PepsiCo Re-enters Indonesia with a New Snack Factory

Sep 2023

American food and beverage company PepsiCo is reportedly making a comeback in Indonesia with the construction of a snack factory in West Java. This move follows its separation from its local partner two years ago. The new factory, part of PepsiCo’s USD 200 million investment commitment in Indonesia over a decade, is set to be completed by 2025. Construction for the snack factory in West Java began on August 30, 2023.

In 2021, PepsiCo’s partner, Fritolay Netherlands Holding B.V., and Indofood CBP, a division of the Indofood Group, commenced a collaborative venture responsible for manufacturing a range of snack brands including Lay’s, Cheetos, and Doritos. Regrettably, the venture came to an unexplained halt when Indofood acquired PepsiCo’s minority share.

PepsiCo is embarking on the construction of its new factory in Indonesia independently, committing to predominantly sourcing raw materials like corn and palm oil from sustainable origins. Additionally, the company has committed to utilizing renewable energy sources for the facility. These sustainability initiatives align with PepsiCo’s global packaging objective to increase the proportion of reusable solutions for delivering its total beverage servings from 10% to 20% by 2030.

This commitment stems from a shareholder proposal submitted by As You Sow, a corporation promoting corporate responsibility. The proposal urged PepsiCo to disclose measures for swiftly reducing reliance on single-use plastic packaging, with a particular emphasis on establishing more robust targets.

(Source: Marketing-Interactive)

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