20 years is not extended but also not trivial for the formation and development of a corporation. From a small production facility with sales of only 10 billion in 1993, Kinh Do sales in 2013 were 500 times more than the first year. For Kinh Do, the development journey has also left many imprints which will help the Group continues its journey of pursuing “the taste of happiness”.
20 years remark
Kinh Do Corporation (KDC) started out as just a small factory established in 1993. It was called Kinh Do Food Processing and Construction Company at that time. It was a small factory with only 70 workers and invested capital of 1.4 billion specialized in manufacturing and trading snacks. This bold but strategic decision was an important stepping stone for the development of Kinh Do thereon. Sales in the first year of Kinh Do reached only VND 10 billion.
Afterwards, in 1994, KDC increased its charter capital to 14 billion and imported a production line from Japan. From 1996 to 2002 marked the rapid development of Kinh Do as it consecutively built more plants and invested in lines producing cookies cakes, fresh bread, moon cakes, crackers, cakes, cream, and yogurt.
In 2001, Kinh Do started to reach out to the world market by boosting exports to the United States, France, Canada, Germany, Taiwan, Singapore, and Japan ... At the same time, also in this year, Kinh Do established North Kinh Do Food Processing JSC marking the expansion of the company and the journey to bring the taste of happiness to consumers across the country.
Because of its internal resources and brand name, Kinh Do also noted its pioneer position in M&A fields with a series of deals in cooperation with both local and international partners. After 10 years since the date of establishment, Kinh Do once again resonated with the acquisition of Wall's ice cream factory from Unilever in 2003 in order to expand production and product portfolio. With the ownership of Wall's ice cream factory, Kinh Do become one of the first local companies in the country acquired a factory from a multinational company. This confirmed the pioneer and dominant position of Kinh Do. As of date, Ki Do still held 60% market share of ice cream in the value and premium segment. Meanwhile Ki Do also expanded into niche private market with products yogurt for kids, and ice cream with the traditional taste suitable with the taste of Vietnam consumers.
Vice President of Vietnam awarded Kinh Do with the Second Class Labor Medal
In 2004, recognized the ability to raise capital on the stock market, North Kinh Do Food Processing JSC was officially listed on HOSE. This is a stepping-stone for the listing of Kinh Do Corporation later. Upon North Kinh Do listing success, Kinh Do also officially listed in the stock exchange with stock symbol of KDC. KDC shares listed on the trading floor led to many great changes. Kinh Do continuously received large investments from investment funds which marked the transition of Kinh Do to a period of growth acceleration expanding to the current scope.
In 2006, Kinh Do Binh Duong factory commenced construction with total investment capital of VND 660 billion and was put into operation in 2008.
The next milestone marking the development path from 2010 to 2012 was the merger of Kinh Do Corporation, North Kinh Do (NKD) and Ki Do Company and afterwards Vinabico. During this period, KDC also signed a strategic partnership with Ezaki Glico Company of Japan.
Over the past 20 years of development, Kinh Do products and brands has become increasingly rich and diverse to meet the needs of customers from the everyday confectionery products, products for enjoyment, or gifting Tet occasion to ice cream, milk, dairy products. The company is also expanding into essential food. Kinh Do will continue to write its stories of bringing the taste of happiness to consumers during its upcoming journey.
By 2013, after 20 years of development, Kinh Do now achieved a distribution network of 300 distributors with over 200,000 retail points of sale and a cold distribution channel across the nation. The company also owned 4 plants and 5 food subsidiaries all over Vietnam . In addition, Kinh Do products were able to penetrated and widely distributed to more than 30 countries around the world. Along with the development of production and distributing activities, Kinh Do also made much contribution to the development of the country sharing the taste of happiness to the community through practical social programs. After 20 years with the mission of bringing the taste of happiness to serve consumers, Kinh Do became a National Brands, a symbol of Vietnam high quality product, the first choice of consumers. Along with the growth in scale, the company has built steady steps for the next growing phase bringing Kinh Do brand abroad.
Currently, the market share of Kinh Do products are as of the following: cookies (butter cookies) accounted for 27%, crackers accounted for 56%, fresh bread accounted for 55% and especially mooncake makes up 76% for each respective market. During 20 years of operation, Kinh Do has maintained an average growth rate of 20-30% per year and is well regarded as the most efficient companies in the confectionary industry in Vietnam.
The charter capital of the Group increased continuously over the year from VND1.4 billion in 1993 to nearly VND 1,700 billion by the end of quarter 3/2013. Kinh Do revenue growth rate has been stable around 15-20% annually. The categories that contributed the most to company revenue are cracker, followed by ice cream, yogurt, cake, cake and bread.
One of KDC successes is the ability to control raw material costs which helped gross profit margin increased significantly over the years. The result is the increasing in production efficiency for the company. While average input prices dropped and selling price remained stable, the ability to control production cost helped gross profit margin of Kinh Do soared to 44% in 2012. In addition, with diverse product portfolio availabled in all segments helped the Group to take the leading position in the confectionery market.
Planning for the future
Continuing with the success achieved during the past 20 years, Kinh Do will maintain its focus on core business following the “Food and essential products” ( Food & Flavor ) strategy.
With the set orientation, in addition to diversify within the foodstuff industry, Kinh Do will focus on daily essential products. Furthermore, the Group will continue to pursue its M&A strategy targeting companies in the food industry and promote cooperation foreign partners. In the future, Kinh Do will launch a number of new products aiming to serve the basic essential consumers needs. Kinh Do will also focus on the development of key products to maximize the efficiency of its distribution system and investment on brands.
Besides the successes already achieved, Kinh Do always uphold social responsibility, the lives of its officials and employees and the interests of consumers as well as investors. This was a crucial factor that helped to build the brand and image of Kinh Do today. In its new journey, the management of Kinh Do Corporation expected that the company will expand internationally and the brand will be everlasting.
According to VietStock