Malee Group Invests 330 MB in Acquisition Deal for Vietnamese Beverage Producer to Expand Production in SE Asian Market
23 January 2018
Bangkok - January 23, 2018: Malee Group PCL (MALEE) is moving confidently ahead on its journey to become a Health-Driven Global F&B Firm by investing 330 million baht in its first foreign acquisition deal of Long Quan Safe Food Joint Stock Company (LQSF), a major beverage producer in Vietnam. The acquisition will increase Malee's production base for emerging markets in Southeast Asia, helping to drive the proportion of the company's foreign revenue, currently at 40%, to 60% over the next three years.
Mr. Opas Lopansri, Senior Vice President International Business of Malee Group, said, 'With our acquisition of Long Quan Safe Food, a leading Vietnamese beverage manufacturer, we are investing 330 million baht to take 65% ownership of the company. This will enhance our competitive advantage in serving the needs of middle-to-lower income consumers in the ASEAN region. This acquisition is part of Malee's strategic move to tap into overseas markets, helping to pave the way for the company to achieve our mission of becoming a Health-Driven Global F&B Firm by 2021.'
For Malee Group, Long Quan Safe Food's strengths are a good fit: 1) Reputation and credibility, as LQSF has been established for 25 years and its products are well accepted among Vietnamese consumers; 2) Integrated production that can produce 300 million liters of beverages per year in a high-quality and cost-effective manner. LQSF produces a wide variety of products including water, carbonated soft drinks and jelly drinks, in a range of packaging formats such as cans, PET bottles, plastic cups, and glass bottles. The acquisition will increase Malee's total production capacity to 630 million liters per year; 3) Competitive pricing, which is essential for success in the ASEAN region's emerging markets; and 4) Wide-coverage distribution in Vietnam, which will set Malee apart from its competitors, with a wide distribution network that reaches almost all regions of Vietnam and is especially strong in the southern part of the country.
According to Mr. Opas, 'Malee Group has been establishing partnerships overseas over the past three years to tap the tremendous growth potential of the regional beverage market. For emerging markets in ASEAN, we have partnered with local companies that not only understand what consumers want, but also have strong distribution capabilities covering the majority of their respective markets. We currently have joint ventures in the Philippines as Monde Malee Beverage Corporation, and in Indonesia as PT Kino Malee (Indonesia). By acquiring this stake in LQSF, we continue to utilize the strengths of our partners in each country to build a strong regional network, which will in turn allow us to strengthen the competitiveness of our joint ventures as part of our ASEAN strategy, ultimately accelerating our growth in the region.
'We are confident that this acquisition will greatly benefit our international business, as we establish LQSF as a manufacturing hub serving mass market consumers in Vietnam, Thailand, Philippines, Indonesia, and our other key markets in the ASEAN region. We expect this acquisition to help increase the proportion of our revenue from foreign markets, and consider our international business to be the key growth engine for Malee Group moving forward,' concluded Mr. Opas.