Indonesia Business Report 2018

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Discovery Reports

Nippon Indosari to bite off bigger slice of Asia’s bread market

PUBLISHED : Tuesday, 03 July, 2018, 6:07pm
UPDATED : Thursday, 05 July, 2018, 11:35am

As a company that has provided superior yet affordable baked products to the Indonesian market for more than two decades now, Nippon Indosari Corpindo continues to raise its bread quality standards using Japanese technology and win consumer loyalty in Indonesia.

Renowned as the bread of Indonesia, Nippon Indosari offers delicious and high-quality breads, buns and cakes. The brainchild of visionary businesswoman Wendy Yap, the company was built on the flour production expertise of her father Piet Yap, who helped establish one of the world’s biggest flour mills.

“When my father consulted me about plans to open a bakery, I didn’t want to do another retail boutique bakery, which usually sells bread displayed openly,” says president and CEO Wendy Yap, honoured as one of the most powerful businesswomen in Asia by Forbes Asia, Forbes Indonesia and other top media entities. “I wanted to produce packaged bread that had the same quality and standards as those sold in Japan, yet adapted to local tastes.

“Our aim is to make quality bread affordable and easily available to everyone. In November last year, global investment firm KKR invested US$100 million in Nippon Indosari through a rights issue,” Wendy Yap says.

Nippon Indosari is venturing into the retail segment with Bake and Brew, its own chain of pastry and beverage outlets serving delectable yet affordable items. What makes Bake and Brew different is that its products are freshly baked on the premises. It inaugurated its first branch late last year and plans to open more outlets.

Nippon Indosari has received numerous awards and certifications, including the Hazard Analysis Critical Control Point award for all Sari Roti products. The company’s commitment to Indonesia has guided its decision to establish an impressive sales network spanning 67,000 points of sale. It has even organised a distribution system of about 2,000 mobile tricycles to reach rural areas.

To ensure product availability and meet increasing demand, Nippon Indosari operates 10 factories, which produce approximately 4.5 million pieces of bread daily. To further increase capacity, the company plans to build five new factories in the next few years.

In line with its internationalisation strategy, Nippon Indosari entered into a joint venture with Monde Nissin to set up a plant in the Philippines. It also acquired Philippine-based healthy bread company Walter Bread. This signifies Nippon Indosari’s venture into the sugar-free, fibre and multi-grain bread segment. Going forward, Nippon Indosari intends to expand in other parts of Asia with partners who have the right synergy and can add value to the business.