Brian Jeffrey
The seasoning, condiments, and spice market is experiencing rapid growth in Vietnam, with retail sales reaching VND39.9 trillion in 2023, an increase of 9 percent from 2022, as reported by Euromonitor. The spice market segment is projected to have a CAGR of 11 percent and reach a value of VND65.8 trillion ($2.6 billion) from 2019 to 2028.
Maintaining a dominant position in the market, Masan Group captures 30 percent market share due to its strong brands and innovative product development. Masan holds 70 percent market share among fish sauce producers and 60 percent and 50 percent shares in soybean and chili sauce segments, respectively.
Despite Masan’s stronghold, investors are now turning their attention to a smaller yet ambitious enterprise with a long-term vision. The recent surge in CMF shares of Cholimex Food has attracted investor interest.
CMF prices spiked by 15 percent on June 26, reaching VND252,400 per share, making it the third-highest priced stock on the market, surpassing other big names. By July 8, CMF prices surged to VND262,000 per share, making it the second-highest priced stock in Vietnam after VNG.
Analysts believe that Cholimex Food’s CMF stock has a significantly high market price with a positive upward trend and low liquidity. The company’s solid financial performance, with steadily increasing revenue and profit, contributes to its attractiveness to investors.
Cholimex Food, a key player in the industry since the late 1980s, offers a range of products including soybean sauce, chili sauce, and fish sauce, catering to major retailers like Metro, Co-op, and Big C.
Notably, Cholimex Food supplies spices to renowned food brands like Haidilao, Pizza Hut, Domino’s Pizza, and Jollibee, enhancing its market presence and reputation.
With a strategic shareholder structure, Cholimex Food is backed by Cholimex (40.7%), Masan Food (32.8%), and Nichirei Foods Inc (19%). Despite Masan’s failed attempt to acquire a substantial stake in 2014, it remains a significant shareholder in CMF.
In 2023, Cholimex Food achieved its 14th consecutive year of revenue growth, reaching VND3.4 trillion, showcasing resilience amidst global economic challenges. The company’s profitability has remained strong at over VND200 billion annually in the past two years.
Under the leadership of President Huynh Trung An and CEO Diep Nam Hai, CMF aims for ambitious revenue growth, targeting a fivefold increase in the next five years and an immediate revenue goal of VND10 trillion.
Benefiting from the thriving spice industry, CMF faces stiff competition from industry leaders like Masan, Trung Thanh, and Nosaffood as it strives for sustained growth and market expansion.
