Jakarta, CNBC Indonesia – Who doesn’t know Lays, Cheetos and Dorito. But get ready this product will stop circulating in the market starting this month.
This is because the producer PT Indonesia CBP Sukses Makmur Tbk (ICBP) will immediately stop the production and sales of the three starting August 17, 2021. This has been conveyed long ago by the company.
The termination of the agreement between ICBP and Fritolay Netherlands Holding BV, the licensing of these three product brands is the reason. The agreement was discontinued due to commercial reasons.
Indofood has the license for this snack through a joint venture with Fritolay, namely PT Indofood Fritolay Makmur (IFL). The termination of their cooperation was marked by the purchase of all IFL shares by ICBP of Rp 494 billion.
This amount is equivalent to 49% of the total shares issued by the IFL on 17 February 2021. With the expiration of this license agreement, all affiliated with Fritolay and other affiliated companies are not allowed to carry out production.
This starts from packaging, selling and marketing any snack products in Indonesia that compete with IFL products. This is valid for three years after the transition period in August ends.
In the future, with these three snacks no longer being marketed, ICBP will replace them with brands developed by Indofood themselves. Such as Chitato, Qtela, Chiki and Jetz.
“Currently, we have our own brands, such as Chitato, Qtela, Chiki and Jetz which will continue to be developed… ICBP understands very well the tastes and choices of snacks from the Indonesian people, and will continue to develop its portfolio to maintain its position as market leader,” said Gideon A. Putro, Corporate Secretary of Indofood CBP CNBC Indonesia A month ago.
Previously, the company’s carbonated drink, Pepsi, had stopped its production in Indonesia since October 10, 2019. In Indonesia, Pepsi collaborated with PT Anugerah Indofood Barokah Makmur (AIBM), which is also a subsidiary of Indofood CBP.
To note, Fritolay is a manufacturer of snacks affiliated with PepsiCo. The company has brand licenses for products marketed by ICBP, such as Lay’s Cheetos and Doritos.
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