Marubeni to make instant coffee in Vietnam, targeting SE Asia, China

21, Jun. 2019

HO CHI MINH CITY, NNA - Japanese trading house Marubeni Corp. will produce instant coffee in Vietnam to meet growing demand in Southeast Asia and China following success in the business in Brazil.

The firm plans to invest about 12.7 billion yen ($118 million) to build a factory with annual output capacity of 16,000 tons for scheduled operation in 2022, a company spokesman told NNA on Thursday.

Wholly owned Iguacu Vietnam Co., established in May, expects to gain regulatory approval by next March and begin constructing the plant in Phu My 3 Specialized Industrial Park in the southern province of Ba Ria-Vung Tau, the spokesman said.

The subsidiary will ship the product mainly to Southeast Asian countries and China, where instant coffee consumption has grown more than 5 percent annually, compared with the global average of 2 percent, according to Marubeni's statement released Wednesday.

The Tokyo-based trader has operated a Brazilian instant coffee-manufacturing unit, Cia. Iguacu de Cafe Soluvel, for over 46 years for global supply.

Marubeni intends to establish a bipolar supply system by setting up the second overseas production base in Vietnam, the world's largest producer of the Robusta variety of coffee beans, the statement said.

The Marubeni group's total instant coffee output capacity will reach 40,000 tons per year after planned capacity expansion in Brazil next year and the start of production in Vietnam, making it the largest instant coffee supplier in the global corporate trade segment, it said.

Global instant coffee demand in the business-to-business trade segment is estimated at 320,000 tons annually, the spokesman said. (NNA/Kyodo)