Arla Foods' milk powder debuts in Vietnam
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- 06 November 2007
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The milk powder product Milex has now arrived on the shelves in Vietnam. The brand's potential is seen as very substantial in a country, which is currently enjoying one of Asia's fastest growth rates.
Last week, Milex was introduced to key retailers in Ho Chi Minh City and Hanoi, and the product has now arrived in stores in the two pulsating big cities. This happened after a hectic launch period in late October/early November, which included everything from conferences with key customers and meetings with journalists to the shooting of two TV commercials and the training of a 120-strong sales team.
"We've got off to a good start. Considering that Milex is unknown in Vietnam, sales are going well and the product can be found in many stores: proof that the owners believe in us. Many of them mention Arla Foods' size and the product's Scandinavian quality," says Claus Pedersen, Head of Arla Foods Vietnam.
With its 84 million inhabitants, Vietnam is enjoying strong growth, especially in the commercial capital Ho Chi Minh City and the power centre, Hanoi. Competition here is tough, but consumption of dairy products is increasing by 25 per cent annually so the potential is considerable.
"Of course, at the end of the day, it's the consumer who decides whether Milex will be a success. However, the response so far confirms our confidence in Vietnam's potential," says Sten Nielsen, who is responsible for regional sales for Arla Foods Ingredients and has headed up the last two years' preparations for launching in Vietnam.
Arla Foods Vietnam was established in May this year as a representative office. The company, which has seven employees, is based in Ho Chi Minh City and also has an office in Hanoi. Day-to-day sales are handled by a partner, America Trading, which, in October, took on 83 sales people in Ho Chi Minh City and 40 in Hanoi.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.