30-8-2023 (JAKARTA) American food and beverage giant PepsiCo has initiated the construction of a snack factory in West Java, Indonesia. This move marks PepsiCo’s return to Southeast Asia’s largest economy after ending its partnership with a local company two years ago.
The factory is a part of PepsiCo’s commitment to invest $200 million in Indonesia over a ten-year period. It is anticipated that the factory will commence snack production by the year 2025.
In 2021, PepsiCo’s affiliate, Fritolay Netherlands Holding B.V., and Indofood CBP, a subsidiary of Indonesia’s largest food conglomerate, Indofood Group, dissolved their 30-year joint venture without disclosing specific reasons. This dissolution occurred when Indofood Group purchased PepsiCo’s minority stake in the venture.
During the joint venture, a range of snacks were manufactured under various brands, including Lay’s, Cheetos, and Doritos.
In its latest endeavour, PepsiCo is forging ahead without a local partner. The company has made commitments to prioritize sustainability by sourcing most of its snack raw materials, such as corn and palm oil, from sustainable sources. Additionally, PepsiCo plans to utilize renewable power sources in its operations.
