The High Growth in The Food and Beverage Industry

Posted on December 28th, 2010 at 8:27 am by Farah Fitriani


TEMPO Interactive, Jakarta:Adhi Lukman, the Indonesia Food and Beverage Businessmen Association chief, said the beverage industry in Indonesia had grown by 10 percent on average each year over recent years.

The high growth in the food and beverage industry, said Suroso Natakusuma, the Food and Beverage Industry Products Information Center executive, was due to rising market demand and greater interest from investors.

According to Adhi, although the average growth of the beverage industry is 10 and 11 percent, some producers have grown by 15 percent, while others expanded by 5 percent. Sales of middle-range beverages grew higher than low or high-end beverages due to more opportunities in that niche.

Growth of five percent for high-end beverage producers was considered high, while the large-scale beverage industry boosted sales by releasing new products on the market. “New products from high-level producers can increase the sales,” Adhi said.

Coca-Cola Amatil Indonesia, is part of the expanding beverage market that is benefiting from the growth of consumers purchasing middle-group beverages such as Coke. The number of middle-group beverage consumers has risen steadily by nine percent per year. The number of Coca-Cola’s middle group consumers is now 131 million.

To penetrate the market, Coca-Cola Amatil Indonesia has announced an investment plan worth US$300 million over the next three years. The investment is expected to add to Coca-Cola Amatil Indonesia’s contribution by more than 10 percent for the main company. On average, Coca-Cola Amatil Indonesia receives a US$600 million per-year revenue.

According to Terry Davis, Coca-Cola Amatil Group’s managing director, Coca-Cola currently controls 40 percent of the tea and juice market. In the future, sales are projected to grow by 10 percent per year. “Sales now grow by an average of 7 to 8 percent per year,” he said.

Charles Rossi, from Coca-Cola Amatil Indonesia’s sales and marketing division, said that to boost sales, Coca Cola products must be available in every location to reach consumers, especially young people. Therefore, Coca-Cola Amatil Indonesia is collaborating with PT Taman Impian Jaya Ancol as a recreational center manager.

According to Rossi, market penetration due to strong market competition. “Sosro is our toughest competitor in Indonesia,” he said. To compete with Sosro, his office has offered Fresh Tea products in cooperation with KFC outlets nationwide.

Rossi said his office would aim at a bigger market, such as universities, schools, outlets and malls, which are much visited by consumers.

News Source: Tempo Interactive

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