May 1, 2017 4:00 am JST

Japan's Pokka starts making soft drinks in Indonesia

Tea purveyor aims to cut costs, penetrate further into market

TOKYO -- Pokka Sapporo Food & Beverage is ramping up Indonesian operations in soft drinks, switching to local production to strengthen its market foothold and save on costs.

The Japanese beverage maker set up a production facility through a joint venture with local distributor Dima Indonesia and began shipments in late April. Pokka aims to sell 1.4 million cases in the first year.

Since predecessor Pokka Corp. set up shop in Southeast Asia back in 1977, Pokka has become well-known in the region for its green tea, mainly in Singapore. The company has also shipped drinks produced in Singapore to Indonesia for sale.

The first products coming out of the Indonesian plant include bottled jasmine green tea and lemon black tea. Pokka's drinks are a little pricier than rival brands, costing the equivalent of 40 yen to 70 yen (36 cents to 63 cents) more per bottle. The company plans to use sales channels of Dima and expand sales through supermarkets and other volume retailers.

(Nikkei)

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