After a three-year absence, PepsiCo has officially returned to Indonesia with an investment of US$200 million over 10 years to build a snack factory in Cikarang, West Java. This move is not just another business expansion, but a statement that they are ready to reclaim lost market share. With iconic brands such as Lay's, Cheetos, and Doritos to be produced in Indonesia, the question is: will PepsiCo be able to win the now much tougher competition?
In 2021, PepsiCo and FritoLay ended their long-term partnership with PT Indofood CBP Sukses Makmur Tbk (ICBP), which had manufactured and distributed their products in Indonesia for more than 30 years through a joint venture, Indofood FritoLay. As a result, the production and distribution of FritoLay products in Indonesia was halted. However, Indofood immediately responded by launching essentially identical products but under new brands such as Chitato Lite, Chiki Twist, and Maxicorn.
For Indonesian consumers, the change was relatively seamless. Indofood's replacement products maintained similar flavors and textures, while their extensive distribution network ensured product availability was maintained throughout Indonesia. In other words, consumer loyalty to the snacks remains, only now under a different brand.
Gabrielle Angriani Johny, director of government relations and corporate communications at PepsiCo Indonesia said on LinkedIn, "We are proud to have opened our first factory in Indonesia and officially started production of Cheetos at our Cikarang factory since January 2025. Now, Cheetos is back, made with pride in Indonesia!"
Branding and marketing strategies: Winning back consumers
PepsiCo's return to Indonesia presents a major branding and marketing challenge. In the past three years, Indofood has established its brand as the leader in the snack segment that was previously dominated by PepsiCo. As such, PepsiCo will need to have a solid strategy to win back consumers' attention.
Capitalize on global brand appeal
Lay's, Cheetos and Doritos are global brands that have very strong recognition. PepsiCo can use this appeal in their marketing campaigns, emphasizing that the original products are back. This strategy can create a sense of nostalgia while emphasizing that they offer more authentic quality and taste.
Product differentiation and innovation
While Indofood has managed to maintain market share with similar products, PepsiCo has an advantage in terms of product innovation. With their global experience, PepsiCo can introduce new flavors that are more suited to the tastes of Indonesian consumers. For example, they could launch Lay's or Cheetos variants with Indonesian flavors such as rendang or sambal matah to attract market attention.
Competitive distribution strategy
Indofood has the advantage of a wide distribution network, from minimarkets to traditional markets. PepsiCo must ensure that their products can reach consumers in the same way. Partnerships with local distributors and penetration into e-commerce could be key to making their products easily available to consumers. In her LinkedIn post, Gabrielle said that PepsiCo products can be found in the Alfamart retail network throughout Indonesia.
Digital campaigns and influencer marketing
With the changing marketing landscape, PepsiCo needs to adopt an aggressive digital strategy. Social media campaigns with local influencers, viral challenges on TikTok, and ads that rely on nostalgia can be effective tools to rebuild relationships with consumers.
Competitive landscape: The big duel with Indofood
Today, Indofood dominates the snack food market in Indonesia. With brands such as Chitato, Qtela, and Jetz, they have created a strong product ecosystem and have loyal fans. However, with the re-emergence of PepsiCo, several competitive scenarios could occur:
Price wars and promotions
To regain market share, PepsiCo will probably implement an aggressive pricing strategy, offering discounts or bundling promotions. Indofood, with more stable profit margins and established local production, could respond with similar tactics.
Competition in the retail space
Securing display space in retail stores is an important factor. Indofood already has an advantage in this regard, but PepsiCo can use their global resources to pressure retailers to give more exposure to their products.
Impact on consumers
Indonesian consumers will benefit from this increased competition. Not only do they have more choices, but they can also enjoy products with better quality and more competitive prices.
Sustainability as a differentiation factor
One of PepsiCo's interesting strategies is their commitment to sustainability. The new plant in Cikarang will use electricity from renewable energy as well as a water recycling system to reduce industrial waste. They also plan to use local raw materials such as potatoes and corn from Indonesian farmers.
This differentiation can be a selling point for consumers who are increasingly aware of environmental issues. A marketing campaign that highlights these sustainability aspects could give PepsiCo a competitive advantage, especially in the urban and millennial consumer segments that are more concerned with responsible business practices.
Who will win?
PepsiCo's return to Indonesia is not just about bringing back their products, but also creating a new dynamic in the snack market. Indofood has built a strong foundation with their rebranded products, while PepsiCo comes with global brand power, innovation and massive resources.
For branding and marketing professionals, this situation is an interesting case study on market re-entry strategies, brand competition, and how product and marketing differentiation can determine the success of a company.
Can PepsiCo win back the hearts of Indonesian consumers, or will Indofood remain the market king? This rivalry will be one of the most interesting to follow in the coming years.
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