The consumer Business Division was formed in late 1996 as
a strategic business unit of Japfa. The intention is for this
Division to act as a strategic change agent to initiate and
create the necessary evolutionary momentum to achieve Japfa’s
vision of becoming a mainstream food company.
Accordingly, the aim of the
Division is to assemble and build the critical organizational
capabilities and culture of a consumer branded food business.
Its mission is to apply this capability to intensify the downstream
value adding activities to Japfa’s core products.
The Consumer Business Division’s
product portfolio today includes processed meat products,
confectionary, beverage, value added meat and dairy products.
To consolidate its fledging product portfolio, there are plans
to expand the business scope to related supplementary products
areas over the medium term.
Although only established
recently, the Division has already acquired some traditional
regional household brands including ‘Hollanda’
for biscuit products, ‘Miami’ for confectionary
products and ‘Fresh’ & ‘Orson’
for beverage products. To complement these established brands,
it is also developing a distribution network for some new
brands including ‘So Good’ for value added meat
products and ‘Greenfields and Yahuii’ for dairy
products.
With 7 manufacturing sites located close to major population
centers, the Divison markets and sells it products through
its own distribution network of 4 regional sales branches,
servicing directly or indirectly some 250,000 retail customers
spread across 25 primary and 117 secondary cities within the
archipelago of Indonesia. In addition it has exported to over
30 countries.
To effectively supplement
its distribution and sales penetration through traditional
distribution channel, the Division has recently invested in
the development of an innovative end-user-direct distribution
channel in Indonesia. This enables the Division to effectively
market its products directly to consumers within large population
catchment areas in and around the primary cities of the Java
island. This development is driven primarily by the need for
a shorter distribution channel for the efficient marketing
of frozen and chilled products (value added processed meat
products) and fresh or short shelf life products (bakery goods
and dairy products).
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