Effem enters RI candy market<\/p>\n
MEDAN (JP): PT Effem Indonesia, a subsidiary of U.S. based
\nglobal snack food and pet-food makers Mars Inc., said it had
\nearmarked a total of US$20 million in new investment this year to
\nmanufacture various candies at its new plant in Medan, North
\nSumatra.<\/p>\n
Effem president Noel D. Janetski said the company expected to
\nbe able to have a 1.5 percent share of the country's candy market
\nduring the first year of the new plant's operation.<\/p>\n
\"We're confident that we'll be successful in running our new
\nbusiness as we know Indonesia and its people well,\" Janetski said
\nin his speech at the inauguration ceremony of the new plant on
\nThursday.<\/p>\n
He hoped the candy manufacturing unit would be able to raise a
\ntotal of $5 million in sales next year.<\/p>\n
But, in the course of a three-year period, it would be able to
\nbook $10 million a year, he said.<\/p>\n
Effem started its operation in 1996 by constructing a cocoa-
\nprocessing plant in Makassar, South Sulawesi, in which most of
\nthe products are exported to other Mars subsidiaries worldwide.<\/p>\n
The Makassar plant processes more than 15,000 tons of cocoa
\nbeans a year.<\/p>\n
Janetski said that the Medan candy plant would manufacture
\naround 30,000 tons of fruit-flavored candies per year, using the
\nsingle product \"Starburst\" during its initial production.<\/p>\n
The company is scheduled to kickstart promotional activities
\nfor 31 different types of fruit-flavored candies on Nov. 8 at the
\nJakarta Convention Center.<\/p>\n
\"Popular boy bands Sheila on 7 and Gigi as well as MTV DJs
\nwill help promote our new products,\" Hien Lane, Effem's marketing
\nmanager said.<\/p>\n
The country's candy market stands at $319 million in 2000 with
\na wide range of products including chewy candy, jelly, hard candy
\nand lollipops. The market is dominated by popular brands like
\nSugus, Relaxa, Hexos, Yupi.<\/p>\n
Janetski said his company decided to acquire the candy plant
\nin Medan from a local candy-maker due to its strategic location,
\nboth in terms of the domestic and international market.<\/p>\n
Medan was near to Java, the center of the domestic market, but
\nit was also near to Malaysia, Singapore, Thailand and other Asian
\ncountries as export destinations, he said.<\/p>\n
Also present at the inauguration ceremony was Governor of
\nNorth Sumatra T. Rizal Nurdin.<\/p>\n
Rizal welcomed Effem's new investments in Medan, saying that
\nthe new plant was the 255th foreign direct investment project in
\nthe province.<\/p>\n
\"Effem's investment will provide greater job opportunities for
\nthe local people and also generate income for the province's
\ncoffers,\" he said.<\/p>\n
Rizal, however, warned that the company must take into account
\nthe local social and cultural conditions when running its
\nbusiness.<\/p>\n
\"Effem must keep up a good relationship with its employees by
\nproviding fair and proper salaries. It must also place some
\nconcern on environmental issues such as pollution and the use of
\nenvironmentally-friendly methods in its manufacturing process,\"
\nhe said. (dmr)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/effem-enters-ri-candy-market-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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