MILAN – Following the opening of a pilot Hi-Café in Ho Chi Minh City last year, Vietnamese dairy giant Vinamilk plans now to expand this single outlet into a chain. The company’s board recently sought shareholders’ permission to add nine new businesses to its portfolio, including beverage and food sales. It plans to open more Hi-Café outlets starting this year.
“The store has been a prototype, and Vinamilk has been looking for suitable business methods for the chain including to partner up a fit partner operating in the same business,” the statement noted. “From 2020, Vinamilk plans to enlarge the chain in many places across the country.”
Hi-Café will come up against local brands with the likes of Highlands Coffee (336 outlets), The Coffee House (150), Phuc Long, and Trung Nguyen, and foreign brand Starbucks (67).
Vinamilk, which has more than half of Vietnam’s dairy market, targets VND59.6 trillion ($2.6 billion) in revenue and VND13 trillion ($565 million) this year, up 5.7 per cent and 1.6 per cent on-year, respectively.
Additionally, the firm will pay dividends in two terms with a 30 per cent rate and the issuance of bonus shares at a 5:1 ratio. Its shareholder meeting is expected to be organised on June 26.