PepsiCo Sells Stake in Indonesian Snack Joint Venture Indo Food Fritolay

Global food and beverage giant PepsiCo is exiting the Indonesian snack market after more than 30 years following the sale of its stake in joint venture company Indofood Fritolay, Oils & Fats International reported citing Food Business Africa report on 21 February.  PepsiCo’s 49% share in PT Indofood Fritolay Makmur (IFL) had been acquired for about US$35.13M by Indofood CBP Sukses Makmur, with Indofood now owning 99.99% shares in the company.

Under the terms of the agreement, IFL would stop the production and sale of the PepsiCo snack products Cheetos, Lay’s and Doritos,  and PepsiCo would not market competing products in the country. “Fritolay, PepsiCo and/or its other affiliates may not manufacture, package, sell, market or distribute any competing snack food products in Indonesia for three years from the expiry of the transition period,” the Indofood CBP statement said.

The move followed PepsiCo’s departure from its snack business in the Philippines, Food Business Africa said, with the company choosing instead to export snack brands such as Cheetos, Lay’s, Doritos, and Sunchips from overseas.