Background ORANA
Orana develops, produces and sells tailor-made fruit based raw materials and semi-manufactures for dairy products like fruit yoghurt and ice cream and for beverages like juice, nectar and carbonated soft drinks. Orana is also a leading producer of natural extracts and fruit based food service products such as jams, filling and topping for cakes, concentrates for smoothies and syrups for drinks.
Orana has head office in Denmark and subsidiaries in Egypt, India and Vietnam all providing sales and R&D services. By the end of 2012 each site will also have its own production facilities. In addition, Orana has a sales office in Malaysia and cooperation with agents in several other countries.
The ORANA Way
Orana operates in the B2B sector and has it customers among the dairy and beverage industries and other food producers.
On the consumer market, the Orana brand does not really ring any bells but in more than 40 countries around the world, many leading brands of yoghurt, drinking yoghurt and soft drinks contain fruit from Orana.
Orana is based on more than 75 years of experience in the business of fruit and within this industry known for its tailor-made solutions. “You decide the taste and we do the rest”.
ORANA Vietnam – A Successful Co-operation
When Nguyen Chung, Chairman of PCM Ltd., and Niels Østerberg, Director of Orana A/S, met in 1993, they did not know that this was the beginning of a large industrial fruit adventure in Vietnam. The co-operation between the partners has resulted in numerous success stories, including the establishment of the Orana Vietnam Joint Venture in 2002 which today is the leading producer of tailor-made fruit based raw materials not only in Vietnam but in the whole of SEA. Today, Orana Vietnam has export to customers in more than 20 countries.
Danida and IFU Support
The establishment of Orana Vietnam was successfully supported by the Danish government through the Danida B2B program. Moreover, the Industrialization Fund for Developing Countries, IFU, has been a shareholder in Orana Vietnam since 2003. Based on the long-term co-operation with IFU both in terms of capital and its valued participation in the Member’s Council, continuous improvements and growth has been possible.
Growth, growth and more growth
Orana Vietnam was to produce and sell tailor-made Fruit Based Raw Materials in Vietnam. The investment was profitable from the first year and soon it turned out that the factory that had been built was too small. In 2005, the factory was expanded to three times the original size. Ever-increasing sales on the local market, as well as a continuous growth in the export, has now resulted in a more than 15 times increase in the production volume in just 10 years. The factory today produces fruit for more than 50 million liters of yoghurt or 275 million cups of 180 cc.
An Innovative R&D Center
A local R&D center was established in the early days of the company, servicing the local market as well as export markets in cooperation with the other Orana sales offices. Today Orana Vietnam has more than 10 innovative and experienced product developers based in Vietnam developing new exciting products. Development takes place in close cooperation with each customer for successful tailoring of the product to the customer’s satisfaction.
Local Exotic Fruits
Vietnam is a country of various exotic fruits and Orana Vietnam has exploited the opportunity and incorporated many local exotic fruits in the products for both the local market and export markets. This has been beneficial to the local Vietnamese society as locally produced raw materials have been used in Orana’s products. It has also been beneficial for Orana – as Orana has had a niche on the world market.
Food Service Products
The establishment of Orana Vietnam has also made it possible for Orana to diversify into new business areas, such as Food Service. The Food Service products are marketed under the brand name Østerberg. With a large number of products ranging from 28 gram portion pack jam to 5 kg bucket fruit fillings, 600 ml and 1 liter PET bottle Fruit Crush and soon introducing a range of syrup’s, Østerberg is today supplied to many cafés, bakeries, hotels and supermarkets in Vietnam. The products have been available on the Vietnamese market for several years and export of Food Service products has taken place the past 3 years and is increasing rapidly, mainly to the rest of South East Asia and India.
Orana Vietnam in the Future
The investment in Vietnam has been profitable from the beginning but has also required hard work, lots of patience and the overcoming of a great deal of cultural challenges. Orana Vietnam is working based on international standards but with local employees and today has nearly 100 employees of which only one is a foreigner (Danish). One of the present major challenges for Vietnam is the educational level as well as the inflation causing considerable increases in salary. During the past 10 years, a rapid development has taken place in Vietnam and Orana Vietnam expects a continuous growth and investment in Vietnam.
Le Phuong