Suntory Beverage & Food Limited and Garudafood Group (Garudafood), a leading packaged beverage and food company in Indonesia, agreed to establish a joint venture in Indonesia for the production, sales and distribution of Non alcoholic beverage products.
Garudafood will contribute its existing beverage business into a new joint venture company in which SBF will own a 51% stake. Concurrently, SBF will acquire a 34% stake in PT Sinar Niaga Sejahtera ("SNS"), the exclusive sales and distribution arm of Garudafood's beverage and food products.
Garudafood is one of the largest packaged beverage and food companies in Indonesia. Garudafood owns a portfolio of leading beverage brands such as Okky and Mountea which command the largest market share for cup-packaged jelly and tea beverages in Indonesia. The new joint venture is a compelling platform for Suntory to further engage in its business development across Indonesia, which is one of the fastest growing consumer markets with significant growth potential embedded within its population of more than 230 million citizens. Garudafood's local knowledge, experience and capabilities in production, sales and distribution, combined with Suntory Group's global strength and experience in new product development, production technology and marketing will lead to new and exciting opportunities for the joint venture.
The joint venture also provides Suntory Group with a firm foothold in Indonesia, a country which continues to experience rapid economic growth as part of Suntory Group's strategy to continue expanding its business and developing the Suntory brand.
This new collaboration reinforces Suntory Group's commitment to its globalization strategy and generating shareholder value across its beverage business in Japan, Asia, Europe and Oceania regions.