Vinamilk, the largest dairy company in Vietnam, will own 51 percent of the new firm, Vinamilk – Kido Beverage Joint Venture Company (Vibev), and Kido the rest, the latter announced on Tuesday.

Vibev is expected to earn revenues of VND2 trillion ($86.6 million) in the first year.

Mai Xuan Tram, deputy CEO of Kido, said the two companies have over one million outlets to sell beverages across the country, of which 120,000 could sell frozen foods, helping the new venture be competitive in the domestic market.

Vinamilk’s export network of 30 countries and territories would also help Vibeb sell globally, he added.

The company will produce ice cream and other types of frozen foods and nutritious beverage, and will not make carbonated drinks.

Vinamilk has more than half of Vietnam’s dairy market, while KIDO leads the ice cream market with a 41 percent share, according to figures from market research company Euromonitor International.

KIDO said the beverage market was worth VND124 trillion ($5.4 billion) last year.