Instant coffee and coffee-flavoured energy drinks continue to provide the lion’s share of the Vietnamese retailer’s revenues, but half year sales stand at 35% of its annual $106m target
The Vinacafe instant coffee and Wake-up 247 coffee-flavoured energy drink products contributed combined sales of $34m | Photo credit: Vinacafe Bien Hoa
Vietnamese instant coffee producer Vinacafe Bien Hoa achieved revenue growth of 19% in the first half of 2022, reaching VND 950bn ($40.6m).
The Vinacafe instant coffee and Wake-up 247 coffee-flavoured energy drink products contributed combined sales of VND 800bn ($34m), with the remaining sales coming from cereal sachets.
For the full year, Vinacafe is targeting revenues of VND 2.5-2.9trn ($106m-$124m) and profits of VND 500-600bn ($21m-$26m), both of which would require an exceptional second half of 2022.
The company said it will continue to promote coffee-based beverages and roll out new products to meet ‘the unmet needs of Vietnamese customers’.
Last year, sales and profits were VND 2.2trn ($94m) and VND 430bn ($18m) respectively.
Vinacafe Bien Hoa was established in 1983, having operated as Coronel Coffee Factory from 1968. The company opened the first instant coffee processing factory in the whole Indochina region in 1969.
Masan Beverage, a subsidiary of Vietnamese conglomerate Masan Group, owns 98.79% of Vinacafe. In August 2022 Masan Group increased its majority stake in Vietnamese Coffee chain Phuc Long Coffee & Tea, taking its ownership to 84% in a deal that values the Vietnamese coffee chain at $453m.
Vietnam is the second largest producer of coffee in the world after Brazil, with Robusta accounting for approximately 95% of its annual output of 30.1 million 60kg bags.
In January 2022 the Vietnam Coffee and Cocoa Association outlined plans to double the value of Vietnam’s coffee exports to $6bn by 2030 by increasing the proportion of processed coffee it exports, including instant brands, from 10% to at least 25% by 2030.