In a move designed to strengthen its position in Asia Pacific, Mondelez International has announced the acquisition of an 80% stake of Kinh Do Corporation’s snack business in Vietnam for $370 million.
Mondelez said it would leverage Kinh Do’s manufacturing capabilities and comprehensive distribution network, as well as adding well-loved brands include Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers to its own regional brand portfolio including Oreo cookies, Ritz crackers and Cadbury chocolates.
“Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market”, said Tim Cofer, Executive Vice President and President, Asia Pacific and Eastern Europe, Middle East & Africa for Mondelez International. “Kinh Do is a successful Vietnamese business with decades of heritage. Its deep understanding of local consumers, the commercial environment and complex routes to market in Vietnam, provide a strong foundation to grow the business”.
Commenting on the acquisition, Tran Kim Thanh, Chairman of Kinh Do Corporation, said: “Today’s announcement is also firm recognition of Kinh Do as a well-loved brand that has earned the trust of consumers over the years. The proposed transaction is aligned to our business direction and will help us to successfully deliver our new strategy”.
The deal is expected to close in the second quarter of 2015, subject to approval at the Kinh Do Corporation Extraordinary General Meeting and certain other regulatory requirements.