HONG KONG August 2020
 
Vitasoy expects 2nd half sales to rebound all thanks to the Mainland
 
Despite the painful relationship between Hong Kong with mainland China, the territory’s largest non-carbonated beverage manufacturer, Vitasoy International is scaling up its business on the mainland to prepare for a rebound in sales in the 2nd half of 2020.
Vitasoy expects sales to recover as China successfully passed through the serious phase of the outbreak as it is now in recovery mode. For the year ended March 2020, Vitasoy reported a 23% drop in earnings while sales dropped by 4%. Vitasoy operating profit from the mainland also dropped by 24%. Vitasoy reported that 62% of its sales came from the mainland.
Meanwhile, in Hong Kong, profit dropped by 14% as social unrest and the Covid-19 crisis disrupted its distribution channels and sales to schools, which have been closed under pandemic restrictions.
To sustain demand in the mainland market, Vitasoy has also digitised its operations, according to its Chief Executive Roberto Guidetti. The group's online business on the mainland now contributed 10% of its total revenues and this will continue to grow in the next few years. Nevertheless, online business does not satisfy all the company’s needs as some portions of Vitasoy’s business still require a physical presence, added Roberto.
For the Hong Kong market, despite the social unrest, Vitasoy had been able to grow market share for its key brands such as Vitasoy and Vita soy and milk tea because of successful promotional campaigns.
 
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