Singapore-listed candy group Delfi has announced a new venture in Indonesia – its largest market – a month after pulling out of a different tie-up in the country.
Delfi is to work with Japan’s Yuraku Confectionery Company to produce and sell chocolate products in Indonesia under the Delfi brand.
Last month, Delfi said it would pull out of PT Ceres Meiji Indotama (CMI), a confectionery manufacturing joint venture in Indonesia with Japanese pharma-to-food group Meiji Holdings. Delfi is to sell its 50% stake in CMI to Meiji.
The Delfi Yuraku venture will set up manufacturing, as well as sales and marketing functions, in Indonesia. Delfi, which will own a 60% stake in the venture, said its own local distribution arm would handle the products made by the venture.
John Chuang, Delfi’s CEO, said the tie-up will allow the company “to extend the breadth of our portfolio of snacking products, which is enjoying increasing consumer demand due to the attractiveness of these products because of lower price points, convenience and lighter products”.
Chuang added: “We believe the JVC’s products, when launched, will fit this perfectly with the growth potential for the products in Indonesia driven by the relatively young and growing population and its suitability for both the modern and traditional trade channels.”
Yuraku president Tomoharu Kawai added: “Taking advantage of both companies’ strengths, I am convinced that our partnership can create tasty and unique products for the people in not only Indonesia but possibly other Asian countries.”
Delfi said the deal was subject to regulatory approval.
The company’s CMI venture with Meiji is expected to end during the second quarter of the year. Delfi will continue to distribute the products marketed by its former venture with Meiji. Delfi said last month the plan to end their joint venture is the result of a “mutual and amicable agreement”.