1. IMAS Communication
INDUSTRY INTELLIGENCE
Liquid Milk
Oct 2013

2. Market Overview
2

3. Vietnam Market
LARGE POPULATION:
Over 92 Millions
Global Ranking: No.14
Potential
Young
Dynamic
Over 70% women agree
to buy what children
want
YOUNG AGE
50% under 30
Over 1 Million
Newborns each year
ON-GOING
URBANIZATION
Urban: 32%
Rate: 3%
CIVETS Member
GDP Ranking: No.57

4. Vietnam Target
Consumer Target
Over 1 Million
Newborns each
year
Group 1: BABY
< 5 YO
Over 70% women
agrees to buy
what children
want
Group 2: KID
05 – 14 YO
Buyer Target
We want fun
We are young
We like trendy
The main base
in the next
10 years
Good Quality
than
Expensive price
Group 3: TEEN
Group 4:
YOUNG ADULT
Group 5: MID-AGE
& SENIOR
4

5. Consumption
Litter of Milk
Consumption/ Person
Volume Per Buyer
60
50
40
30
20
10
0
2010
2013
Rural
Urban
0
5
10
2012
2010
15
2009
20
1995
Consumption in Vietnam highly increases year by year, especially in rural areas.
5

6. Supplier Growth Prediction
1200000
16%
14%
1000000
12%
800000
10%
600000
8%
6%
400000
4%
200000
2%
0
0%
2013
2014
2015
No. of Milk Cow
2016
2017
Capacity (ton)
2018
2019
Increase Rate
2020
Supplier capacity is predicted to
increase from 10 -15% per year. But it
still does not meet the demand

7. Market share
Early 2013 Market Share
2012 Market share
18%
Vinamilk
8%
27%
Vinamilk
46%
Friesland Campina
Nestlé
7%
49%
25%
Others
20%
• 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
Friesland Campina
TH True Milk
Others

8. Opportunity
Milk Consumption
Comparison
30
NOT ONLY BY PRICE
VIETNAM DAIRY MARKET IS ALSO DRIVEN
BY
REAL DEMAND INCREASE
27
600
RURAL
URBAN 4 CITIES
25
Monthly Spend/buyer (‘000 VND)
21
400
20
15
15
26
16
10
15
6
0
2012
Viet Nam
Thailand
2010
2012
217
260
0
22
15
10
2011
200
100
15
28
25
5
432
300
31
29
540
500
2010
2011
2012
China
Volume change %
(units)
Value change %
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
Dairy in the next 3 years

9. Vinamilk – Market Leader
9

10. Vinamilk Growth
Market Share
Revenue (Billion VND)
60
30000
50
25000
40
20000
30
15000
20
10000
10
5000
0
2009
2010
2011
2012
Vinamilk
Vinamilk reigns the Liquid Market for years
Early 2013
0
2006
2007
2008
2009
2010
Revenue (Billion VND)
2011
2012

11. Vinamilk Brands & Products
Vinamilk
Dielac
Fresh milk
Milk powder
for mother
Yoghurt
Milk powder
for baby
Ridielac
Cereal
powder for
kid
Vfresh
Soybean
Milk
Longevity
Fruit juice
Southern
star
Drinking
Yoghurt
Smoothie
Fermented
Yoghurt
Atiso tea
Ice-Cream
Vfresh Aloe
Vera
Cheese
Milk powder
for elder
Condense
milk
- 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

12. 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

13. 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
14

15. Market competition
Market Share Competition
Vinamilk
Friesland Campina
60
50
• Friesland campina lost its market
share gradually till 2012.
• In the early 2013, Friesland
campina’ s market share started to
raise again
40
30
20
10
0
2009
2010
2011
2012
Early 2013

16. 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 – “Sữa Chọn”. Friesland Campina position “Sữa Chọn” as
a different milk in Vietnam Market.

17. Quang Ngai Sugar
Soybean Milk Leader
17

18. Soybean Milk Position
Soybean milk, step by step, plays an important role in
product structure of Quang Ngai Sugar
Soybean Growth compares with
Sugar
Product structure
2000
1800
1600
Sugar
1400
Soybean Milk
1200
Confectionery
1000
Other Beverage
800
Beer
600
Others
400
200
0
2010
2011
Sugar
Soybean Milk
2012
Series 3

19. Soybean Milk Products
With 3 lines of product, Vinasoy is the leading
brand in Soybean Market.
19

20. Thanks for reading!
Sources: www.kantarworldpanel.com & www.dairyvietnam.com
Made by Feniceb HT – Account Executive of IMAS Communication