Monde Nissin has signed a joint venture agreement with Malee Beverage Public Co. Ltd., a leading juice and canned fruit manufacturer in Thailand, to set up Monde Malee Beverage Corporation (MMBC) to tap the aggressive growth of the beverage market in the Philippines.
MMBC holds 100 million pesos (Bt77.61 million) in registered capital, of which Monde Nissin and Malee share 49 per cent stake in the joint venture and the remaining 2 per cent belonging to individual investors.
Monde Nissin will handle marketing, sales, distribution, and logistics while Malee will be responsible for product development and manufacturing. Monde Nissin is recognized to have one of the widest distribution networks in the industry with the ability to reach and service the biggest modern trade account to the smallest traditional channel. Meanwhile, Malee has been in the business since 1964 and is renowned for its staunch drive in product development and innovation. The complementary expertise of the two companies are expected to contribute to the smooth operation and success of the joint venture.
Along with the recent acquisition of UK-based company Quorn Foods, the joint venture will expand Monde Nissin’s product portfolio in line with its thrust to build a diversified global food business.
Malee’s CEO and Chairman Chatchai Boonyarat said that the Philippine beverage market shows strong growth. “We see a great opportunity in the Philippines. The beverage market there has fewer products than Thai market, while total value of its beverage market, excluding alcohol drinks, is worth around 200 billion baht with an average annual growth of 8 per cent,” Boonyarat said.
Henry Soesanto, CEO and executive vice president of Monde Nissin Corp, said that the joint venture strengthens both companies. “While Malee has expertise in production and innovation, we have deep understanding of the needs of Filipino consumers along with strength in marketing, brand building, and distribution network nationwide,” Soesanto cited.
Under the joint venture, MMBC expects to launch products in the Philippine market by 2016.
Read more about Malee by visiting their website, www.malee.co.th.