Jakarta, CNN Indonesia —
PT Indofood CBP Sukses Makmur Tbk (ICBP) will stop the production of snack products (snack) Lays, Doritos, and brands Cheetos starting August 2021.
This information was conveyed by the company through the IDX information disclosure last February. However, the company has not updated the information regarding the plan to stop selling the brand snack the.
ICBP Sukses Makmur Corporate Secretary Gideon A Putro said that the termination was carried out because the trademark was produced by PepsiCo.
Meanwhile, PepsiCo as an affiliate of Fritolay Netherlands Holding BV was officially acquired by PT Indofood CBP Sukses Makmur Tbk. Indofood bought all of Fritolay’s shares in the joint venture company PT Indofood Fritolay Makmur (IFL) last February.
Gideon conveyed the transaction value for the purchase of all PepsiCo shares in IFL amounting to Rp494 billion. Now, Indofood CBP Sukses Makmur is a 99.99 percent stake in IFL.
Gideon said the transaction would also terminate the license agreement with PepsiCo once IFL had completed all preparations for the termination of production and sales of PepsiCo products.
This must be completed within six months of the share purchase transaction. If counted since this February, then the license agreement with PepsiCo ends this month.
“Fritolay, PepsiCo and/or other affiliated parties may not produce, package, sell, market or distribute any snack products in Indonesia that compete with IFL products for three years from the end of the transition period,” Gideon said in an official statement delivered to the Indonesia Stock Exchange (IDX), quoted Thursday (18/2).
He stated that this share purchase transaction was not a material transaction as regulated in OJK Regulation Number 17/POJK.04/2020 concerning Material Transactions and Changes in Business Activities.
In addition, this is also not an affiliated transaction and conflict of interest as regulated in OJK Regulation Number 42/POJK.04/2020 concerning Affiliate Transactions and Conflict of Interest Transactions.
It is known, several PepsiCo products marketed in Indonesia, including Lays, Doritos, Cheetos. With this transaction, the marketing of these products in Indonesia will stop temporarily.
The editor has contacted Gideon to confirm the plan to stop the distribution of the three snacks this month, but until the news was published the person concerned has not responded.
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