Arla Foods has said that it will launch milk powder products under its Milex brand in the Vietnamese market this October.
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The move follows the group’s successful expansion into Algeria and China.
According to Arla, Vietnam is one of Asia’s fastest growing markets for dairy products.
“Many of our competítors are already active in the market. But in view of the enormous growth, we believe that Vietnam continues to offer great potential. In the first year, for instance, we expect to achieve sales of around US$10.5m,” Frede Juulsen, head of Arla Foods’ milk powder business, said
“There is no doubt that Vietnam has great potential for us. Sales of milk powder increased by around 30% in the fourth quarter of last year and even if this level cannot be sustained, we expect to see a positive development for a long time,” Juulsen commented.
Arla said that it has established a subsidiary, Arla Foods Vietnam, which was approved and registered with the Vietnamese authorities on 21 May. The company added that it has secured an agreement with a local distributor Asian Dragon.
