MANILA, Philippines – The country’s largest homegrown food conglomerate, Jollibee Foods Corp., is pursuing its plan to expand its flagship brand Jollibee to Indonesia this 2013 as it learns lessons from its ongoing global expansion.
At the sidelines of the APEC SME Summit on Sunday, January 20, Jollibee President and CEO Tony Tan Caktiong shared to reporters that, while the food group has set to expand to markets with large population in Asia, like Indonesia and India, some challenges beyond its control have to be taken into account.
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There is “more acceptance” to their products in Indonesia, unlike in India where it has not yet been able to obtain access to the market.
India is currently the second most populated country in the world and one of the biggest economies in Asia. Limiting foreign stake in retail and other industries was one of the key issues in 2012 raised by foreign investors eyeing India.
Caktiong said that currently the company is adjusting some of its offerings to suit the Indonesian palate. Caktiong has previously noted that Jollibee will be looking at the local market as there are no large Filipino communities in Indonesia.
Caktiong had said the Indonesian taste is geared towards more spicy “so there will be some adjustments” in the menu.
He shared that the company is now increasing its take up of Halal products as well as its creation of more spicy sauces and other offerings.
Another brand under the group, Chowking, is already operating in Indonesia, but Jollibee has yet to follow suit. This expansion is in line with the company’s goal of generating half of its sales and revenues from operations abroad in 2017.
He added that all these adjustments and 300 new store expansions this year which will be financed through its P5.5 billion-worth capital expenditure allotment in 2013. This is higher than the P4 billion the company spent in 2012.
The company is also confident that it was able to book at least a 10% growth in sales and net income in 2012 and will be able to sustain this growth this year.
When asked how business was in 2012, he replied, “It was good, the domestic market was very good. Growth would be better than in 2011.
Caktiong said 2013 being an election year would mean business will be brisk for Jollibee and its other brands.
“We are very optimistic for 2013 because of the elections. There’s bigger spending. – Rappler.com
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