Ice Cream - Vietnam: Headlines

Ice Cream - Vietnam
Category Briefing | 10 Nov 2010
HEADLINES
s s s s s s
In 2010 ice cream grows by 16% in current value terms to reach VND3 trillion High consumer demand for dairy ice cream continues to push up sales As in 2009, single portion dairy ice cream has the highest value growth at 18% 2010 unit price continues strong upward movement Kinh Do Corp remains the leader with a 9% value share Retail value sales growth is expected to have a CAGR of 4% over the forecast period
TRENDS
s
With a better economic outlook in 2010 and the return of Walls in September 2009, ice cream had a good year and saw increased competition and expansion. Consumer demand continued to increase, particularly for dairy ice cream since consumers preferred it to water ice cream products. In general, dairy ice cream was perceived as having more varieties, better taste and higher quality. Most water ice cream catered for consumers with low income levels in rural areas, while some premium water ice cream was only seen in high class ice cream food service outlet and has very low presence in all retail channels. Sales were higher in 2010 than in 2009, which not only reflected the signs of economic recovery but also explained the huge expansion potential for ice cream in Vietnam. Rising personal incomes and higher living standards increased consumer demand for indulgence treats, many of which were influenced by Western lifestyles. This partially explained the change in the consumer base in ice cream with the move from children to young people and families. The top performer was single portion dairy ice cream which had the highest current value sales growth of 18%. It was the most widely distributed and thus most convenient to buy when consumers made impulse purchases. It also led in terms of the number of brands and varieties. Chocolate was the most popular flavour of ice cream throughout the review period. Strawberry, vanilla, coconut and durian were also popular flavours, and their popularity moved up and down due to equal preferences by consumers. Ice creams unit price increased. This was due to the price increase of dairy ice cream. Since the majority of ingredients are imported, international price variations as well as fluctuating foreign exchange rates impacted local unit prices. Meanwhile, water ice creams unit price remained unchanged due to lack of competition, the small number of local players and low consumer demand. Other grocery retailers such as street vendors and mobile stalls were the most important distribution channels of ice cream in 2010. When it first launched Wall's in 2000, Unilever used these channels to quickly gain nationwide coverage. However, the rapid development of modern retail channels during the review period shifted the industry focus to supermarkets/hypermarkets and convenience stores. Consumers were attracted to these modern retailers which offered a comfortable shopping environment, safety and hygiene with convenience and accessibility. This is why Unilever changed its strategy and chose supermarkets/hypermarkets as its main distribution channel when it relaunched the brand in 2009.
COMPETITIVE LANDSCAPE
s
