21:42 (GMT +7) - Friday 22/11/2019

Business

Bach Hoa Xanh & FrieslandCampina team up

Released at: 16:21, 16/10/2019

Bach Hoa Xanh & FrieslandCampina team up

Photo: MWG

MWG's grocery chain partners with global dairy giant as it aims to have 2,000 stores by 2020.

by Minh Do

Bach Hoa Xanh, the Mobile World Investment JSC (MWG)’s grocery chain, announced on October 15 in Ho Chi Minh City a strategic cooperation agreement with FrieslandCampina, one of the leading dairy companies in the world and the owner of famous brands such as Fristi, Yomost, Ovaltine, and Dutch Lady.

Cooperation with major partners is one of Bach Hoa Xanh’s preparatory steps for rapid expansion to thousands of points of sale in the years to come.

According to MWG, revenue from FrieslandCampina Vietnam’s goods at Bach Hoa Xanh outlets tripled in just one year.

“We are very impressed by the recent growth of the chain and identified Bach Hoa Xanh as an important strategic partner of group,” Mr. Hein Schumacher, Global CEO of FrieslandCampina, said at the signing ceremony. “This partnership will certainly multiply the strength of Bach Hoa Xanh in expanding rapidly and serving consumers better in 2020.”

“We are ready to open up to 1,000 stores next year, bringing the total to 2,000, and we appreciate the companionship of FrieslandCampina,” said Mr. Tran Kinh Doanh, General Director of Bach Hoa Xanh. “This will undoubtedly be a premise for greater cooperation following Bach Hoa Xanh’s growth.”

According to the Vietnamese retailer, with one side being a “giant” in the world’s dairy industry earning tens of billions of euros in revenue and one side being a retailer of great potential, the partnership promises to bring a lot of benefits to customers, including better prices and more diverse choice.

Although it has only recently began retailing fresh goods and consumer foods, Bach Hoa Xanh has been achieved significant growth. In the first eight months of this year, revenue grew 158 per cent over the same period last year. Average monthly revenue per store stands at more than VND1.5 billion ($64,625), with more than 11.5 million customers served in August.

Such impressive figures will continue to rise and be stable in the future, as Bach Hoa Xanh continues its growth. In the next few years, the chain’s revenue is expected to be equal that of MWG’s thegiodidong.com and Dien may Xanh combined.

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