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Indonesia’s important role in CCA’s growth plans

Coke in canCoca-Cola Amatil hosted an Investor Briefing and Management Presentation in Jakarta, Indonesia, highlighting the Indonesian business’ important role in the company’s growth plans.

Group managing director Alison Watkins said CCA was a long-established business in the Indonesian market, with an unrivalled sales and distribution network.

“We’ve been an Indonesian manufacturer since 1992, and currently serve more than local 720,000 outlets from traditional trade to and the rapidly growing modern trade market,” Watkins said.

“In terms of volume, Coca-Cola Amatil Indonesia (CCAI) is the second-largest contributor to the Amatil business. So it’s an important market for us, and we’re keen to showcase it for investors and the community.

“Our Indonesian team have made solid progress in collaboration with The Coca-Cola Company across all of our strategic priorities. This puts us in an excellent position for driving further growth. We’ll be taking the opportunity to highlight our progress and outline our plans for the future.”

CCAI president director Kadir Gunduz reiterated his optimism of the market, “We’re a well-established business and long-term operator in this country, so we understand the challenges and, most importantly, the opportunities.”

Marking its 25 years of operating in the country, throughout 2017 CCAI inaugurated several new facilities including a new PET line in South Sumatra, a new Mega Distribution Centre and Preform plant in East Java and an Affordable Small Sparkling Package (ASSP) line in Cikedokan West Java.

The ASSP technology is exclusively developed for The Coca-Cola System to produce high quality-lighter plastic bottles with glass coating that will increase packaging durability. The line installed in CCAI Cikedokan is the second ASSP line in the world and the first of its kind in Indonesia.

Gunduz also added that there has been significant investment in people capability building as the foundation of the growth strategy. Currently CCAI runs eight training academies in six functions, providing more than 51,000 training days per year.

“I am pleased with our strong progress and excited to continue to grow stronger with our people, our communities, and our partners,” said Gunduz.

CCA’s Alcohol & Coffee business was pursuing international opportunities, particularly an opportunity to expand in Indonesia. The opportunity builds on an exclusive master supply agreement between CCA’s iconic Grinders business and global machine-capsule company Caffitaly to bring café quality coffee into thousands of Indonesian homes.

The partnership would bring CCA’s extensive sales and distribution network together with Caffitaly’s world-class coffee systems. It would be accompanied by a range of premium Grinders café-quality coffees, specifically designed for Indonesian taste.

The latest report from global market research firm Mintel, Coffee Global Annual Review 2017, showed that Indonesians are the world’s fastest growing consumers of packaged coffee — including instant coffee in sachet, ready-to-drink coffee and coffee in pod or capsule — in the past five years, the compound annual growth rate of packaged retail coffee in Indonesia rose 19.6 per cent from 2011 to 2016, topping a list that includes Turkey, India, Vietnam and Chile.

Watkins said that last year’s investor briefing had focused on the company’s Lead, Execute and Partner strategies for stronger category leadership, step changes in productivity and in-market execution, and better alignment with The Coca-Cola Company and other partners.

“These strategic themes remain unchanged. While the structural changes in our industry will continue, we know what we need to do, and as we said last year, there’s a lot in our business to be positive about,” said Watkins.

Currently CCAI operates eight preform production lines in two preform facilities, four Mega Distribution Centres and 38 production lines in eight manufacturing plants.

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