Sweet and Savoury Snacks - Vietnam

Euromonitor International : Country Sector Briefing

December 2009
Sweet and savoury snacks Vietnam

List of Contents and Tables

Headlines ................................................................................................................................................................. 1

Trends ...................................................................................................................................................................... 1

Competitive Landscape .......................................................................................................................................... 1

Prospects .................................................................................................................................................................. 2

Sector Data .............................................................................................................................................................. 3

Table 1 Sales of Sweet and Savoury Snacks by Subsector: Volume 2004-2009 ............................ 3
Table 2 Sales of Sweet and Savoury Snacks by Subsector: Value 2004-2009 ............................... 3
Table 3 Sales of Sweet and Savoury Snacks by Subsector: % Volume Growth 2004-
2009 ................................................................................................................................... 3
Table 4 Sweet and Savoury Snacks Company Shares 2004-2008 .................................................. 4
Table 5 Sweet and Savoury Snacks Brand Shares 2005-2008 ........................................................ 4
Table 6 Forecast Sales of Sweet and Savoury Snacks by Subsector: Volume 2009-
2014 ................................................................................................................................... 6
Table 7 Forecast Sales of Sweet and Savoury Snacks by Subsector: Value 2009-2014 ................. 6
Table 8 Forecast Sales of Sweet and Savoury Snacks by Subsector: % Volume
Growth 2009-2014............................................................................................................. 6
Summary 1 Other Sweet and Savoury Snacks: Product Types ............................................................. 6

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SWEET AND SAVOURY SNACKS IN VIETNAM

HEADLINES
• Sweet and savoury snacks grow by 8% in volume terms to reach 39,800 tonnes in 2009
• Extruded snacks remains the key category with nearly 42% share of total sales revenue in 2009
• Fruit snacks is the fastest growing category in value terms with a 24% increase in retail sales
• PepsiCo Inc continues to expand its presence within sweet and savoury snacks
• Local companies Tan Tan Food & Foodstuff Co and Tuyen Ky Co Ltd maintain leading positions with
retail value shares of 10% and 8% respectively
• Value sales are expected to rise at a CAGR of 9% over the forecast period, reaching VND 6,100 billion in
2014

TRENDS
• Sweet and savoury snacks still experienced strong positive growth in 2009 both in terms of volume and
value sales. Demand for these products remains strong, even in relatively small categories such as fruit
snacks. Value growth continues to outweigh volume growth, reflecting unit price increases caused by
inflation and rising raw material costs. Extruded snacks remain the largest category, accounting for 42% of
retail value sales, followed by other sweet and savoury snacks.
• The growth rate of sweet and savoury snacks in 2009 was slower than that of 2008 and the review period
average for every category. The main reason for this slowdown is the ongoing recession, which has created
a climate of economic uncertainty. Consumers are being thriftier, spending less on non-essential impulse
and indulgence products, including sweet and savoury snacks. The economic difficulties also forced
companies cut their costs, particularly their marketing budgets. Fewer promotional campaigns or new
product developments were implemented in 2009, another reason for the growth slowdown.
• Of all products within sweet and savoury snacks, chips/crisps registered the fastest volume growth rate in
2009, at 12%. This remains a relatively niche category which particularly targets teenagers and young
people. These consumer groups are becoming more influential, increasing in number and developing more
sophisticated demands. In addition, they are the groups which are most affected by advertising, with high
exposure to media through various channels. Sales revenues of the chips/crisps category are also boosted by
the level of activity of the two leaders, namely An Lac Co Ltd and PepsiCo Inc. An Lac has always been
the leader in this category with two key brands, Zon Zon and Zich Zich, while PepsiCo has gained a stable
position after just three years in the category with its Poca brand.
• During 2008-2009, the rapid increase in the price of cooking oil caused the unit price of some categories
such as chips/crisp, extruded snacks and nuts to grow significantly. Other sweet and savoury snacks was the
category with the lowest price increase in 2009, at 5%. One reason for this was that the competition in this
category is more intense than others with many local companies competing for share, resulting in price
restraint. The rise in unit price in other sweet and savoury snacks was thus smaller than other categories.

