Story behind the success of Caty dragon fruit noodles

By Lan Do, My Ha
Tue, December 3, 2024 | 8:15 am GMT+7

At the end of October, the name Caty Foods emerged when it successfully closed a deal with "Shark" Nguyen Hoa Binh, chairman of Next Tech Group, on Shark Tank Vietnam - Billion Dollar Deal, for $1 million to own a 10% stake at Caty Foods.

Shark Tank Vietnam is a reality television series where start-ups seek investments from a panel of investors, broadcast on Vietnam Television.

One year ago, Caty Foods launched its dragon fruit noodle brand with a very viral promotional MV on social networks through the simple lyrics "The first time dragon fruit is in instant noodles".

The person behind the idea of putting dragon fruit into instant noodles and the author of the promotional song is Le Quang Huy.

Le Quang Huy, chairman of Caty Foods Company Limited. Photo courtesy of The Investor/My Ha.

Le Quang Huy, chairman of Caty Foods Company Limited. Photo courtesy of The Investor/My Ha.

The Investor talks with Le Quang Huy, chairman of Caty Foods Company Limited - the name behind the success of Caty dragon fruit noodles, about the ways he has helped dragon fruit growers overcome difficulties and how he is nurturing bigger plans "to do more for Vietnamese agricultural products".

Where did you get the idea of making dragon fruit noodles?

At that stage of my life, I did not need to start a business or find a new source of income. I was vice chairman of the Dragon Fruit Association in Binh Thuan province then, I am still now, and I owned 20 hectares of dragon fruit orchards.

Through my years of growing dragon fruit, I’ve come to fully understand the struggles farmers face. They work tirelessly from dawn until dusk, yet when harvest time arrives, many issues arise: unsold produce, plummeting prices, and situations where the cost of labor to harvest the fruit exceeds its market value. This is the harsh reality for many dragon fruit farmers, not just for me but for countless others, especially in Binh Thuan’s main growing regions.

Witnessing these challenges firsthand, I felt compelled to find a solution, not just for myself but for the entire farming community. Together with the association, I traveled to various countries to explore opportunities for exporting fresh dragon fruit.

However, the costs of packaging and preservation were significant obstacles. Dragon fruit’s thin skin and high water content require sturdy packaging to prevent damage, and its short shelf life makes long-term storage impossible, unlike fruits such as grapefruit or coconut.

Given these limitations, deep processing became the only viable path. This idea has been discussed for generations and has led to products like dried dragon fruit, juices, and even dragon fruit wine.

Caty dragon fruit noodles. Photo courtesy of Caty.

Caty dragon fruit noodles. Photo courtesy of Caty.

One day, while shopping at a supermarket, I noticed how popular instant noodles are in Vietnam. Almost every family, regardless of their income level, buys them in varying quantities.

It struck me that if we could incorporate dragon fruit into something as widely consumed as instant noodles, it would provide a significant outlet for deep-processed dragon fruit products. This idea could open new doors for the dragon fruit sector and create sustainable demand for farmers.

The success of dragon fruit noodles today cannot be without the product advertising campaign "For the first time, dragon fruit is in instant noodles" that went viral on social networks at the end of last year. It is known that the lyrics were written by you.

I am the one who wrote and rhymed the lyrics. With the mindset of a dragon fruit grower and vice chairman of the Binh Thuan Dragon Fruit Association, I wrote the song with hopes that listeners would love dragon fruit more and care more about the lives of dragon fruit growers.

Since the idea of making dragon fruit noodles arose, I began to conduct in-depth research, hired experts, and bought a testing production line. During the process, I encountered many difficulties, such as the flour used to make noodles and dragon fruit being two different materials; and simply chopping them up and mixing them together broke them immediately, not creating chewy, delicious noodles.

The time to cook the two ingredients was also different; dragon fruit was easy to cook, while noodles were difficult to do so. While waiting for the noodles to cook, the dragon fruit burned, but if you waited for the dragon fruit to cook until it was just cooked, the noodles became hard.

Therefore, there must be new techniques and new technology to do it, but investing in too much new technology would cause production costs to rise, making prices skyrocket and making the product difficult to sell.

After going through so many difficulties and worries, I thought there was a time when I had to give up. So when I succeeded, I had many emotions and composed a promotional song. Naming the company and product Caty, I started from the name of the Ca Ty River, which is associated with the people and land of Binh Thuan.

Viral advertising MVs on social networks have proved effective. But the instant noodle market is fiercely competitive. What keeps consumers after the viral effect passes?

I have to admit that the virality of the promotional clip helped the dragon noodle product grow too quickly, beyond our expectations. Orders came in more than we could have imagined; we had to increase production and recruit more staff to deploy the delivery and sales system. After more than a year, up to now, the company's production capacity has not met the demand.

