Suntory Beverage & Food Exits Nonalcoholic Drinks Business in Indonesia
By Fabiana Negrin Ochoa
Suntory Beverage & Food is exiting its nonalcoholic beverage business in Indonesia after 12 years of selling bottled tea, jelly drinks and other products in the Southeast Asian country.
The Japanese company will transfer its 75% stake in Suntory Garuda Beverage to Garudafood, it said in a statement on Thursday. After the transfer, Suntory's main focus in Indonesia will be the health-enrichment product category.
It didn't disclose the price of the transaction, which is due to be completed in the first half of next year, citing confidentiality obligations.
The Japanese company, known for its namesake whisky and beers, among other products, said the transfer will have a minor impact on its consolidated business results.
For the first nine months of the year, Suntory's Asia-Pacific business reported revenue of 273.7 billion yen ($1.94 billion), up 6.2% from a year earlier. Past reports showed the region, excluding Japan, contributed about 19% to sales in 2022 and about 31% of profit in 2021.
Suntory Garuda Beverage produces a range of beverages across facilities in Indonesia. Garudafood is one of the biggest food-and-beverage businesses in Indonesia, with products ranging from biscuits and nuts to salad dressing and milk drinks.
Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com
(END) Dow Jones Newswires
December 28, 2023 21:41 ET (02:41 GMT)
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