COMPETITIVE LANDSCAPE
• The sweet and savoury snacks category in Vietnam has continued to develop, with an increasingly diverse
range of products as well as increased competition. Local companies such as Tan Tan Food & Foodstuff
Co, Tuyen Ky Co Ltd, Kinh Do Corp and Bien Hoa Confectionery Corp (Bibica) still holding leading
positions. That said, some leading international companies are present, including Philippines-based
Liwayway Food Industry Co Ltd with its Oishi brand.
• In 2009, Tan Tan Food & Foodstuff Co maintained its leading position with a retail value share of 10%.
Although the company is focused on the nuts category, which is significantly smaller than extruded snacks
and other sweet and savoury snacks, its dominance in nuts with 61% of sales means that it leads the sector
overall. Traditionally, roasted peanuts have always been the key products of Tan Tan, synonymous with the

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company’s image. In recent years, Tan Tan has developed a wider range of products such as green peas and
hazelnuts, which are more diverse and aligned with the developments in demands of consumers.
• In 2006, more than 15 years since it first entered the Vietnamese market, PepsiCo Inc officially entered the
sweet and savoury snacks category with its Poca brand, focused on the chips/crisps and nuts categories. The
launch of Poca had been well prepared, and it is positioned as the first move in a long-term strategy by
PepsiCo to conquer the sweet and savoury snacks category in Vietnam, as the company has done in soft
drinks. Prior to the launch of Poca, PepsiCo Inc had successfully developed a large potato plantation in Lam
Dong province, intended to exclusively supply the raw materials for its chips/crisps production.
Additionally, a 4 hectare modern factory was established in Binh Duong province to produce the Poca
brand. By 2008, Poca had climbed to the second position in the chips/crisp category with a 20% value
share, just behind the traditional leader Zon Zon from An Lac Co Ltd. Poca Nutz from PepsiCo Inc also
gained some success in the nuts category, with robust revenue growth each year to again reach second
position.
• The global health and wellness trend is having a growing impact across all packaged food categories in
Vietnam, and companies operating in sweet and savoury snacks are also paying more attention to this issue.
Most of the big companies, including Tan Tan Food & Foodstuff Co, Tan Tan Food & Foodstuff Co,
PepsiCo Inc and TM Vina Mit Ltd Co (Vinamit) are seeking to present their products as ‘fresh’, ‘natural’,
‘original’ or ‘healthy’. Another strategy that companies are increasingly following is to expand the product
range, moving to a more upmarket position. The development of more premium products targeting higher
income groups is expected to result in increased profitability and a better brand image.
• The most intensive advertising campaigns in sweet and savoury snacks were from PepsiCo Inc, to promote
its Poca lines. The company employed traditional strategies such as prize draws for customers, with prizes
such as mobile telephones, MP3 players and free packs of the Poca brand. With its rich experience in the
implementation of marketing campaigns, PepsiCo ensured its campaign was widely publicised across
various media channels, including television, radio, newspapers, billboards, promotional events and the
internet. This campaign’s success was reflected in the growing shares of PepsiCo Inc’s brands.

PROSPECTS
• In general, sweet and savoury snacks in Vietnam is predicted to continue to perform well over the forecast
period. The average per capita consumption of snacks is still lower than in neighbouring countries such as
Thailand, Singapore or Taiwan. Improvements in disposable income and living standards will be the key
driving force behind the growth in demand for sweet and savoury snacks, along with evolving consumer
lifestyles. The current recession will have a slight impact in that value growth will be slower at the start of
the forecast period, before accelerating moderately. Constant value growth, however, will be substantially
faster than the rate seen over the review period
• In the forecast period, extruded snacks are expected to grow at a slower rate than other categories in volume
terms. Their share of total sales is larger than other product types, and their growth rates are projected to
gradually slowdown in the next few years to reflect this product maturity. Conversely, growth will be led by
other categories such as chips/crisps and nuts, thanks to increased product awareness and general
acceptance among the younger generation. The participation of some large and progressive companies such
as TM Vina Mit Ltd Co (Vinamit), Kinh Do Corp, Tan Tan Food & Foodstuff Co and PepsiCo Inc in those
segments will be also a major force to push sales forward.
• In 2008, local companies still accounted for the larger share of sweet and savoury snacks sales. There are
only three foreign companies present among the top ten operators, namely Liwayway Food Industry Co
Ltd, Triko Foods Co and Ken Ken Vietnam. Large international companies such as Procter & Gamble
Vietnam Ltd and PepsiCo Inc do not yet hold strong overall positions. It is predicted that this ratio will not
change rapidly over the forecast period. Local companies have the advantage of understanding local tastes
and demand. Furthermore, they have built strong distribution networks, which are crucial in this category.
Thus, it will take some time for international companies to achieve a more dominant position.
• Small grocery retailers will remain the most important distribution channel for sweet and savoury snacks,
thanks to the convenience they offer and their continued expansion throughout Vietnam. Although the
supermarkets/hypermarkets channel has been growing quickly in recent years, its distribution share for
snack products has only seen moderate growth, due to the products’ characteristics, as they tend to attract

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younger consumers and impulse purchasers rather than adults undertaking weekly shopping trips in large
retailers.

