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Soft Drinks Industry

In Indonesia, soft drinks are readily available in various public places from roadside stalls (warungs) to small shops. They are widely consumed by all levels os society, education and work groups.
Studies by an independent research institution (LPEM of the University of Indonesia) and marketing research agency DEKA have shown:

  • In 1999, 85% of monthly soft drink consumers had an average household income of less than Rp 1 million (US$ 100) per month. Of these 46% was less than Rp 500,00 (US$ 50)


  • Seventy-two percent of weekly consumers had an average household income of less than Rp. 1 million per month. Of these over 40% are either students, partially employed people or pensioners.


  • Amongst weekly consumers, soft drinks are consumed as often as syrup and snack foods and far more than ice cream.
  • With the wide consumption of soft drinks, the industry offers an enormous yet untapped potential with its low per capita consumption and the large young population.

    Today, the country has one of the lowest rates of consumption of Coca-Cola company products (only 13 8oz-servings per person per year), compared to Malaysia (33), Philippines (122) and Singapore (141).

    Because soft drinks sales are sensitive to price, every effort has been made to maintain affordability. In 1997 you could buy 11 small bottles of carbonated soft drinks or ready-to-drink tea with the daily minimum wage in Jakarta and 13 in 2001. However, you could buy 205 candies with the same minimum wage in 1997 and only 136 in 2001.

    In terms of job creation opportunity, the soft drink industry has a high employment multiplier. At 4.025 times, it ranks 14th against the other 66 industry sectors in the country. This means that for every one job created, or lost, in the soft drink industry then four will be created, or lost, at the national level.

     
    For every one job created in the soft drink industry, four will be created at the national level

    Eighty percent  of  soft drink  sales  are  made  through retailers and wholesalers, of which 90% are considered small-scale  businesses. For  these  small-scale businesses, soft drink products are their most important merchandise - contributing 35% of total sales and generating 34% of profit.

    Other supporting industries affected by the activity in the soft drink industry include glass, bottle closures, transport and media.

    80% of soft drink sales are made through retailers and wholesalers.


     
     
     
     
     
     
     
     
     
     
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