As in the review period, the leader in ice cream remained Kinh Do Corp in 2009. It inherited Unilever's nationwide distribution network for Wall's when Unilever stopped distributing ice cream in Vietnam. In 2003, Kinh Do developed its own ice cream products using Unilever's technology and exploited its competitors large retail network to grow strongly and reach the top position in ice cream. It exploited the fact that there were many small, private manufacturers. In 2009, sales of Kinh Do's brands accounted for 10% of all ice cream. Its most renowned brands were Merino and Celano in single dairy portion ice cream. Kinh Do also penetrated bulk ice cream with newly-developed products and dynamic marketing activity. The most outstanding performance in 2009, however, was from Unilever Vietnam Co Ltd. The company recorded growth in value sales by almost 78%. Although its share was 1%, strong awareness of its brands such as Walls and Cornetto helped sales. At end of 2009, Unilever announced its official return to Vietnamese ice cream by taking over the importation of ice cream from Thailand from other distributors such as METRO Cash & Carry Vietnam Ltd. In 2010, with active promotion and advertisement, the company is expected to gain further share.
Page 1 of 9
The competition between domestic and international companies in ice cream was thought to end in 2003 when the Wall's brand was removed. Since then local manufacturers successfully led the fragmented market with Vinamilk and Kinh Do taking a joint share of 15%. The participation of famous foreign brands such as Fanny and Monterosa was not very strong. However, with the return of the Walls brand, interesting changes are expected. Marketing activities were carried out by big players such as Vinamilk and Kinh Do. Smaller companies either do not have the budget or find it ineffective to compete with these big players solely by advertising and promotions. Instead of advertising via TV, radio and newspapers, the small players use more limited activities such as point-of-sale promotions, posters or even word-of-mouth.
PROSPECTS
s
Since ice creams consumption in Vietnam is still low compared to other countries in the region at one litre per capita each year, it is expected that it will continue developing strongly between 2010-2015 as market conditions and living standards improve, and disposable incomes grow. Consumer demand for ice cream, although already high, is anticipated to increase further as more consumers are willing to buy indulgence food and snacks as the economy shows signs of recovery. Lastly, the hot weather in Vietnam is another factor that will push growth. Over the forecast period, ice cream will increase with a constant value CAGR of 4% to reach a retail value of VND4 trillion in 2015. A Unilever spokesman commented that it was the right time to re-enter ice cream in Vietnam. Although there are many competitors, this will help to stimulate market expansion and maturity is not expected for some considerable time. The target market is expected to widen to adults, especially groups and families. This will be an opportunity for bulk ice cream and multi-pack ice cream to grow. Flavour extension will be a future development to target these consumers, as adult consumers tend to demand higher quality than teenagers and children. Single portion dairy ice cream will have the highest growth rate in terms of sales value and volume in the forecast period. Currently the most popular type of ice cream, the convenience in storing, selling and consumption of this product mean demand in key urban areas will continue to rise. This product will be important for companies when planning their expansion strategy into other regions of the country. The distribution of ice cream will move towards modern retailers, such as supermarkets/hypermarkets and convenience stores. These retailers ensure a pleasant shopping environment and better customer service compared to traditional retailers. However, as ice cream is an indulgence product and its main target is consumers who buy on impulse, street vendors and mobile stalls will account for a large share of channel distribution of ice cream as they are the most convenient ways to buy ice cream.