SECTOR DATA
Table 1 Sales of Sweet and Savoury Snacks by Subsector: Volume 2004-2009

tonnes
2004 2005 2006 2007 2008 2009

Fruit snacks 344.7 413.7 492.3 571.0 639.6 713.1

Chips/crisps 924.9 1,057.0 1,255.2 1,437.2 1,616.9 1,810.9
Extruded snacks 13,712.7 15,906.7 17,815.6 19,775.3 21,555.0 23,387.2
Tortilla/corn chips - - - - - -
Popcorn - - - - - -
Pretzels - - - - - -
Nuts 3,208.6 3,728.0 4,301.4 4,912.7 5,502.2 5,997.4
Other sweet and savoury 5,259.2 5,679.9 6,191.1 6,841.1 7,456.8 7,904.3
snacks
Sweet and savoury snacks 23,450.0 26,785.4 30,055.5 33,537.3 36,770.5 39,812.9
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates

Table 2 Sales of Sweet and Savoury Snacks by Subsector: Value 2004-2009

VND billion
2004 2005 2006 2007 2008 2009

Fruit snacks 30.3 37.1 46.4 57.0 70.7 87.4

Chips/crisps 80.1 98.2 120.8 144.9 173.2 204.4
Extruded snacks 662.2 824.4 996.6 1,205.9 1,423.0 1,636.4
Tortilla/corn chips - - - - - -
Popcorn - - - - - -
Pretzels - - - - - -
Nuts 238.0 290.3 357.1 442.8 540.2 648.3
Other sweet and savoury 821.6 879.1 958.2 1,054.0 1,191.0 1,322.1
snacks
Sweet and savoury snacks 1,832.2 2,129.1 2,479.1 2,904.7 3,398.2 3,898.5
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates

Table 3 Sales of Sweet and Savoury Snacks by Subsector: % Volume Growth 2004-2009

% volume growth
2008/09 2004-09 CAGR 2004/09 TOTAL

Fruit snacks 11.5 15.6 106.9

Chips/crisps 12.0 14.4 95.8
Extruded snacks 8.5 11.3 70.6
Tortilla/corn chips - - -
Popcorn - - -
Pretzels - - -
Nuts 9.0 13.3 86.9
Other sweet and savoury snacks 6.0 8.5 50.3
Sweet and savoury snacks 8.3 11.2 69.8
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates

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Sweet and savoury snacks Vietnam

