A Phuc Long kiosk opened at A VinMart+ store. The Sherpa Company, a subsidiary of Masan Group Corporation, today, May 24, announed that it had acquired a 20% stake in Phuc Long Heritage Company, the owner of Phuc Long tea and coffee store chain, for US$15 million – PHOTO: VNA
HCMC – The Sherpa Company, a subsidiary of Masan Group Corporation (MSN), today, May 24, announced that it had acquired a 20% stake in Phuc Long Heritage Company, the owner of the Phuc Long tea and coffee store chain, for US$15 million.
Phuc Long Heritage was established three days ago, operating in the tea and coffee business. Its charter capital is VND260 billion. Of the amount, Lam Boi Minh, who founded the Phuc Long tea and coffee chain, owns a 94.5% stake and acts as the general director, reported VnExpress.
As part of the deal, VinCommerce, another subsidiary of Masan Group, will cooperate with Phuc Long to develop Phuc Long kiosks at over 2,200 VinMart+ convenience stores nationwide to bring Phuc Long-branded tea and coffee drinks to more consumers.
According to VinCommerce, the tea and coffee market value in Vietnam reaches an estimated US$2.3 billion and is expected to grow over 10% every year. Branded tea and coffee retail chains only account for 25% of the market, including major brands such as Highlands Coffee with over 300 stores, The Coffee House with over 150 stores and Starbucks with just over 70 stores.
Given a young consumer base and the demand for experiencing new services among young people, Masan and Phuc Long believe that branded tea and coffee chains would grow strongly in the next decade.
Danny Le, general director of Masan Group, said that four Phuc Long kiosks had been opened on a trial basis at VinMart+ stores in Thu Duc City. Masan and Phuc Long are set to open 1,000 similar kiosks in the next 12 months.
By 2025, the food and drink chain under this deal is expected to contribute revenue of US$500 million to The CrownX, a member company of Masan, he added.
Also, as part of the deal, the kiosks will share 20% of its revenue with VinMart+. Based on the business results of the piloted kiosks, Masan predicted that the deal will see the profit margin of all VinMart+ stores rising over 4% against the current level.
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