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#31936 - 01 Apr 06 10:37 APFOOD/Baked goods gaining popularity in Indonesia
biznews Moderator Offline
Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta

Baked goods gaining popularity in Indonesia

By Dominique Patton

30/03/2006 - Sales of crackers, c0okies and breakfast cereals are rising fast in Indonesia thanks to higher incomes and the large and growing population.

An influx of Western manufacturers in recent years with big investments into top brands has also helped drive double-digit growth.

New figures from Datamonitor show that breakfast cereals the smallest product in both volume and value terms in the overall baked goods sector - have seen compound annual growth (CAGR) of 7.2 per cent between 1999 and 2004.

From 1999-2009, this growth rate is expected to be around 3.4 per cent, compared with a mere 0.9% in the mature, and much bigger, UK market.

But crackers, or savoury biscuits, are seeing even faster growth, with a CAGR of 11.4 per cent during the five years to 2004. Sales of crackers reached IDR449.7bn (41m) in nominal prices that year, and they are forecast to see compound annual growth of 10.3 per cent to 2009, reaching IDR734 billion.

Many of the country's baked goods are still imported or made by foreign multinationals who see Indonesia as a springboard to other Asia Pacific markets such as China.

"Several Western companies stuck out the economic crisis in the late 90's and the rising spending power of Indonesians in recent years and successful investment in local brands and marketing has seen strong growth for many of these firms," Nick Beevors, associate analyst at Datamonitor, told

C00kies or sweet biscuits are also performing well in Indonesia. One manufacturer seeing tremendous growth is Australia-based Arnott's.

"Arnott's has been very successful in its investment in the Tim Tam biscuit brand," said Beevors.

The country's leading biscuit maker Khong guan has also benefited, increasing its market share to 11.5 per cent in 2004 from 11.4 the previous year, while Mayora, Danone and Kraft also edged up a percentage point.

Artisanal producers are losing share as a result, falling from 30.5 per cent of the market's value in 2003 to 30.3 per cent in 2004.

Beevors added that fears of economic downturn led to manufacturers promoting their products in more remote parts of Indonesia and helped them to expand their market.

New distribution methods such as Unilever selling bottled Lipton iced tea from motorcycle saddlebags in villages where the lanes are too narrow for cars have allowed them to reach new customers.

Western companies such as The Campbell's Soup Company (Arnott's) and Unilever have also moved manufacturing capabilities to Indonesia in recent years to produce the low-margin, high-volume goods locally.

"Imported share in morning goods and cakes and pastries is therefore likely to fall as producers follow the example of the biscuit and crackers manufacturers who largely produce their products in Indonesia," predicts Beevors.
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#31937 - 01 Apr 06 13:43 Re: APFOOD/Baked goods gaining popularity in Indonesia
Ena Offline

Registered: 26 Nov 05
Posts: 765
Loc: Sydney
we always bring weet bix for my father in law.He call it " arfemud" dont know the meaning, could be a hakka word.
Actually he can buy at supermarket in plaza indo, but he is one of those who believe they have repackaged inferior product just for him lol.

..take only what you need..

#31938 - 03 Apr 06 12:09 Re: APFOOD/Baked goods gaining popularity in Indonesia
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
weet bix can br bought at several places in jakarta, though they often disappear from the shelves for weeks at a time ("can't figure it out; people keep buying them"). and they are imported directly from oz ...
KuKuKaChu: dangerously too sophisticated


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