Marubeni has announced the start of an instant coffee manufacturing and sales business in Vietnam. It aims to begin commercial operation of the business in 2020, which will mainly supply the Chinese and ASEAN markets where demand for instant coffee is growing.
Marubeni has established Iguacu Vietnam Co., Ltd., an instant coffee manufacturing and sales company in Ba Ria-Vung Tau province.
Construction will begin immediately upon obtaining all necessary permits and commercial operation and supply will commence in 2022. Annual production capacity will begin at 16,000 tons.
Having a total registered investment of $115 million, the project has been granted investment license by the People's Committee of Ba Ria-Vung Tau in mid-February.
Marubeni said that worldwide instant coffee demand is expected to increase continuously as a result of economic expansion.
In particular, demand in China and ASEAN with more than two billion population altogether, is growing at a rate of more than five per cent per year, which is far beyond the world average of two per cent.
Vietnam is the second biggest coffee producing country next to Brazil and the biggest producing country of Robusta Coffee, which is the predominant variety of instant coffee.
Therefore, Marubeni saw Vietnam is the most suitable country to produce instant coffee for sale to China and ASEAN.
Over 46 years, Marubeni has accumulated knowledge and experience in the production and sale of instant coffee in Brazil.
When Iguacu Vietnam commences commercial operation in 2022 and considering the planned capacity expansion of the company in Brazil in 2020, Marubeni will be the world’s biggest supplier in the B-to-B (business to business) instant coffee market with a total annual production of 40,000 tons.
Marubeni looks forward to supplying its instant coffee worldwide via the two biggest coffee producing countries in the world with our technology and know-how acquired over years of experience, it said.
Marubeni has started its business in Vietnam for nearly 30 years, focusing import and export of goods, infrastructure development. Marubeni is currently the leading exporter of Vietnamese products such as seafood, coffee and also a major distributor of commodities as cereals, petrochemical products.