Retaining the investment in the national bubble tea brand ToCoToCo marks the beginning of $600 million VIG investment fund’s long-term commitment to developing the potential-rich F&B market, simultaneously helping ToCoToCo brand go global.
Assessment of the market potential for bubble tea and beverages in Vietnam
According to the forecasts from the German online platform Statista, Vietnam’s F&B market is estimated at a value of $30.39 billion in 2023, an increase of 9 per cent compared to 2022. It is expected to maintain an average annual growth rate of about 8 per cent annually heading towards 2027.
According to data from Payoo, the F&B sector had impressive growth in the second half of 2023, with an increase of about 20 per cent in the second half of the year compared to the first half.
The potential of an open market has made F&B an attractive field with exciting activity from new brands, both domestic and foreign.
The Ministry of Industry and Trade has issued 183 foreign brands franchise licenses. These are mainly for firms from the US, Australia, South Korea, and the European Union.
The F&B sector in Vietnam is a dynamic market characterized by a rich cultural and taste diversity, creating a vibrant playground. The main attraction for VIG to invest in this sector is the significant opportunities from the rapidly growing market, coupled with the high consumer demand for F&B.
Moreover, the F&B industry is an essential consumer sector, capable of maintaining stability through economic fluctuations, emphasizing the sustainability and strategic importance of our investment in this field. This resilience makes the F&B sector particularly appealing as it promises stability and growth potential across economic cycles, providing a solid foundation for our investment strategy.
After studying the market’s potential, VIG decided to look for local partners to set foot in this promised market with more than 100 million people. We seek and cooperate with innovative F&B brands with vision and social responsibility, aiming to build a prosperous and sustainable F&B ecosystem. Our goal transcends profit generation, aiming to contribute to community and societal development through high-quality F&B products and services. And VIG found these criteria at ToCoToCo.
When VIG decided to partner with ToCoToCo, it was not only their vision and development strategy that were evaluated but also the quality and determination of the founders. The founders of ToCoToCo are well-versed in both the products they offer and the market they serve. They have demonstrated a keen eye for detail in execution and have shown themselves to be incredibly hardworking.
“This combination of strategic foresight, operational excellence, and strong leadership has made VIG’s decision to invest in ToCoToCo seem less risky over time. The commitment of ToCoToCo’s founders to their business, their deep understanding of the industry, and their unwavering work ethic have played a significant role in the company’s success and in reinforcing VIG’s confidence in ToCoToCo’s potential for growth in both domestic and international F&B markets,” Mr Bao Bui – Post Investment Manager said
VIG accompany ToCoToCo on the journey to realise its ambition to expand beyond Vietnam
After building a solid foothold in the F&B industry, ToCoToCo continues to conquer the ambition to expand the franchise to the globe.
The proverb “If you want to go fast, go alone. If you want to go far, go together” accurately describes the cooperation between VIG and ToCoToCo in the process of expanding the franchise chain to the international market.
To make the franchise of the ToCoToCo brand go global, VIG supports ToCoToCo not just financially but also by providing management experience and international market expansion insights, offering strategic and technological resources to help ToCoToCo achieve its ambition to enter the international market.
“A key factor for international success is for ToCoToCo and other Vietnamese F&B brands to seek and cooperate with reputable local partners with deep operational experience, ensuring effective adaptation to and management of new markets and cultures, thereby maximizing international success opportunities,” Mr Bao Bui said
Additionally, VIG, with its extensive international relations, will assist Vietnamese partners in finding trustworthy international partners, not only expanding business territories but also including product and service development to meet the needs and cultures of new markets, opening opportunities for ToCoToCo and other Vietnamese brands to become internationally recognized names.
“VIG is proud of the successful collaboration with ToCoToCo, a prime example of our investment strategy in the Vietnamese F&B sector,” he said.
During the story about the successful collaboration with ToCoToCo, VIG advises international investors looking into the Vietnamese F&B sector to prioritize finding local partners who are deeply rooted in the local culture and consumer behaviors, and who have a strong capability for market adaptation. Such partners are crucial for navigating the unique challenges of the Vietnamese market and leveraging opportunities effectively.
“Investors should conduct comprehensive evaluations of potential partners, focusing on financial stability, alignment in corporate culture, and innovation capabilities. A partnership based on shared visions and values is essential for long-term success, enabling efficient business operations and a strong market presence,” Mr Bao Bui said
Highlighting the importance of sustainability and community engagement, VIG points to ToCoToCo as an exemplary model. The brand is recognized for integrating environmental responsibility and community support into its business strategy, using eco-friendly packaging, and promoting green consumption habits. ToCoToCo’s commitment to social causes and support for local agriculture reflects the type of values VIG suggests investors should look for in a partner. This approach not only aids in navigating the market but also contributes to sustainable development and community well-being, key factors for achieving success in the Vietnamese F&B sector.
Investing in ToCoToCo marks the beginning of VIG’s long-term commitment to developing the potential-rich F&B market, through supporting brands with unique concepts, high scalability, and sustainability. VIG aspires to be part of numerous success stories in the F&B sector, affirming our position as a leading investor in Vietnam and the region.
Hotline: 1900 63 69 36
Website: https://tocotocotea.com/
