DMPI ventures into ready-to-drink dairy market
Competition in the local dairy market is seen heating up as Del Monte Philippines Inc. (DMPI) launched a new line of ready-to-drink milk, yogurt and milk tea products through a joint venture with Vietnam Dairy Products JSC (Vinamilk), one of Asia’s largest dairy companies.
The portfolio consists of Del Monte-Vinamilk Fresh Milk, IQ Smart Flavored Milk, YoGurt Drink and Tea Bliss Milk Tea which have been rolled out to the local retail market at price points that were about 5 percent lower than comparable products.
”Del Monte’s mission is to provide Filipinos with high quality products that bring to life health and wellness, and our entry into the dairy category is very much consistent with this mission,” Luis Alejandro, president of Del Monte-Vinamilk and DMPI chief operating officer, said at a virtual press briefing on Tuesday.
Alejandro said the partnership with Vinamilk—the leading dairy company in Vietnam and among the biggest in Asia—was a “union of market leaders” and offered many advantages “to compete and win in the market.”
Vinamilk is seen to bring its expertise in dairy manufacturing and innovation to the partnership, while DMPI will leverage its extensive distribution presence across all channels in the country, he said.
Initially, the 50-50 percent venture between DMPI and Vinamilk is importing Vinamilk’s products and distributing them to the mass consumer market.
“Depending on the success of our initiatives in the coming years, there are also plans for local production,” Alejandro said. “This may involve daily operations and as you know, Del Monte has a very, very big footprint in Bukidnon. We have 26,000 hectares of pineapple plantation … So we have the land. We think that if in the future, our success justifies local production and if it is feasible, then we will explore that.”
Kieu Lien, chair of Del Monte-Vinamilk and chief executive officer of Vinamilk, said: “We highly appreciate Del Monte’s support and cooperation during these times and hope that we will together develop a successful joint venture in the Philippines for mutual benefits.”
The group’s fresh milk products are sourced from cows grown in “globally certified, environment-friendly” dairy farms and made with 100-percent pure cow’s milk, without extenders, antibiotics or added preservatives, based on the company’s briefer.
The flavored milk drink is fortified with vitamin A to support eye function, Omega 3 and 6 to aid brain function, and B Vitamins to aid energy production. They come in vanilla, chocolate and strawberry variants.
The yogurt drink is available in two mixed fruits and strawberry variants and fortified with vitamins, while its milk tea is made with creamy milk and real black tea, with a wintermelon flavor. INQ
