Lays, Doritos, and Cheetos are expected to cease production in Indonesia starting in August 2021.
The discontinuation of the much-loved snacks (Lays, Cheetos, Doritos) is due to the acquisition of PT Indofood CBP Sukses Makmur Tbk for PepsiCo, as an affiliate of Fritolay Netherlands Holding BV, which produces the three snacks in the country.
The business deal was completed on Wednesday 17th February. Under the terms, the transaction will concurrently terminate the license agreement with PepsiCo after PT Indofood Fritolay Makmur completes their preparations to cease the production and sale of all PepsiCo products.
“Fritolay, PepsiCo and/or other affiliated parties may not produce, package, sell, market, or distribute any snack products in Indonesia that competes with IFL products for three years from the end of the transition period,” said Indofood CBP Corporate Secretary Gideon A. Putro in his official statement submitted to the Indonesia Stock Exchange (IDX), quoted on Thursday 18th February.
Even though the contract is ending, it may not be the end of PepsiCo’s popular snacks in Indonesia. The return of Lays, Doritos, and Cheetos may be possible before the three-year non-compete clause is over.
“We see that Indonesia has a strong prospect for the snack industry,” explained the official statement from PepsiCo. This is an indication that PepsiCo will return to the Indonesian market as soon as possible.
“We hope to return to the Indonesian market again with our products to create more smiles with every sip and every bite,” he concluded.
Photo credits Flickr