Participating in the show Billion Dollar Deal season 7, episode 13 (Shark Tank Vietnam), Ms. Phan Thi Na - General Director and co-founder of Caty Food Joint Stock Company talked about the journey of creating dragon fruit instant noodles: "Caty Food is a member of the Binh Thuan Dragon Fruit Association and we are always concerned and eager to find an outlet for dragon fruit in the Binh Thuan growing area in particular and Vietnamese dragon fruit in general. After 2 years of research with the University of Industry and Trade and the Saigon Institute of Economic Sciences, Caty Food has successfully developed nanotechnology dragon fruit instant noodles."
Accordingly, the noodles contain 12% dragon fruit. Dragon fruit noodles have been certified as a product of a science and technology enterprise of Binh Thuan province. Immediately after appearing on the market, with a communication campaign on social networking platforms, Caty Food dragon fruit instant noodles created a "positive crisis", supply could not meet demand.
Ms. Phan Thi Na - General Director and co-founder of Caty Food Joint Stock Company and Tran Danh, Marketing Director, introduced the dragon fruit instant noodle product.
Regarding the product, according to the Caty Food team, dragon fruit noodles are a breakthrough product because for the first time in the world, Vietnamese people have successfully added dragon fruit ingredients into noodles. This is also the unique competitive advantage of dragon fruit noodles. To date, Caty Food has patented the technology and registered it exclusively in the US, China and several other countries.
The product has achieved certifications such as FDA, HACCP, GlobalGAP and is exported to the US and Chinese markets. By the end of 2024, Caty Food dragon fruit instant noodles will also be exported to Russia, Indonesia and Australia. In the domestic market, the product is available at 10,000 points of sale, available at Emart and Co.opmart supermarket systems.
Regarding the overall picture of the noodle market, in 2023, Vietnam recorded the consumption of more than 8 billion noodle packages, in addition to the big players, there is also 27% market share of small noodle brands. Caty Food aims to capture 5% of the total market share by 2026. The Caty Food team also said that although the instant noodle market is a "red" market, in terms of the instant noodle market with fruit ingredients, dragon fruit noodles have no competitors and the development potential is huge.
In fact, Caty Food has sold more than 3 million packages of noodles after the success of the campaign "Dragon fruit in instant noodles for the first time". The company has expanded to more than 10,000 points of sale, with revenue in 2023 reaching 46 billion VND, and a profit margin after tax of 8%. Ms. Na said that this year Caty Food aims to achieve revenue of 250 billion VND, and expand to more than 50,000 points of sale next year. Coming to Shark Tank, Caty Food raised 1 million USD for a 5% stake.
The sharks expressed their delight when trying dragon fruit instant noodles.
Realizing that the success of the communication campaign "For the first time, dragon fruit is in instant noodles" is a boost for the development of Caty Food, Shark Minh Beta asked the question "was the success of the campaign due to the calculation of the Caty Food team or luck"?
Responding to this Shark, Mr. Tran Danh - Marketing Director of Caty Food said, "Luck is only one factor in the campaign. Caty Food's marketing team is very young, very knowledgeable about popular culture, grasps trends, and has calculated that after launching this campaign, there will be a certain virality. Caty Food was very confident and measured 50-60% of the situation. However, the actual attraction was greater than expected, so it created a "positive crisis" when the campaign was successful."
Faced with the confidence of the Caty Food team, Shark Minh Beta asked whether Caty Food could continue to produce similar communication campaigns. In response, Tran Danh said that Caty Food is nurturing another explosive campaign in the last months of 2024.
Shark Nga asked about the form of exporting goods to the US and Russia in the near future. Caty Food team said that they have successfully signed contracts with 2 major partners, the US and China. Of which, with the US, they have successfully signed 5 containers. With China, they have successfully signed 7 containers and are negotiating to sign 10 containers with Russian customers and 8 containers with Indonesian customers. Each container of instant noodles ranges from 700-800 million VND in value.
With the unique advantage of dragon fruit in the noodle package, a representative of Caty Food said that the company aims to achieve revenue of 250 billion VND in 2024.
Shark Phi Van asked about the product's difference: "What makes customers continue to buy Caty Food after the first time?". Responding to Shark, the founding team said that when combining fresh dragon fruit into the noodles, it will help reduce starch content, create a cool feeling, strengthen the immune system, good digestion but still maintain the deliciousness of the noodles.
Caty Food Marketing Director Tran Danh said that Caty Food does not actually want to compete with traditional instant noodle brands but wants to follow the trend of instant noodles with fruit ingredients. And in fact, up to now, the startup has also proven that when exporting to the US and Chinese markets, many customers really like it because it is very difficult to put fruit in instant noodles.
Meanwhile, Shark Le My Nga believes that Caty Food's good business results are only temporary, thanks to the support of customers "rescuing dragon fruit" and does not see a bright picture of the market both internationally and in Vietnam in the future, so she does not invest.
Shark Tank Vietnam has had a record deal closing from Shark Binh, when he agreed to invest 25 billion VND for the Binh Thuan dragon fruit instant noodle brand.
As the last person to give his opinion, before making the deal, Shark Binh shared about how he valued Caty Food: “In this industry, I looked it up in the US and found that in the food processing industry, companies on the stock exchange only have a P/E (price to earning ratio) of about 15 times. But for a startup company like Caty Food, the valuation is only a maximum of 10 times. This year's profit is 20 billion VND, so the valuation is only about 200 billion VND.”
With this valuation, Mr. Nguyen Hoa Binh offered a deal of 1 million USD for 11.1% of shares.
After consulting with the company's President, the Caty Food team received a deal of 1 million USD (equivalent to 25 billion VND) for 10% of Shark Binh's shares and successfully closed the capital calling deal.
Source: https://danviet.vn/dieu-gi-khien-shark-binh-chot-muc-dau-tu-ky-luc-1-trieu-usd-cho-loai-mi-tom-chi-viet-nam-moi-co-20241022164116756.htm
Comment (0)