Orion teams up with Dutch Mill to tap Vietnamese dairy market

South Korea's Orion Corp. announced on Tuesday its strategic collaboration with Thailand's dairy behemoth, Dutch Mill Co., marking its ambitious entry into Vietnam's growing dairy drink segment.

The partnership was solidified last December when Orion's Vietnamese arm secured an exclusive deal to vend Dutch Mill's product lineup in Vietnam.

Established in 1984, Dutch Mill dominates the Thai market with a commanding 70% market share and boasts exports to a vast network spanning 20 countries.

This month, Vietnamese consumers will see the debut of Proyo! and Choco IQ, two flagship brands from Dutch Mill, with Orion charting out plans for the roll-out of additional products in the near future.

According to data from 2021, Vietnam's dairy market has swelled to a notable 7 trillion won ($5.3 billion), reflecting its potential.

Further bolstering this potential is Vietnam's annually increasing population of about 1.5 million newborns and an evident surge in the demand for premium dairy beverages, as outlined by Orion.

"It's significant that our Vietnam subsidiary has found new growth drivers through new categories. Armed with our robust sales strategies, we're poised to rapidly establish a foothold and aim to cement our position as the premier food enterprise in the region," said an Orion representative.

Write to Ji-Yoon Yang at yang@hankyung.com