Suntory Beverage & Food has announced its decision to exit the nonalcoholic drink business in Indonesia, opting to sell its substantial 75% stake in the joint venture, Suntory Garuda Beverage, to its partner Garudafood. The agreement, involving an undisclosed amount, is expected to be finalized in the first half of 2024. According to the company, this strategic move will have only minor impacts on its consolidated earnings.
This divestment is part of Suntory Beverage’s ongoing portfolio review. In shifting its business focus, the company aims to concentrate more on the health enrichment category within the Indonesian market. Suntory Garuda Beverage, a collaboration formed in 2011 between Suntory Beverage and the Garudafood group, marked Suntory’s foray into Indonesia’s soft drink sector. In 2022, the venture reported revenue of around $70 million, primarily from producing and selling tea and jelly drinks.
The decision to withdraw from this segment reflects Suntory Beverage’s evolving business strategy and focus on health-centric products. This shift signifies a realignment of priorities in response to market trends and consumer preferences, positioning the company to better cater to the evolving demands of the Indonesian market.
