Pepsi declares 'cola' war in Indonesia<\/p>\n
JAKARTA (JP): After some years of absence in Indonesia, Pepsi-
\nCola International (PCI) yesterday declared cola war on the \"real
\nthing.\"<\/p>\n
Lance Tanaka, president of PCI for the Asia-Pacific region,
\ntold a press conference here yesterday that Pepsi was geared up to
\nincrease its share of the country's carbonated drink market from
\nless than five percent now to 35 percent within the next five
\nyears.<\/p>\n
Sung Il Lee, PCI's Asia-Pacific marketing director, expressed
\nhis optimism about reaching the target. PCI, known as PT Pepsi-Cola
\nIndo Beverage, the joint venture between PCI and the Salim Group,
\nhas prepared innovative marketing strategies, he added.<\/p>\n
He said that this weekend Pepsi will start a massive
\nadvertising campaign for its main brands, such as Pepsi-Cola, Pepsi
\nMax, 7UP and Miranda Orange, on the five local private television
\nstations -- RCTI, SCTV, TPI, ANteve and Indosiar. The last belongs
\nto the Salim Group.<\/p>\n
Pepsi had previously been franchised to the Mantrust Group in
\n1987 but the group, faced with huge debts in the early 1990s, then
\nsold their franchise license to the Salim Group in 1993.<\/p>\n
Evaryanti Hutapea of the Salim Group said that her group has
\na 51 percent stake in Pepsi Cola Indo Beverage, with PCI holding
\nthe rest.<\/p>\n
She also cited Pepsi Cola Indo Beverage's investment of some
\nUS$17 million in two bottling plants in Semarang, Central Java and
\nin Cikampek, West Java.<\/p>\n
The plant in Semarang, with an annual capacity of over 60
\nmillion bottles and cans, started its commercial production last
\nyear. The other one in Cikampek, with an annual capacity of 250
\nmillion bottles and cans, will come on stream at the end of this
\nyear, with an initial production level of 50 million bottles and
\ncans.<\/p>\n
Competitor<\/p>\n
Coca-Cola International, Pepsi-Cola's biggest competitor,
\nlaunched its first Indonesian-made advertisement on Tuesday night
\nand seemed unperturbed by the arrival of Pepsi.<\/p>\n
\"We have dominated around 90 percent of the carbonated drinks
\nmarket in Indonesia. It will not be easy to compete with us,\"
\nManaging Director of PT Coca Cola Indonesia John Brady said.<\/p>\n
The absence of Pepsi-Cola in Indonesia for three years has
\nprovided Coca-Cola with more opportunities to tap the market
\nthrough cooperation with franchise restaurants such as Pizza Hut
\nand Kentucky Fried Chicken. In the United States, home to both
\nColas, Pizza Hut serves only Pepsi.<\/p>\n
Coca Cola, which has been sold in Indonesia since 1932, now
\nhas 12 bottling plants and over 600,000 retailers, according to
\nCoca Cola's Public Relations Manager Jannus Hutapea.<\/p>\n
Although the competition from Coca Cola will be very tough,
\nLee said, Pepsi will be able to expand its market given the large
\npotential market of carbonated drinks in the country.<\/p>\n
\"For carbonated drinks, the per capita consumption in
\nIndonesia is only around 10 servings (per year) -- one serving is
\nabout eight ounces or average size of glass,\" Lee told The Jakarta
\nPost. \"It is very small compared with its neighboring countries
\nlike Malaysia, Singapore and the Philippines.\"<\/p>\n
Carbonated beverage consumption in Malaysia has reached 70
\nservings per person per year, in Singapore 170 and in the
\nPhilippines 65. In the United States the number goes as far as 350
\nservings per person per year.<\/p>\n
In Indonesia, the situation is a bit different because the
\nbeverage market is still dominated by bottled water and
\npackaged\/bottled tea, said Lee.<\/p>\n
\"But we believe that the experience and expertise of the Salim
\nGroup on local markets will benefit us tremendously in tapping and
\nchanging the beverage market,\" Lee said. (als\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pepsi-declares-cola-war-in-indonesia-1447893297",
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