I believe that the dragon noodle product can survive in the market because it goes in a very different direction. Many noodle brands today pay little attention to improving the nature of the noodles; the noodles are still high in starch and fried, making consumers worry about eating too much starch. They also think it's hot for the body and not good for health. Meanwhile, dragon fruit has many nutrients that are good for human health, such as aiding digestion, anti-aging, and cooling.

When dragon fruit is combined with instant noodles, it creates a nutritious dish, balancing the noodles.

Children love instant noodles; we believe that if we do not have clean, quality, and safe products, it is a great sin to the younger generation.

On the other hand, in the end, my happiness is not how many packs of noodles I sell or how much profit I make but that everyone, every household is interested in dragon fruit and in dragon fruit growers. In particular, manufacturers really want to find a way to put dragon fruit into their products, from lip balms and skin care products to cakes and ice cream.

The popularity of dragon fruit noodles is just the first step; surely you already have plans to develop later.

Yes, there is still a lot to do to develop dragon fruit noodles. The first thing is to invest in production lines, reduce costs so that the product can reach many consumers but still retain the nutrients of dragon fruit, and neutralize the coolness of dragon fruit with noodles.

At the same time, Caty Foods focuses on market development, not only domestically but also exporting around the world. I determined that if I wanted to go out into the world, I had to go to the U.S. first, because this is the most difficult market. Conquering it will make other markets easier.

In this market, the biggest difficulty is the technique and product quality. Thanks to the initial standardization, Caty noodles quickly passed the test. Currently, the company has a branch in the U.S., responsible for distributing products in the U.S. and Canada.

Next is the world's most populous market, China. Technically, Caty noodles have passed the U.S. market, so they easily meet the standards. However, we encountered difficulties in the selling price. But after many negotiations and clarifying production costs, the partner agreed to import goods.

In general, in these two markets, Caty Foods has met requirements in terms of product quality standards, food safety, brand, and price. The next thing to complete is the distribution system.

What is Caty Foods's development orientation?

I want to diversify products, not only noodles but also produce drinks and fish sauce.

With drinks, I want to go in a different direction. Caty alkaline ionized water is not purified water. This is a type of water invented by Japan. The Japanese government asked scientists to find ways to prolong people's lives; one of the solutions is to invent alkaline ionized water.

Regarding fish sauce, I want to follow the traditional fish sauce direction. Binh Thuan has many advantages in terms of natural conditions and good sunshine to create delicious fish sauce products.

At first, you wanted to sell a 5% stake for $1 million but later agreed to sell 10% to Shark Binh for the same price. Can you give us details about this deal?

Actually, to raise capital, we have many ways; my wish when going on Shark Tank is not only to raise capital but also to find talented, dedicated people to accompany Caty Foods to go far.

Moreover, $1 million is only the initial cost when Shark Binh joins the business; we also have a story behind it, such as building a factory and expanding the scale; Shark Binh will be the companion.

Caty is still quite young; we have just mastered the technology, built the brand, and widely promoted the products. Caty Food has not been proactive in production; we have to outsource, which makes it impossible for the company to optimize production and fully meet the needs of partners and customers.

Caty Foods has planned to build a factory and distribution system next year and to be self-sufficient in production. I also set a goal of bringing Caty Foods to the stock exchange in the next 4 to 5 years.

In general, I determined that this success cannot be kept to myself; if I want to go far, if I want to develop well, I have to make an IPO. I hope that when an IPO takes place, there will be new talents joining to help the business develop to new heights. Then, Vietnamese agricultural products in general and dragon fruit in particular will have more opportunities to develop.

Comments (0)
  • Read More
Four new container terminals to be built in northern Vietnam economic hub

Four new container terminals to be built in northern Vietnam economic hub

Prime Minister Pham Minh Chinh has granted in-principle approval for the development of four new container terminals at Lach Huyen Port in the northern city of Hai Phong.

Infrastructure - Wed, July 9, 2025 | 5:36 pm GMT+7

Sausage mogul eyes $5 bln green energy, cattle project in northern Vietnam

Sausage mogul eyes $5 bln green energy, cattle project in northern Vietnam

Mai Huy Tan, who founded and later sold the popular Duc Viet sausage brand, has proposed a $5 billion circular economy complex in Quang Ninh province, northern Vietnam.

Industries - Wed, July 9, 2025 | 5:14 pm GMT+7

Northern Vietnam urban-tourism project Cat Ba Amatina has new investor

Northern Vietnam urban-tourism project Cat Ba Amatina has new investor

Hanoi Anpha Real Estate Exchange Co., Ltd. (Hanoi Anpha) has become a major shareholder of Vinaconex ITC, the developer of the Cat Ba Amatina urban-tourism project in Hai Phong city, northern Vietnam.

Real Estate - Wed, July 9, 2025 | 2:57 pm GMT+7

Brazil’s leading food group JBS eyes turning Vietnam into global production hub

Brazil’s leading food group JBS eyes turning Vietnam into global production hub

JBS, the world’s leading food processing company, is looking to transform Vietnam into a global and regional distribution and production center.