CATEGORY DATA
Table 1 Sales of Ice Cream by Category: Volume 2005-2010 '000 litres Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream 2005 16,438.73 16,244.00 5,911.06 10,332.94 2,548.04 2,548.04 2,548.04 35,230.77 2006 18,275.35 17,122.76 6,324.83 10,797.92 2,777.36 2,777.36 2,777.36 38,175.48 2007 19,894.04 18,796.06 875.00 6,799.20 11,121.86 3,068.99 3,068.99 3,068.99 41,759.09 2008 20,809.10 19,736.17 993.13 7,343.13 11,399.91 3,329.85 3,329.85 3,329.85 43,875.12 2009 21,402.96 20,744.22 1,112.30 8,004.01 11,627.91 3,579.59 3,579.59 3,579.59 45,726.77 2010 23,329.23 21,917.65 1,234.65 8,764.40 11,918.60 3,865.96 3,865.96 3,865.96 49,112.84
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 2 Sales of Ice Cream by Category: Value 2005-2010
Page 2 of 9
VND billion Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream
2005 926.60 500.91 253.55 247.36 87.56 87.56 87.56 1,515.08
2006 1,085.23 558.00 292.09 265.91 98.51 98.51 98.51 1,741.74
2007 1,241.08 641.56 21.00 337.37 283.19 116.24 116.24 116.24 1,998.88
2008 1,394.40 723.27 24.99 398.09 300.19 135.42 135.42 135.42 2,253.08
2009 1,533.84 812.69 28.24 467.76 316.70 155.73 155.73 155.73 2,502.26
2010 1,793.71 916.11 31.63 551.95 332.53 179.87 179.87 179.87 2,889.70
Table 3 Sales of Ice Cream by Category: % Volume Growth 2005-2010 % volume growth Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream 2009/10 9.00 5.66 11.00 9.50 2.50 8.00 8.00 8.00 7.40 2005-10 CAGR 7.25 6.17 8.20 2.90 8.70 8.70 8.70 6.87 2005/10 TOTAL 41.92 34.93 48.27 15.35 51.72 51.72 51.72 39.40
Table 4 Sales of Ice Cream by Category: % Value Growth 2005-2010 % current value growth Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream 2009/10 16.94 12.73 12.00 18.00 2005-10 CAGR 14.12 12.83 16.83 2005/10 TOTAL 93.58 82.89 117.69
Page 3 of 9
- Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream
5.00 15.50 15.50 15.50 15.48
6.10 15.49 15.49 15.49 13.78
34.43 105.42 105.42 105.42 90.73
Table 5 Leading Flavours for Ice Cream 20052010 ranking Chocolate Vanilla Strawberry Durian Coconut Banana Raisin Mango Lemon 2005 1.00 3.00 2.00 4.00 5.00 8.00 7.00 6.00 2006 1.00 2.00 5.00 3.00 4.00 6.00 8.00 7.00 9.00 2007 1.00 2.00 6.00 3.00 4.00 5.00 8.00 7.00 9.00 2008 1.00 2.00 6.00 3.00 5.00 4.00 7.00 8.00 9.00 2009 1.00 2.00 6.00 3.00 4.00 5.00 7.00 8.00 9.00 2010 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00
Table 6 Ice Cream Company Shares 2005-2009 % retail value rsp Kinh Do Corp Vietnam Dairy Products JSC (Vinamilk) Thuy Ta Co Ltd Trang Tien Service & Trading Co Ltd Unilever Vietnam Co Ltd Fanny Vietnam Co Ltd Phan Nam Monterosa Trading JSC Bach Dang Co Ltd Ha Noi Trade Corp CoolBrands International Inc Unilever Bestfoods Vietnam Co Ltd Others Total 2005 8.11 4.97 3.55 1.25 1.08 1.44 0.73 0.26 0.23 78.37 100.00 2006 7.90 4.49 3.57 1.89 1.26 1.60 0.75 0.29 0.21 78.05 100.00 2007 8.00 4.46 3.56 1.77 1.05 1.35 1.67 0.71 0.28 0.20 76.94 100.00 2008 8.85 4.63 3.93 2.07 1.11 1.48 1.36 0.80 0.20 0.12 75.45 100.00 2009 9.42 5.11 4.02 2.28 1.78 1.59 1.03 0.82 0.13 0.06 73.76 100.00
