The day just got a lot gloomier for the snackers among us, as Indonesia will have to go without Cheetos, Lay’s and Doritos for about three years starting in August.
The three popular snacks are produced by and currently distributed in Indonesia by PepsiCo and local food giant PT Indofood CBP Sukses Makmur Tbk (ICBP) in a joint venture named PT Indofood Fritolay Makmur (IFL).
However, ICBP on Wednesday bought the entirety of PepsiCo’s 49 percent of shares in IFL, which was reportedly valued at IDR494 billion (US$35 million), ending 30 years of cooperation between the two firms.
ICBP Corporate Secretary Gideon A Putro said the transaction will effectively terminate the existing license agreement with PepsiCo, namely related to Cheetos, Lay’s, and Doritos, six months after the acquisition. A clause on the deal also states that PepsiCo can’t produce or distribute the three products for three years starting from August 2021.
“Fritolay, PepsiCo, and/or other affiliates may not produce, pack, sell, market, or distribute their snack products in Indonesia that compete with IFL products for three years since the end of the transitional period,” Gideon said in the statement.
PepsiCo will still produce and sell products unrelated to IFL, such as Quaker Oats. The US-based firm said in a separate statement that it hopes to return Cheetos, Doritos, and Lay’s to the Indonesian market when it can, without giving a specific timeline.
This isn’t the first time that PepsiCo pulled a major product out of Indonesia. Back in October 2019, Pepsi fizzed out of the country after PepsiCo and the drink’s Indonesian distributor Anugerah Indofood Barokah Makmur agreed to terminate their distribution agreement.