Industries - Wed, July 9, 2025 | 9:51 am GMT+7

Brazilian-backed payment solutions firm Alterosa MK plans expansion in Vietnam

Brazilian-backed payment solutions firm Alterosa MK plans expansion in Vietnam

Alterosa MK, a joint venture between Brazil’s Alterosa Group and MK Group of Vietnam, said it expects to receive more support from the two governments for investment expansion.

Finance - Wed, July 9, 2025 | 9:00 am GMT+7

USD price may reach VND26,400 in Q3, VND26,200 in Q4: UOB

USD price may reach VND26,400 in Q3, VND26,200 in Q4: UOB

Singaporean bank UOB's updated USD/VND projections are 26,400 in Q3/2025, 26,200 in Q4/2025, 26,000 in Q1/2026, and 25,800 in Q2/2026.

Economy - Wed, July 9, 2025 | 8:41 am GMT+7

Vietnam's stock market moving toward sustainability, professionalism: exec

Vietnam's stock market moving toward sustainability, professionalism: exec

The quality of investors in Vietnam has significantly improved as more and more investors start to adopt asset management strategies and disciplined investing, instead of merely engaging in short-term trading, said Nguyen Hoang Yen, chairwoman of Mirae Asset Securities.

Finance - Tue, July 8, 2025 | 11:40 pm GMT+7

Vietnam's credit growth hits record high since 2023

Vietnam's credit growth hits record high since 2023

Vietnam’s total credit outstanding surpassed VND17.2 quadrillion (about $658.31 billion) in the first half of 2025, marking a 9.9% increase from the end of 2024 and a 19.3% rise year-on-year, the highest growth rate since 2023.

Banking - Tue, July 8, 2025 | 11:26 pm GMT+7

Foreign investors net buy for fifth consecutive session

Foreign investors net buy for fifth consecutive session

Foreign investors' transactions on the Ho Chi Minh Stock Exchange (HoSE) continued to be a highlight as they net bought for the fifth consecutive session on Tuesday, to the tune of over VND7,679 billion ($293.88 million).

Finance - Tue, July 8, 2025 | 6:08 pm GMT+7

Northern Vietnam province opens bid for $2 bln tourism-casino complex project

Northern Vietnam province opens bid for $2 bln tourism-casino complex project

Quang Ninh, a coastal province in northern Vietnam, is seeking investors for a large-scale tourism and casino complex valued at VND51.5 trillion ($2 billion) in its strategic Van Don Economic Zone.

Real Estate - Tue, July 8, 2025 | 4:37 pm GMT+7

The Investor to hold seminar on raising investor awareness towards stock market status upgrade

The Investor to hold seminar on raising investor awareness towards stock market status upgrade

The Investor and its Vietnamese-language sister Nhadautu.vn will host a seminar titled “Raising investor awareness towards stock market status upgrade” in Hanoi on July 17.

Finance - Tue, July 8, 2025 | 4:02 pm GMT+7

Many uncertainties over exchange rates: Vietnam's central bank

Many uncertainties over exchange rates: Vietnam's central bank

There are many "unknowns" with monetary policy and exchange rates in the coming time, said Pham Chi Quang, director of the State Bank of Vietnam's (SBV) monetary policy department.

Banking - Tue, July 8, 2025 | 3:53 pm GMT+7

World's largest iron ore, nickel producer wants to expand business in Vietnam

World's largest iron ore, nickel producer wants to expand business in Vietnam

Prime Minister Pham Minh Chinh has asked Vale Group, a multinational Brazilian corporation in the fields of metals, mining, and logistics, expand business in Vietnam.

Industries - Tue, July 8, 2025 | 1:52 pm GMT+7

Vietjet appoints new managing director

Vietjet appoints new managing director

Vietjet Aviation Joint Stock Company (HOSE: VJC) has appointed Nguyen Thanh Son as its new managing director, succeeding Dinh Viet Phuong.

Companies - Tue, July 8, 2025 | 8:10 am GMT+7

First turbine rotor installed at expanded Hoa Binh hydropower plant in northern Vietnam

First turbine rotor installed at expanded Hoa Binh hydropower plant in northern Vietnam

The rotor of the first turbine at the expanded Hoa Binh Hydropower Plant project was successfully installed on Sunday in Phu Tho province, formerly Hoa Binh province, northern Vietnam.

Companies - Tue, July 8, 2025 | 8:07 am GMT+7

Singapore heavily penalizes nine financial institutions for money laundering

Singapore heavily penalizes nine financial institutions for money laundering

The Monetary Authority of Singapore (MAS) has fined nine financial institutions SGD27.45 million ($21.55 million) for breaches related to the 2023 money laundering case involving more than SGD3 billion in assets.

Southeast Asia - Tue, July 8, 2025 | 7:58 am GMT+7