Page 4 of 9
Table 7 Ice Cream Brand Shares 2006-2009 % retail value rsp Merino Vinamilk Thuy Ta Celano Trang Tien Fanny Cornetto Monterosa Bach Dang Paddle Pop Four Season Swensen's Cornetto Paddle Pop Wall's Cornetto Paddle Pop Premium Wall's Others Total Company Kinh Do Corp Vietnam Dairy Products JSC (Vinamilk) Thuy Ta Co Ltd Kinh Do Corp Trang Tien Service & Trading Co Ltd Fanny Vietnam Co Ltd Unilever Vietnam Co Ltd Phan Nam Monterosa Trading JSC Bach Dang Co Ltd Unilever Vietnam Co Ltd Ha Noi Trade Corp CoolBrands International Inc Kinh Do Corp Kinh Do Corp Kinh Do Corp Unilever Bestfoods Vietnam Co Ltd Unilever Bestfoods Vietnam Co Ltd Unilever Bestfoods Vietnam Co Ltd Unilever Bestfoods Vietnam Co Ltd Others Total 2006 4.98 4.49 3.57 2.92 1.89 1.26 1.60 0.75 0.29 0.21 78.05 100.00 2007 4.93 4.46 3.56 3.06 1.77 1.35 1.05 1.67 0.71 0.28 0.20 76.94 100.00 2008 5.50 4.63 3.93 3.35 2.07 1.48 1.11 1.36 0.80 0.20 0.12 75.45 100.00 2009 5.84 5.11 4.02 3.58 2.28 1.59 1.50 1.03 0.82 0.28 0.13 0.06 73.76 100.00
Table 8 Impulse Ice Cream Company Shares 2005-2009 % retail value rsp Kinh Do Corp Thuy Ta Co Ltd Vietnam Dairy Products JSC (Vinamilk) Trang Tien Service & Trading Co Ltd Unilever Vietnam Co Ltd Fanny Vietnam Co Ltd Bach Dang Co Ltd Phan Nam Monterosa Trading JSC Ha Noi Trade Corp Unilever Bestfoods Vietnam Co Ltd Others Total 2005 19.12 9.17 7.87 3.79 3.01 2.20 3.66 0.80 50.39 100.00 2006 19.00 9.37 7.38 5.91 3.22 2.33 4.10 0.90 47.78 100.00 2007 18.93 9.20 7.36 5.52 3.27 3.31 2.21 4.21 0.88 45.10 100.00 2008 20.92 9.91 8.26 6.43 3.46 3.69 2.49 3.30 0.62 40.93 100.00 2009 22.04 9.96 9.21 7.01 5.49 3.91 2.53 2.30 0.39 37.15 100.00
Table 9 Impulse Ice Cream Brand Shares 2006-2009 % retail value rsp Company 2006 2007 2008 2009
Page 5 of 9
Merino Thuy Ta Vinamilk Celano Trang Tien Cornetto Fanny Bach Dang Monterosa Paddle Pop Four Season Cornetto Paddle Pop Cornetto Paddle Pop Others Total
Kinh Do Corp Thuy Ta Co Ltd Vietnam Dairy Products JSC (Vinamilk) Kinh Do Corp Trang Tien Service & Trading Co Ltd Unilever Vietnam Co Ltd Fanny Vietnam Co Ltd Bach Dang Co Ltd Phan Nam Monterosa Trading JSC Unilever Vietnam Co Ltd Ha Noi Trade Corp Kinh Do Corp Kinh Do Corp Unilever Bestfoods Vietnam Co Ltd Unilever Bestfoods Vietnam Co Ltd Others Total
12.19 9.37 7.38 6.82 5.91 3.22 2.33 4.10 0.90 47.78 100.00
11.83 9.20 7.36 7.10 5.52 3.27 3.31 2.21 4.21 0.88 45.10 100.00
13.21 9.91 8.26 7.71 6.43 3.46 3.69 2.49 3.30 0.62 40.93 100.00
13.87 9.96 9.21 8.17 7.01 4.63 3.91 2.53 2.30 0.86 0.39 37.15 100.00
Table 10 Take-home Ice Cream Company Shares 2005-2009 % retail value rsp Kinh Do Corp Vietnam Dairy Products JSC (Vinamilk) Thuy Ta Co Ltd Fanny Vietnam Co Ltd Phan Nam Monterosa Trading JSC CoolBrands International Inc Unilever Bestfoods Vietnam Co Ltd Others Total 2005 31.00 41.00 9.00 1.50 4.00 4.00 9.50 100.00 2006 32.00 37.50 10.00 4.00 5.00 3.80 7.70 100.00 2007 33.00 36.00 10.50 5.00 5.50 3.50 6.50 100.00 2008 35.50 33.00 12.50 5.00 5.00 2.00 7.00 100.00 2009 36.30 34.00 12.70 5.10 4.50 1.00 6.40 100.00
Table 11 Take-home Ice Cream Brand Shares 2006-2009 % retail value rsp Vinamilk Merino Celano Thuy Ta Fanny Monterosa Swensen's Wall's Premium Company Vietnam Dairy Products JSC (Vinamilk) Kinh Do Corp Kinh Do Corp Thuy Ta Co Ltd Fanny Vietnam Co Ltd Phan Nam Monterosa Trading JSC CoolBrands International Inc Kinh Do Corp Unilever Bestfoods Vietnam Co Ltd 2006 37.50 19.00 13.00 10.00 4.00 5.00 3.80 2007 36.00 19.50 13.50 10.50 5.00 5.50 3.50 2008 33.00 21.00 14.50 12.50 5.00 5.00 2.00 2009 34.00 21.50 14.80 12.70 5.10 4.50 1.00 -
