SPECIAL ADVERTISING SECTION(^4) Indonesia
Indonesian’s largest bread maker has all the right ingredients to grow its brand both at home and overseas.
INDOSARI:
A NEW RECIPE FOR SUCCESS
As the producer of Indonesia’s best-
known cake and bread brands, PT Nippon
Indosari Corpindo Tbk (Indosari) is well
positioned to take advantage of the
country’s robust economy and rising
disposable incomes.
Southeast Asia’s largest economy
grew at an average rate of 5.8% over the
past decade, and is expected to expand
by a further 5.3% in 2018, according to
forecasts by the World Bank.
More affluent Indonesians now seek
out higher quality food products, such as
those offered by Indosari’s flagship brand
Sari Roti. The company was established in
1995, and a year later it started producing
Sari Roti breads from its first factory at
Cikarang, West Java.
Riding on the success of the brand,
Indosari has grown to become the largest
producer and distributor of packaged
bread in Indonesia, with 10 factories across
the archipelago making 100 different
bread products.
The company’s first-mover advantage
in selling products that are halal, high
quality and affordable has been key to its
popularity with consumers. This success
is also underpinned by the group’s
expanding high-tech manufacturing
capabilities as well as a comprehensive
distribution network that exceeds 67,500
points of sale throughout Indonesia.
Apart from selling its products in
supermarkets and convenience stores,
the company also organizes a distribution
system of more than 3,300 mobile tricycle
carts to penetrate urban neighborhoods
and shops in rural parts of Indonesia.
In terms of technology, the company
utilizes advanced baking techniques
acquired through the support of its
major shareholder Pasco Shikishima
Corporation, Japan’s second-largest
bread company.
Collectively, Indosari’s competitive
advantages have translated into an
impressive financial performance over the
years. Revenue grew almost 16% in 2016
from a year earlier. Meanwhile, earnings
per share attributable to the owners of
the parent entity expanded 3.5% over the
same period.
A Slice of the Global Pie
Leveraging its success in building a brand
powerhouse in Indonesia’s bread industry
over the past 22 years, Indosari is now
expanding outside its home market.
In February last year, it entered into a
joint venture in the Philippines with Monde
Nissin Corporation, a leading maker and
distributor of snacks, noodles and biscuits
in the country.
Indosari holds a at 55% stake in the
joint-venture company, Sarimonde
Foods Corporation, with Monde Nissin
Corporation’s owning the remaining
45%. As the second-largest market in the
Association of Southeast Asian Nations,
the Philippines is a lucrative market that
shares many similar characteristics with
the Indonesian market.
Indosari will enter the Korean market
this year after reaching an agreement with
the country’s leading coffee franchise,
Caffe Bene. The deal will give Indosari
the exclusive right to supply cakes and
pastries in 576 Caffe Bene outlets in South
Korea from December.
Having made the leap abroad, Indosari
is now set to showcase its high quality
products and business prowess on a far
bigger stage, even as it continues to pursue
growth in its fast-growing home market.
Indosari’s mini-market profile
Raising brand awareness http://www.sariroti.com