16 April 2008 –Kirin Beverage Co. has teamed up with fellow Japanese company Acecook, an instant noodle manufacturer, in order to build a beverage factory in Vietnam, local media report.
The two companies’ joint venture, Vina Kirin Acecook Beverage Co, was recently awarded a license to build the plant in the southern Vietnamese province of Binh Duong.
The factory, on the My Phuoc 2 Industrial Park in Ben Cat District, will produce a variety of tea-based and milk-based soft drinks aimed specifically at the Vietnamese market.
Kirin brought 51% of the $60 million investment, with Acecook Japan bringing an additional 39% and Acecook Vietnam the final 10%.
The project will proceed in two phases. At the end of the first phase, which is expected to cost $34 million, the new factory will be producing 96 million bottles of a variety of drinks annually. Work should start in May or June this year and be complete by May 2009.
By the end of the second phase of the project the plant’s output should have increased to 240 million bottles a year.
The venture marks Acecook’s first foray into the beverage business. It will combine Kirin’s knowledge and experience of the drink industry and Acecook Vietnam’s existing distribution network and marketing know-how. Acecook currently ranks as Vietnam’s top instant noodle company with a 60% share of the market.
The joint venture targets a $100 million turnover in its first year of operation.