Oct 2013

INDUSTRY INTELLIGENCE

Liquid Milk

IMAS Communication

2

Market Overview

Potential

Young

Dynamic

Over 70% women agree

to buy what children

want

YOUNG AGE

50% under 30

CIVETS Member

GDP Ranking: No.57

ON-GOING

URBANIZATION

Urban: 32%

Rate: 3%

Over 1 Million

Newborns each year

LARGE POPULATION:

Over 92 Millions

Global Ranking: No.14

Vietnam Market

4

Over 1 Million

Newborns each

year

Over 70% women

agrees to buy

what children

want Group 2: KID

05 – 14 YO

Group 1: BABY

< 5 YO

We want fun

We are young

We like trendy

Group 3: TEEN

The main base

in the next

10 years

Group 4:

YOUNG ADULT

Good Quality

than

Expensive price

Group 5: MID-AGE

& SENIOR

Vietnam Target

Consumer Target Buyer Target

5

0 5 10 15 20

Litter of Milk Consumption/ Person

2012 2010 2009 1995

0

10

20

30

40

50

60

2010 2013

Volume Per Buyer

Rural Urban

Consumption

Consumption in Vietnam highly increases year by year, especially in rural areas.

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

200000

400000

600000

800000

1000000

1200000

2013 2014 2015 2016 2017 2018 2019 2020

No. of Milk Cow Capacity (ton) Increase Rate

Supplier Growth Prediction

Supplier capacity is predicted to

increase from 10 -15% per year. But it

still does not meet the demand

46%

20%

7%

27%

2012 Market share

Vinamilk

Friesland Campina

Nestlé

Others

49%

25%

8%

18%

Early 2013 Market Share

Vinamilk

Friesland Campina

TH True Milk

Others

Market share

• Both Vinamilk and Friesland Campina’s market share increases

• Vinamilk still leads the market with about 50% market share.

• TH True Milk positions itself as a potential competitor

NOT ONLY BY PRICE

VIETNAM DAIRY MARKET IS ALSO DRIVEN BY

REAL DEMAND INCREASE

Volume change % (units)

Value change %

RURAL

31 26

15

28 22

15

2010 2011 2012

URBAN 4 CITIES

29

16 15

25

6 10

2010 2011 2012

Monthly Spend/buyer (‘000 VND)

600

500

400

300

200

100

0

540

260

Dairy in the next 3 years

15

21

27

0

5

10

15

20

25

30

2012

Milk Consumption Comparison

Viet Nam Thailand China

Opportunity

Vietnamese Liquid milk market still has many opportunities.

- Consumption is increasing but still lower than other countries in region

- Demand increases in both urban and rural areas

- Consumers are willing to spend more in future

432

217

9

Vinamilk – Market Leader

0

5000

10000

15000

20000

25000

30000

2006 2007 2008 2009 2010 2011 2012

Revenue (Billion VND)

Revenue (Billion VND)

Vinamilk Growth

0

10

20

30

40

50

60

2009 2010 2011 2012 Early 2013

Market Share

Vinamilk

Vinamilk reigns the Liquid Market for years

Vinamilk

Fresh milk

Yoghurt

Drinking Yoghurt

Fermented Yoghurt

Ice-Cream

Cheese

Milk powder for elder

Dielac

Milk powder for mother

Milk powder for baby

Ridielac

Cereal powder for

kid

Vfresh

Soybean Milk

Fruit juice

Smoothie

Atiso tea

Vfresh Aloe Vera

Condense milk

Longevity

Southern star

Vinamilk Brands & Products

- Diverse in products, Vinamilk brands present

in all dairy segments

- 3 main liquid milk products:

- Fresh Milk – Leader of market

- Drinking yoghurt

- Soybean Milk – Having a limited number

of competitors

Fresh milk: Vinamilk also reign market in the diversity of products

•100% Fresh milk - UHT, plain

•100% Fresh milk - UHT, sweetened

•100% Fresh milk - UHT, strawberry

•100% Fresh milk - UHT, chocolate

•100% Fresh milk - UHT, reduced fat, plain

•100% Fresh milk - UHT, reduced fat, sweetened

•100% Fresh milk - Pasteurized, plain

•100% Fresh milk - Pasteurized, sweetened

•100% Fresh milk - Pasteurized, reduced fat, plain

•Vinamilk UHT milk (ADM), sweetened

•Vinamilk UHT milk (ADM), strawberry

•Vinamilk UHT milk (ADM), chocolate

•Vinamilk UHT milk, plain (pouch)

•Vinamilk UHT milk, sweetened (pouch)

•Vinamilk UHT milk, strawberry (pouch)

•Vinamilk UHT milk, chocolate (pouch)

•Unsweetened, high-calcium and low-fat UHT Milk Flex

Vfresh soy Milk – High protein – no sugar

Vfresh soy Milk – High protein – low sugar

Gold soy Milk – 100% natural soy

Vinamilk is one of the limited companies

playing in Soybean milk market

14

Friesland Campina A strong Competitor

0

10

20

30

40

50

60

2009 2010 2011 2012 Early 2013

Market Share Competition

Vinamilk Friesland Campina

Market competition

• Friesland campina lost its market

share gradually till 2012.

• In the early 2013, Friesland

campina’ s market share started to

raise again

Products Not as diverse as Vinamilk products, Friesland Campina focus on fresh milk under the Dutch Lady brand

This year, Dutch Lady releases a new product – “Sưa Chon”. Friesland Campina position “Sưa Chon” as

a different milk in Vietnam Market.

17

Quang Ngai Sugar

Soybean Milk Leader

Product structure

Sugar

Soybean Milk

Confectionery

Other Beverage

Beer

Others

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2010 2011 2012

Soybean Growth compares with Sugar

Sugar Soybean Milk Series 3

Soybean Milk Position

Soybean milk, step by step, plays an important role in

product structure of Quang Ngai Sugar

19

Soybean Milk Products

With 3 lines of product, Vinasoy is the leading

brand in Soybean Market.

Made by Feniceb HT – Account Executive of IMAS Communication Sources: www.kantarworldpanel.com & www.dairyvietnam.com

Thanks for reading!