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Cheetos, Lays to leave stores in August
The corporate action also marks the end of a 30-year partnership between ICBP and PepsiCo in Indonesia.
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I
ndonesian consumers will no longer see popular snacks such as Cheetos and Lays in supermarkets in August this year, following publicly listed processed food company Indofood CBP Sukses Makmur’s (ICBP) move to acquire American food and beverage firm PepsiCo’s shares in their joint venture, PT Indofood Fritolay Makmur (IFL).
On Wednesday, ICBP spent Rp 494 billion (US$35.26 million) to acquire a 49 percent stake in Fritolay Netherlands Holding B.V, an affiliate company of PepsiCo within IFL, according to a public disclosure statement available on the Indonesia Stock Exchange (IDX) website.
The corporate action also marks the end of a 30-year partnership between ICBP and PepsiCo.
Following the transaction, IFL will conclude its licensing agreement with PepsiCo after a six-month transition period, according to the statement. During that time, IFL will gradually cease the production and sales of products related to PepsiCo’s brands, including Lays and Cheetos.
“Fritolay, PepsiCo and their other affiliates may not manufacture, package, sell, market or distribute any competing snack food products in Indonesia for three years from the expiry of the transition period,” ICBP corporate secretary Gideon A. Putro said in a statement on Wednesday.
Meanwhile, PepsiCo said in a statement that it would comply with the decision, adding that it would continue to offer Quaker Oat products in Indonesia.
"Indonesia's snack industry has a strong prospect and its market will continue to be an integral part of our long-term growth strategy," the company said.
“We hope to come back to Indonesia’s market with products such as Lays, Doritos and Cheetos as soon as possible.”
ICBP shares dipped 0.85 percent to Rp 8,750 apiece at the close of trading on Thursday. (eyc)
