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PepsiCo to reportedly halt production of Cheetos, Doritos and Lay's in Indonesia

PepsiCo to reportedly halt production of Cheetos, Doritos and Lay's in Indonesia

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PepsiCo is reportedly ceasing production of three of its brands, Cheetos, Doritos, and Lay's, in Indonesia. This comes as multiple media outlets including CNN Indonesia said PepsiCo's shares has been acquired by Indofood Consumer Branded Products (ICBP) Sukses Makmur, after the latter purchased its shares this month through their joint venture company, Indofood Fritolay Makmur. With this acquisition of shares, marketing for PepsiCo's three brands in Indonesia is said to be temporarily halted.

According to CNN, the acquisition was valued at IDR494 billion (approximately US$35 million), and has positioned ICBP to hold 99.99% of the Indofood Fritolay Makmur shares. PepsiCo is an affiliate of Fritolay Netherlands Holding BV.

The article added that the transaction will result in the termination of licencing agreement between Indofood Fritolay Makmur and PepsiCo, and is expected to be completed within six months of the acquisition. Additionally, CNN reported that Fritolay, PepsiCo, or other affiliated companies will not be allowed to produce, sell or distribute snack products in Indonesia that is in competition with Indofood Fritolay Makmur products for three years after the termination. MARKETING-INTERACTIVE has reached out to Indofood for additional information.

ICBP produces and markets a diverse range of consumer branded products that provide convenient solutions for consumers. The products span across various categories such as noodles, dairy, snack foods, food seasonings, nutrition and special foods, and beverages. According to its official website, Indofood has progressively transformed over the last two decades into a Total Food Solutions company with operations in all stages of food manufacturing, from the production of raw materials and their processing, to consumer products in the market.

(Photo courtesy: 123RF)

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