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Per 10 October 2019, Pepsi's products are no longer distributed in Indonesia. Goodbye, Pepsi! Thanks for the 24 years! (Image via Popbela.com)
Starting 10 October, Pepsi to leave Indonesia
American carbonated soft drink and Coca Cola’s rival, Pepsi, is going to leave Indonesia starting 10 October. PT. Asahi Indofood Beverage Makmur (AIBM), one of the Indonesian food and beverage companies that acquired PepsiCo Inc., confirmed the news that they did not extend the contract with Pepsi. AIBM is a subsidiary company of PT Indofood CBP Sukses Makmur Tbk.Originally Pepsi-Cola, Pepsi is sold worldwide. AIBM stated its hope that Pepsi would soon come back to the Indonesian market with its products. AIBM and PepsiCo had a 5-year “Exclusive Bottling Agreement” (EBA) that lasted until 2019. With the agreement being void, AIBM cannot produce PepsiCo’s products such as Pepsi, Miranda, 7Up, and Mountain Dew.
In the history of food and beverages, Pepsi became one of the most famous brands. In 1995, Pepsi embarked its first journey in Indonesia when Salim Group established PT Pepsi Indobeverages, a collaboration between PepsiCo from the United States (U.S) and Indofood CBP Sukses Makmur. However, the year 1996 became the first production year for PepsiCo in Indonesia.
In 2013, AIBM and PT Indofood Asahi Sukses Beverage (IASB) acquired PT Pepsi Indobeverages at US$30 million.
The rumor about Pepsi’s disappearance from Indonesia had been circulating in recent months when people could not find Pepsi drink in any markets. Their fear came true when KFC and Pizza Hut, fast-food chain in Indonesia that cooperate with Pepsi, stated that they would not use the drink anymore in its “Beverages” menu.
When being asked whether Pepsi’s withdrawal means a blow to Indofood’s shares, Indofood did not say much. It hinted that it would not since its profit comes mostly from instant noodles sales.
Source: https://bit.ly/31UIemx
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