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Orana

Orana Vietnam was established in 2002 as a joint venture between Orana A/S and a local partner with the primary aim of producing fruit-based materials for the local business-to-business (B2B) market. Today, Orana Vietnam has increased the yearly volumes more than 10 times since its incorporation. Production of fruit based materials is for local markets as well as export markets. Moreover, Orana Vietnam is in the process of expanding its customer base in order to promote its Food Service products within the local business-to-consumer market under the brand name of “Østerberg”.

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Being one of the largest Danish suppliers of fruit based raw materials and semi-manufactures for the beverage industry, dairies and other food producers, and with more than 75 years of experience, Orana is definitely an experienced company within the business of fruit and taste.
The Orana Vietnam joint venture was established with support from the Danida Business-to-Business Program (B2B) as well as the Industrialisation Fund for Developing Countries (IFU). One of the main reasons why Orana decided to expand its activities by opening a new production plant in Ho Chi Minh City was import duties. The water contained in Orana’s fruit based semi-manufactures that were exported from Rynkeby Denmark to Vietnam was of higher price than the finest French mineral water. A second reason was the possibility of shortening delivery time to Asian customers. Moreover, low labor costs combined with the high work ethic of Vietnamese workers were further benefits achieved.

Going into the Vietnamese market in collaboration with a local partner was a key success factor in the establishment of Orana in Vietnam. The local partner was particularly helpful in all communication with the Vietnamese authorities. Moreover, bringing onboard a local partner has minimized issues arising from cultural and language barriers. Orana contributed with the transfer of technology from Denmark to Vietnam and has subsequently trained and educated local employees.

Today, nearly 10 years after starting production in Vietnam, Orana Vietnam has embarked on the process of entering the Vietnamese B2C market. With a population of almost 90 million the Vietnamese consumer market is interesting, even though this market is outside Orana’s core business. Four years ago Orana launched its Østerberg brand as a trial and today it is recognized as a success. The brand has been especially well received by local café’s and bakeries and has a much wider potential for growth. Orana Vietnam is therefore increasing resources for this business to achieve higher growth rates.

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