domesco, a medical equipment import-export company; and Nichirei Food bought more shares of Cholimex Food.