Unilever to exit SariWangi as Indonesia tea business changes hands in US$89m deal

Unilever is set to divest its tea business in Indonesia, agreeing to sell the SariWangi brand to Savoria Kreasi Rasa in a deal valued at around IDR 1.5 trillion (US$89 million). The buyer is an affiliate of local conglomerate Djarum Group, marking a significant shift in one of Indonesia’s most established fast-moving consumer goods categories.

The transaction will be executed through Unilever Indonesia, the London-headquartered group’s listed local unit. In a regulatory filing, the company confirmed that both parties had signed a business transfer agreement, with completion targeted by 2 March, subject to customary closing conditions. Unilever separately stated that completion is expected in the first half of 2026.

The divestment forms part of Unilever’s broader portfolio optimisation strategy, as it narrows its focus to fewer, larger and more scalable categories to drive long-term growth.

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“We are confident that this transaction will position the tea business for its next phase of growth, while sharpening Unilever Indonesia’s focus on priority, higher growth segments and reinforcing our commitment to sustainable shareholder value,” said Benjie Yap, president director of Unilever Indonesia.

Unilever Indonesia acquired SariWangi in 1989, at a time when tea bags were still relatively new to the Indonesian market. Over more than three decades, the brand helped popularise the format nationwide and became a household staple, known for its strong distribution, consistent quality and high brand recall.

Today, SariWangi remains one of the leading brands in Indonesia’s tea-bag segment, with a sizeable market share built over decades and strong loyalty among local consumers. However, despite its prominence, tea has become a smaller part of Unilever Indonesia’s overall financial picture. The business contributed approximately 3.1% of net profit and about 2.7% of total revenue.

The transaction value is significant relative to the company’s balance sheet, amounting to roughly 45% of Unilever Indonesia’s total equity based on financial statements as at 30 September 2025.

This is not Unilever’s first portfolio move in Southeast Asia’s largest economy. Last year, the company divested its ice cream business, Walls, selling it to Magnum Ice Cream Indonesia. Together, these transactions underline a deliberate effort to streamline operations and reallocate capital toward faster-growing and higher-margin segments.

Indonesia’s FMCG market has become increasingly competitive, with local and regional players gaining ground and price sensitivity rising among consumers. Unilever has also faced external pressures, including consumer boycotts linked to the Gaza conflict, which have weighed on brand sentiment in parts of the market.

Despite these headwinds, the company delivered a strong financial performance in the third quarter of 2025. Unilever Indonesia reported net sales of IDR 9.4 trillion (US$560 million), up 12.4% year on year, while net profit surged 117% to IDR 1.2 trillion (US$71 million).

For Savoria Kreasi Rasa, the acquisition offers an opportunity to take over a legacy brand with deep cultural roots and reposition it for its next phase of growth under local ownership.

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