OUR SUCCESS STORY:
“Conducting a highly customized market study on passion fruit plantation and advising on Vietnam market entry strategies for a global leading processor of passion fruit juice.”
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- Client: Medium-sized multinational passion fruit wholesale processor based in Ecuador
- Industry:Agribusiness/ Food processing
- Product Offerings:Passion fruit juice, concentrated fruit juice, concentrated clarified juice
- Global presence:Products present in more than 40 countries
In late 2018, the multinational passion fruit juice maker was having some trouble with its long-tradition passion fruit feedstock based in Latin America (Ecuador and Peru), resulting from the reducing yield, which was attributed to various reasons. The Client sought an alternative source of feedstock and happened to know that Vietnam was a new emerging grower and supplier of passion fruit, though of a different genre (purple-peeled). The Client wanted to study about the Vietnamese passion fruit’s quality (scent and taste), plantation area, output and yield, seedlings, farmers’ livelihood, and above all the ability to secure sufficient feedstock for Client’s business objective. Moreover, the Client preferred a “go-to-market” approach to market study, not the “desk research”. This required the researchers to go to each and every major farms in the key Central Highland provinces. None of the Vietnam-based market research firms the Client had approached could do this.
Above all, the Client was not sure of a right market entry strategy, which could be an acquisition of an existing local player, a new joint-venture with a local established player or a 100% FDI green field operation (subsidiary).
Solution & Outcome
Based on the roughly 20 big questions raised by the Client for the Vietnam market study, we customized an optimal scope of work, which included also market entry advisory. The delivered market study helped answer all the questions the Client had, plus provided a big picture of related subject matters without necessarily conducting a full-scope market study, which normally would take much more time and cost a lot more. The study also provided a thorough scanning of potential targets for acquisitions and joint-venture partnership. Unfortunately, none of targets came close to the Client’s taste, and they had to go for the 100% FDI subsidiary option, with which we also assisted a great deal throughout the process, including mapping the suitable location for factory building, selecting the general MEP contractor, connecting with major passion fruit traders/pre-processors and collectors, working with the engaged law firm, liaising with the provincial authorities and industrial park’s steering committee.
Economic & Social Impacts
The FDI project helped greatly in realizing Gia Lai province’s goal of making passion fruit a very top agricultural produce. It also enhanced the national and provincial passion fruit juice-making industry, and ensure the stable livelihood of hundreds of thousands of farmers of Gia Lai and neighboring Central highlands provinces.