Trade Resources Company News Kinh Do Sells off Remaining 20% Stake to Mondelez

Kinh Do Sells off Remaining 20% Stake to Mondelez

Tags: Mondelez, Kinh Do

Kinh Do Sells off Remaining 20% Stake to Mondelez

Mondelez International has bought the remaining 20% stake in Vietnamese food company Kinh Do’s snack unit for VND 2tn ($90m) as part of its expansion strategy in emerging markets.

In November 2014, Mondelez had agreed to buy 80% of its stake in Kinh Do for $370m.

The Cadbury and Oreo maker now controls 100% stake in Kinh Do and has changed the brand name to Mondelez Kinh Do. Mondelez Kinh Do was formally launched in July 2015 and following which Kinh Do has officially withdrawn from its snack business.

Mondelez Kinh Do managing director Stephane Gripon said after the launch of the new comapny: “I’m excited to lead the talented team at Mondelez Kinh Do.

“Vietnam is a fast-growing market that is home to over 90 million increasingly sophisticated consumers looking for high-quality snacking products.”

According to a report from VN Express International, , the Vietnamese company used to record $175m in annual sales from confectionary products that include biscuits, crackers, moon cakes and sweet biscuits.

While announcing the deal, Mondelez said Kinh Do's  brands like Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers will complement its snacks brands in the region, including Oreo cookies, Ritz crackers and Cadbury chocolates.

The US based food major also said that it will leverage Kinh Do's manufacturing capabilities, distribution network.

Currently Mondelez Kinh Do has two manufacturing facilities at Hung Yen and Binh Duong in the Vietnam. Mondelez’s Asia Pacific business has net revenue of over $5bn with operations in 14 countries.

In this region, the company employs 20,000 people in over 30 manufacturing plants and 10 R&D centers.

Earlier this month, its parent company Mondelez International had acquired a license from UK-based Burton's Biscuit Company to manufacture Cadbury biscuits. Prior to this, the company made a failed attempt in buying US-based chocolate maker Hershey Company at a price of $23bn.

In July, Mondelez announced its Q2 results registering a 17.7% decrease in its net revenue which fell to $6,302m.

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