TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Pepsi out, Coca-Cola jacks up production in Indonesia as carbonated drink sales decline

Riska Rahman and Wahyoe Boediwardhana (The Jakarta Post)
Premium
Jakarta/Surabaya, East Java
Tue, October 8, 2019

Share This Article

Change Size

Pepsi out, Coca-Cola jacks up production in Indonesia as carbonated drink sales decline Carbonated drinks in plain packaging. (Shutterstock/File)

A

s the food and beverage industry faces a persistent decline in carbonated drink sales in Indonesia that is sending Pepsi out of the market, competitor Coca-Cola is expanding its operations in the country.

The famous American carbonated soft drink Pepsi will no longer be available in Indonesian stores and restaurants in the near future as its producer is to sever relations with its local partner, food giant Indofood CBP (ICBP), on Oct. 10.

In an official statement on Monday, publicly listed ICBP said its subsidiary, Anugerah Indoofood Beverage Makmur (AIBM), had decided to not renew its latest five-year agreement with PepsiCo Inc.

“AIBM and PepsiCo agreed to not extend the exclusive bottling agreement for commercial reasons,” ICBP spokesperson Gideon A. Putro said in the statement, which was published on the Indonesia Stock Exchange (IDX) website.

Under the agreement, AIBM held the exclusive rights to produce, sell and distribute all non-alcoholic drinks using PepsiCo’s brands, including Pepsi, Mirinda, 7Up and Mountain Dew.

The news about AIBM and PepsiCo discontinuing their partnership has been circulating for months and employees were reportedly informed in advance about the decision.

Indonesian Food and Beverage Producers Association (Gapmmi) chairman Adhi S. Lukman said the move was expected since sales of carbonated drinks have continued to decline in the past few years.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Pepsi out, Coca-Cola jacks up production in Indonesia as carbonated drink sales decline

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.