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ICBP developing snack products after PepsiCo exit from Indonesia

25 February 2021 14:35

JAKARTA - PT Indofood CBP Sukses Makmur Tbk (ICBP) will develop snack products after acquiring a 49% stake in Fritolay Netherlands Holding BV (Fritolay) in PT Indofood Fritolay Makmur (IFL). The share acquisition requires IFL to stop producing, packaging, marketing, and selling three PepsiCo licensed snack products (Lays, Cheetos, and Doritos) in Indonesia.

Gideon A. Putro, Corporate Secretary of PT Indofood CBP Sukses Makmur Tbk (ICBP) conveyed that the snack products developed were Chitato, Qtela, Chiki, and Jetz. "After the end of the transition period in the cessation of production, packaging, marketing and sales of PepsiCo's brand snack products, there will be no competition for snack products from Fritolay, PepsiCo and their affiliates in Indonesia," he said in an information disclosure quoted on Thursday (25/2).

Last week, ICBP acquired a 49% stake in Fritolay in IFL, for which IFL was given six months to complete the transition process, namely, stopping production, marketing, and sales of three PepsiCo licensed products. After the transition process is completed in six months, then a three-year non-competition period is continued.

As of September 2020, IFL posted total assets of IDR 1.63 trillion, sales of IDR 2.13 trillion, and an operating profit of IDR 214.10 billion. PepsiCo licenced brand products contribute 30% of all IFL revenues. (LK/AC)

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