Table 4 Sweet and Savoury Snacks Company Shares 2004-2008

% retail value rsp

Company 2004 2005 2006 2007 2008

Tan Tan Food & 7.9 8.5 8.7 9.2 9.7

Foodstuff Co
Tuyen Ky Co Ltd 10.7 10.3 9.6 8.5 7.6
Liwayway Food Industry 4.9 5.4 5.9 6.6 7.3
Co Ltd
Special Aquatic Joint- 6.2 5.3 5.3 4.9 5.0
stock Co (SEASPIMEX-
VIETNAM)
Bien Hoa Confectionery 3.2 3.9 4.7 4.6 4.4
Corp (Bibica)
Kinh Do Corp 2.6 2.8 3.1 3.8 4.3
Triko Foods Co 4.5 4.1 3.6 3.6 4.2
Ken Ken Vietnam 5.0 5.2 5.3 3.8 3.5
Kim Phong Co 3.1 2.9 2.9 3.0 2.7
Cholon Investment & 3.6 2.9 2.6 2.5 2.5
Import-Export Co
(CHOLIMEX)
Phong Hien Co 2.8 2.8 2.5 2.5 2.2
Haiha - Kotobuki JV Co 2.5 2.3 2.6 2.3 2.1
Vinabico - Kotobuki JV 1.6 1.7 1.8 2.1 2.1
PepsiCo Inc - - 0.8 1.5 1.7
An Lac Co Ltd 1.6 1.7 1.6 1.7 1.7
TM Vina Mit Ltd Co 1.3 1.3 1.4 1.5 1.6
(Vinamit)
Tecaworld Food 1.5 1.5 1.5 1.5 1.6
Processing Joint
Venture Co
Procter & Gamble 0.5 0.7 0.9 1.2 1.5
Vietnam Ltd
Tuong Lai Co 2.2 2.1 1.9 1.8 1.4
Trang An Confectionery Co 0.9 0.8 0.9 1.0 1.3
Orion Food Vina Co Ltd - - 0.6 0.8 0.8
Orex Co 0.9 0.8 1.0 1.1 0.7
Zerky Co 1.8 1.3 0.8 0.7 0.6
Viet Hoa Co 1.7 1.2 0.9 0.8 0.6
Tai Tai Co 0.5 0.5 0.5 0.5 0.6
Four Seasons (Vietnam) 0.4 0.4 0.4 0.4 0.5
Co Ltd
Dong Nai Import Export 0.4 0.4 0.4 0.4 0.4
Agriculturals & Foods Co
Nhat Anh trading Pt 0.4 0.4 0.4 0.4 0.4
Enterprise
Hanh Dung Co Ltd 0.4 0.4 0.4 0.4 0.4
Hoang Ky Co 0.2 0.2 0.2 0.3 0.3
Hong Shun Foods Co Ltd 0.2 0.2 0.2 0.2 0.2
Lubico Biscuit Enterprise 0.3 0.2 0.2 0.2 0.2
Gua Wang Co 0.2 0.2 0.2 0.2 0.2
Tuong Loan Chips Good Co - - 0.1 0.1 0.1
Vitafood - Viettan Co Ltd 0.3 0.4 0.4 0.2 0.1
Nha Be Import Export Co 0.2 0.1 0.1 0.1 0.0
Kinh Do Food Processing - - - - -
& Construction Ltd Co
Others 25.6 26.8 25.4 25.8 25.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, Trade press, Company research, Trade interviews, Euromonitor International estimates

Table 5 Sweet and Savoury Snacks Brand Shares 2005-2008

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% retail value rsp

Brand Company 2005 2006 2007 2008

Oishi Liwayway Food Industry 5.4 5.9 6.6 7.3

Co Ltd
Tan Tan Tan Tan Food & 6.3 6.3 6.6 6.9
Foodstuff Co
Tuyen Ky Tuyen Ky Co Ltd 7.8 7.4 6.5 5.8
Bibica Bien Hoa Confectionery 3.9 4.7 4.6 4.4
Corp (Bibica)
New Choice Jelly Triko Foods Co 4.1 3.6 3.6 4.2
Sachi Kinh Do Corp 2.1 2.4 3.3 3.8
Seaspimex Special Aquatic Joint- 3.7 3.7 3.4 3.5
stock Co (SEASPIMEX-
VIETNAM)
Kim Phong Kim Phong Co 2.9 2.9 3.0 2.7
Ken Ken Ken Ken Vietnam 4.4 4.5 3.1 2.7
Cholimex Cholon Investment & 2.9 2.6 2.5 2.5
Import-Export Co
(CHOLIMEX)
Phong Hien Phong Hien Co 2.8 2.5 2.5 2.2
Bim Bim Haiha - Kotobuki JV Co 2.3 2.6 2.3 2.1
Vinabico-Kotobuki Vinabico - Kotobuki JV 1.7 1.8 2.1 2.1
Poca PepsiCo Inc - 0.8 1.5 1.7
Vinamit TM Vina Mit Ltd Co 1.3 1.4 1.5 1.6
(Vinamit)
NikNak Tecaworld Food 1.3 1.3 1.3 1.5
Processing Joint
Venture Co
Pringles Procter & Gamble 0.7 0.9 1.2 1.5
Vietnam Ltd
Tuong Lai Tuong Lai Co 2.1 1.9 1.8 1.4
Teppy Trang An Confectionery Co 0.8 0.9 1.0 1.3
Zon Zon An Lac Co Ltd 1.2 1.1 1.1 1.2
Ostar Orion Food Vina Co Ltd - 0.6 0.8 0.8
Orex Orex Co 0.8 1.0 1.1 0.7
Zerky Zerky Co 1.3 0.8 0.7 0.6
Viet Hoa Viet Hoa Co 1.2 0.9 0.8 0.6
Tai Tai Tai Tai Co 0.5 0.5 0.5 0.6
Kinh Do Kinh Do Corp 0.7 0.7 0.5 0.5
Zich Zich An Lac Co Ltd 0.5 0.5 0.5 0.5
TenTen Jelly Four Seasons (Vietnam) 0.4 0.4 0.4 0.5
Co Ltd
Donafood Dong Nai Import Export 0.4 0.4 0.4 0.4
Agriculturals & Foods Co
Tri ky 2 Nhat Anh trading Pt 0.4 0.4 0.4 0.4
Enterprise
Hanh Dung Jelly Hanh Dung Co Ltd 0.4 0.4 0.4 0.4
Hoang Ky Hoang Ky Co 0.2 0.2 0.3 0.3
Almond Nuts Hong Shun Foods Co Ltd 0.2 0.2 0.2 0.2
Lubico Lubico Biscuit Enterprise 0.2 0.2 0.2 0.2
Shack Nut Gua Wang Co 0.2 0.2 0.2 0.2
Tecaworld Tecaworld Food 0.2 0.2 0.2 0.1
Processing Joint
Venture Co
Chipsgood Tuong Loan Chips Good Co - 0.1 0.1 0.1
Pota-chi Vitafood - Viettan Co Ltd 0.4 0.4 0.2 0.1
Nhabexim Nha Be Import Export Co 0.1 0.1 0.1 0.0
Sachi Kinh Do Food Processing - - - -
& Construction Ltd Co
Others 33.9 32.5 32.5 32.4
Total 100.0 100.0 100.0 100.0
Source: Trade associations, Trade press, Company research, Trade interviews, Euromonitor International estimates

