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The Last Days of the Pepsi Generation

Pepsi-Cola Ceases Production and Sale in Indonesia October 10, 2019

Pepsi-Cola will cease to be produced, distributed or sold in Indonesia effective October 10, 2019.

First produced in the USA in 1903, based on a formula created by pharmacist Caleb Bradham,  Pepsi-Cola Products were manufactured and distributed under license by PT Indofood Asahi Sukses Beverage – a division of the massive Indofood Group.

The end of “The Pepsi Generation” in Indonesia and the elimination nationally of one of Coca-Cola’s main competitors was announced by a spokesman for PepsiCo on Wednesday, October 2, 2019, who confirmed the mutual agreement between PepsiCo and Indofood to end the soft drink maker’s presence in the Indonesian market.

As reported by Suarasurabaya.net, Thomas Darmawan, a director of the Association of Indonesian Food and Beverage Makers (GAPMMI), blames the disappearance of Pepsi-Cola in Indonesia on the strict regulations now being imposed by the Government of Indonesia on beverage manufacturers.

Darmawan specifically cited four regulations that had the potential of influencing Pepsi-Cola’s decision not to extend its contract with PT Anugerah Indofood Barokah Makmur (AIBM) beyond October 10, 2019. “There are four regulations that are included in the current consideration of beverage industries, namely: regulations on water resources; labeling rules from the Agency for Supervision of Food and Medicine (POM); requirements on 'halal' certification; and rules prohibiting plastic packaging for beverages,” said Darmawan quoted by the State News Agency Antara on October 3, 2019.

Darmawan also said POM Regulation Number 22 of 2019 on labeling, including the requirement to note nutritional information, was also proving problematic for beverage industry players. That regulation requires the notation of amounts of salt (sodium), sugar, and fat (GGL) on all food and beverage packaging.

Effective October 27, 2019, food and beverage manufacturers in Indonesia are required to notate their “halal certification” issued by a private sector religious body – Majelis Ulama Indonesia.

Also causing concern for soft drink manufacturers in Indonesia are proposals to impose an excise tax, similar to that imposed on cigarettes in Indonesia, on carbonated beverages.

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