Page 6 of 9
Wall's Others Total
Unilever Bestfoods Vietnam Co Ltd Others Total
7.70 100.00
6.50 100.00
7.00 100.00
6.40 100.00
Table 12 Sales of Ice Cream by Distribution Format: % Analysis 20052010 % retail value rsp Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 2005 100.00 100.00 5.30 19.00 0.99 18.01 75.71 100.00 2006 100.00 100.00 5.64 18.44 1.12 17.32 75.92 100.00 2007 100.00 100.00 6.44 18.31 1.28 17.03 75.25 100.00 2008 100.00 100.00 6.94 18.33 1.44 16.89 74.73 100.00 2009 100.00 100.00 7.42 17.97 1.62 16.34 74.61 100.00 2010 100.00 100.00 7.48 17.29 1.74 15.55 75.23 100.00
Table 13 Forecast Sales of Ice Cream by Category: Volume 2010-2015 '000 litres Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream 2010 23,329.23 21,917.65 1,234.65 8,764.40 11,918.60 3,865.96 3,865.96 3,865.96 2011 25,195.57 23,155.93 1,358.12 9,640.84 12,156.98 4,194.56 4,194.56 4,194.56 2012 26,959.26 24,521.43 1,480.35 10,653.12 12,387.96 4,572.07 4,572.07 4,572.07 2013 28,576.81 26,034.69 1,598.78 11,824.97 12,610.94 5,006.42 5,006.42 5,006.42 2014 30,005.65 27,695.64 1,710.69 13,184.84 12,800.11 5,507.06 5,507.06 5,507.06 2015 31,205.88 29,508.46 1,813.33 14,767.02 12,928.11 6,085.30 6,085.30 6,085.30 -
Page 7 of 9
Ice Cream
49,112.84
52,546.06
56,052.76
59,617.92
63,208.35
66,799.64
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
Table 14 Forecast Sales of Ice Cream by Category: Value 2010-2015 VND billion Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream 2010 1,793.71 916.11 31.63 551.95 332.53 179.87 179.87 179.87 2,889.70 2011 1,862.80 959.76 34.47 604.39 320.89 189.76 189.76 189.76 3,012.32 2012 1,906.56 1,015.14 37.44 664.83 312.87 202.10 202.10 202.10 3,123.79 2013 1,922.71 1,089.93 40.47 741.28 308.18 216.24 216.24 216.24 3,228.88 2014 1,919.55 1,186.25 43.51 837.65 305.10 232.46 232.46 232.46 3,338.27 2015 1,948.35 1,309.23 46.55 959.11 303.57 251.06 251.06 251.06 3,508.64
Table 15 Forecast Sales of Ice Cream by Category: % Volume Growth 2010-2015 % volume growth Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream 2014/15 4.00 6.55 6.00 12.00 1.00 10.50 10.50 10.50 5.68 2010-15 CAGR 5.99 6.13 7.99 11.00 1.64 9.50 9.50 9.50 6.34 2010/15 TOTAL 33.76 34.63 46.87 68.49 8.47 57.41 57.41 57.41 36.01
Table 16 Forecast Sales of Ice Cream by Category: % Value Growth 2010-2015 % constant value growth 2010-15 CAGR 2010/15 TOTAL
Page 8 of 9
Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream Ice Cream
1.67 7.40 8.04 11.68 -1.81 6.90 6.90 6.90 3.96
8.62 42.91 47.19 73.77 -8.71 39.58 39.58 39.58 21.42
2011 Euromonitor International
Page 9 of 9

Ice Cream - Vietnam: Headlines

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ice Cream - Vietnam: Headlines

Uploaded by

Copyright:

Available Formats

Ice Cream - Vietnam

Category Briefing | 10 Nov 2010

Table 2 Sales of Ice Cream by Category: Value 2005-2010

2005 926.60 500.91 253.55 247.36 87.56 87.56 87.56 1,515.08

2006 1,085.23 558.00 292.09 265.91 98.51 98.51 98.51 1,741.74

5.00 15.50 15.50 15.50 15.48

6.10 15.49 15.49 15.49 13.78

34.43 105.42 105.42 105.42 90.73

Wall's Others Total

Unilever Bestfoods Vietnam Co Ltd Others Total

1.67 7.40 8.04 11.68 -1.81 6.90 6.90 6.90 3.96

8.62 42.91 47.19 73.77 -8.71 39.58 39.58 39.58 21.42

2011 Euromonitor International

You might also like