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Sweet and savoury snacks Vietnam

Table 6 Forecast Sales of Sweet and Savoury Snacks by Subsector: Volume 2009-2014

tonnes
2009 2010 2011 2012 2013 2014

Fruit snacks 713.1 784.4 859.0 936.3 1,015.8 1,087.0

Chips/crisps 1,810.9 2,046.3 2,332.8 2,636.0 2,952.4 3,247.6
Extruded snacks 23,387.2 25,141.3 26,901.2 28,649.7 30,225.5 31,736.7
Tortilla/corn chips - - - - - -
Popcorn - - - - - -
Pretzels - - - - - -
Nuts 5,997.4 6,597.1 7,322.8 8,164.9 9,144.7 10,287.8
Other sweet and savoury 7,904.3 8,418.0 9,091.5 9,910.0 10,851.5 11,936.6
snacks
Sweet and savoury snacks 39,812.9 42,987.2 46,507.2 50,297.0 54,189.9 58,295.7
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

Table 7 Forecast Sales of Sweet and Savoury Snacks by Subsector: Value 2009-2014

VND billion
2009 2010 2011 2012 2013 2014

Fruit snacks 87.4 95.7 104.3 113.1 122.2 131.3

Chips/crisps 204.4 225.8 254.1 288.4 328.8 376.4
Extruded snacks 1,636.4 1,775.5 1,917.5 2,051.8 2,174.9 2,294.5
Tortilla/corn chips - - - - - -
Popcorn - - - - - -
Pretzels - - - - - -
Nuts 648.3 726.1 816.8 923.0 1,052.3 1,204.8
Other sweet and savoury 1,322.1 1,388.2 1,506.2 1,664.3 1,847.4 2,069.1
snacks
Sweet and savoury snacks 3,898.5 4,211.2 4,598.9 5,040.6 5,525.4 6,076.1
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

Table 8 Forecast Sales of Sweet and Savoury Snacks by Subsector: % Volume Growth 2009-
2014

% volume growth
2013/14 2009-14 CAGR 2009/14 TOTAL

Fruit snacks 7.0 8.8 52.4

Chips/crisps 10.0 12.4 79.3
Extruded snacks 5.0 6.3 35.7
Tortilla/corn chips - - -
Popcorn - - -
Pretzels - - -
Nuts 12.5 11.4 71.5
Other sweet and savoury snacks 10.0 8.6 51.0
Sweet and savoury snacks 7.6 7.9 46.4
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

Summary 1 Other Sweet and Savoury Snacks: Product Types

Product type 2009% value share
Cup jelly 20.0
Beef snack 23.6

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Squid snack 16.2

Fish snack 12.4
Others 27.8
Source: Company research, Store checks, Trade interviews, Euromonitor International estimates

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