PepsiCo Indonesia - Failure Case Study

PepsiCo Indonesia - Failure Case Study



On October 10, 2019, PepsiCo decided to exit the Indonesian soft drinks market, discontinuing its contract with AIBM. PepsiCo is one of the worlds major buyers of palm oil, which is used for the production of snack foods, especially in its Asian business centers where it is widely available, in addition to being cost-effective and shelf-stable. However, palm oil cultivations in these countries have come into disrepute for the rapid depletion of rainforests and peatlands, loss of animal habitat, and labor rights abuses. Accordingly, in Indonesia, PepsiCo halted direct and indirect sourcing of palm oil from January 2017 from a subsidiary of AIBM that had come under fire due to claims of deforestation and human rights abuses. This escalated the disharmony between the two companies, thereby paving the way for the end of the distribution agreement.

On October 10, 2019, PepsiCo decided to withdraw from the Indonesian market, terminating its contract with AIBM, a local distributor for PepsiCo products in the country. The move came soon after PepsiCo closed its snacks factory in the Philippines the month before.

Scope

- PepsiCo broke ties with its local partner, which was beset by claims of deforestation and human rights violations.
- Demand for sugary soft drinks is weakening in Indonesia.
- Stifling regulations as well as a sugar tax impeded PepsiCos growth in the local market.
- The looming threat of taxes and consumer disinclination towards consumption of sugary drinks drive the need for beverages with health benefits.

Reasons to Buy

- Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
- Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
- Access valuable strategic take-outs to help direct future decision-making and inform new product development.

What?
Why?
Take-Outs
Appendix

COVID-19 Impact on PepsiCo, H2 2020 Update

COVID-19 Impact on PepsiCo, H2 2020 Update COVID-19 Impact on PepsiCo, H2 2020 Update reports key findings as of October 1, 2020 based on market analysis and brand diversification by industry

USD 1450 View Report

PepsiCo Indonesia - Failure Case Study

PepsiCo Indonesia - Failure Case StudyOn October 10, 2019, PepsiCo decided to exit the Indonesian soft drinks market, discontinuing its contract with AIBM. PepsiCo is one of the worlds major

USD 995 View Report

Construction in Indonesia - Key Trends and Opportunities to 2025

Construction in Indonesia - Key Trends and Opportunities to 2025The Indonesian construction industrys output in 2020 declined by 2% in real terms due to the Large-Scale Social Restrictions policy imposed

USD 1495 View Report

Accessories in Indonesia - Sector Overview, Brand Shares, Market Size and Forecast to 2024 (adjusted for COVID-19 impact)

Accessories in Indonesia - Sector Overview, Brand Shares, Market Size and Forecast to 2024 (adjusted for COVID-19 impact)Accessories in Indonesia - Sector Overview, Brand Shares, Market Size and Forecast to

USD 550 View Report

Fill The Form For Sample Request

Note : * Kindly provide us with your company id and get the sample reports at the earliest.

There is no Reviews available