PepsiCo has quit a snacks joint venture in Indonesia, selling its minority stake to local partner PT Indofood CBP Sukses Makmur.
The US-based food and beverages giant did not provide a reason for its exit from the venture after a 30-year partnership in Indonesia in a statement provided to just-food, although this publication has asked PepsiCo to clarify.
PepsiCo also did not reveal how much it will gain financially from withdrawing from the Lay’s, Doritos and Cheetos snacks partnership – PT Indofood Fritolay Makmur (IFL) – nor the size of the stake.
However, PT Indofood confirmed in a separate statement, filed with the Jakarta Stock Exchange, that it has acquired the 49% holding from PepsiCo for IDR494bn (US$34.9m). Under the terms of the agreement signed on 17 February, the company has six months to end the licensing agreement with PepsiCo.
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While the terms carry caveats around the manufacturing and distribution of PepsiCo's snacks, the Nasdaq-listed company will continue to supply Quaker oats products in Indonesia: "We look forward to returning to the market with our products such as Lay's, Doritos and Cheetos as soon as possible, creating more smiles with every sip and every bite."
The statement continued: "IFL will discontinue manufacturing, packaging, marketing, sale and distributing PepsiCo products in Indonesia. For the three years which follows, PepsiCo and its affiliates have agreed not to manufacture, package, sell, market or distribute any competing snack food products in Indonesia.
"Nonetheless, the outlook for the snacks industry in Indonesia is strong and the market will remain a key part of our long-term growth strategy."