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Indonesia’s iconic Bintang beer hits shelves in US
Cheers: Multi Bintang Indonesia president director Michael Chin (left) poses for a photo with United States Embassy counselor for commercial affairs Rosemary Gallant (second left), Multi Bintang president commissioner Cosmas Batubara (third left), the Industry Ministry’s acting director general of agroindustry Achmad Sigit Dwiwahjono (third right), Investment Coordinating Board (BKPM) Region IV director on investment supervision Dedi Latip (second right) and Customs and Excise Directorate General head of excise label subdivision Gunawan Triwibowo during an event to mark the export of Bir Bintang to the US in Tangerang on Monday
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C
heers: Multi Bintang Indonesia president director Michael Chin (left) poses for a photo with United States Embassy counselor for commercial affairs Rosemary Gallant (second left), Multi Bintang president commissioner Cosmas Batubara (third left), the Industry Ministry’s acting director general of agroindustry Achmad Sigit Dwiwahjono (third right), Investment Coordinating Board (BKPM) Region IV director on investment supervision Dedi Latip (second right) and Customs and Excise Directorate General head of excise label subdivision Gunawan Triwibowo during an event to mark the export of Bir Bintang to the US in Tangerang on Monday. (JP/Umair Rizaludin)
Publicly listed brewing company Multi Bintang Indonesia has shipped the first batch of its iconic Bintang beer to the United States, with the product now available on four continents.
The company already exported its flagship beer to the United Kingdom, the Netherlands, Japan, South Korea and Australia.
“We are proud to announce that Bintang beer, which has always been crafted by the leading experts in Indonesia, will be available on four continents,” Multi Bintang president director Michael Chin declared during a ceremony at the company’s brewery in Tangerang, Banten, on Monday.
Plans for market expansion to the US had been in the pipeline ever since the company gauged the popularity of Bintang beer among foreign tourists — particularly surfers — who visit Indonesia for its picturesque beaches and challenging waves, he added.
“Thanks to our distinctive recipe, [American] tourists consider Bintang beer to be an essential companion of their adventures in Indonesia. They will certainly be pleased to know that their favorite beer will soon be available in their homeland,” Michael said.
US Embassy counselor for commercial affairs Rosemary Gallant expressed her enthusiasm about the market expansion.
“Indonesia and the US will soon celebrate the 70th anniversary of their blooming diplomatic relationship. [Bintang’s] expansion to the US market is a testament to our lasting friendship,” she said during the ceremony.
Despite the fervent excitement surrounding the market expansion, however, the company was still tight-lipped about the initial volume and revenue target of its exports.
“The most important aspect [of market expansion] is always how the brand is going to be perceived overseas. So right now, we are not so much focused on the exact figure of our revenue target as we are on establishing a brand image,” Michael told reporters, adding that Multi Bintang would not make any adjustments to its Bintang beer recipe when the product hits American shelves.
In the US, Bintang beer will compete with heavyweights in the beer industry such as Budweiser, Guinness and Corona. Michael said that in order to successfully penetrate the American market, Multi Bintang would focus its distribution in Southern California and Hawaii in the early stages of its expansion. In addition to premium supermarkets, the company would also seek partnerships with Asian-American restaurants to complement their menus with Bintang beer, he added.
“This is in line with our commitment to establishing a brand image. We are targeting Southern California and Hawaii in this early stage as they are home to surfer communities whom we expect will warmly welcome the arrival of Bintang beer,” he said.
The beverage industry saw 8 percent growth in the first quarter of this year, according to the Industry Ministry’s acting agro industry director general, Achmad Sigit Dwiwahjono. The industry has also contributed to 35.4 percent of Indonesia’s gross domestic product in the same period. In 2017, alcoholic beverage exports totaled $7.6 million.
In Southeast Asia, Indonesian beer products competed with those from Vietnam and Thailand, Achmad said.
“Despite our Muslim-majority demographic, our beer industry still compares favorably with our neighbors in the region,” Achmad said.
In 2017, Multi Bintang — listed on the Indonesia Stock Exchange under MLBI — posted Rp 1.32 trillion (US$90.2 million) in net profit, a 34.8 percent growth year-on-year (yoy), thanks to improved revenue management and cost-efficiency measures. The sales composition of its alcohol and non-alcoholic products was Rp 3.04 trillion and Rp 340.21 billion, respectively. (rfa)
