Indonesia

Back in 1920s Japan, Dr. Minoru Shirota began culturing a bacterium that destroyed harmful bacteria found in the intestine. His work in the field of microorganisms led to the development of Yakult, the fermented milk drink which has become the leading health drink in Indonesia.

It was not until the mid-1980s that health drinks began to enter the Indonesian market. The sale of such drinks increased in line with economic welfare and through education and promotion. Since then, Yakult has gained a remarkable 90 percent share of the skimmed-milk-based health drink market.

As Sutianto, president director of Yakult Indonesia Persada, says "The main reason why the drink has become so popular is because the taste of this product suits the market here. The product contains a bacterium called live lactobacillus casei Shirota strain, which benefits the digestive system."
Yakult Indonesia President Director Sutianto

The rise in Indonesia's middle class has brought about a stronger demand for goods and services which are seen as relative luxuries. Through Yakult Indonesia's strong distribution network and effective marketing campaigns, the company now has 10 distribution branches throughout the country, which allow it to deliver products to retail outlets without sacrificing quality. There are plans to open eight more centers in 2003.

"Yakult has been operating in Indonesia since 1990," says Sutianto. "Initially, our first factory covered an area of 4,200 square meters, but by 1996 we had reached full capacity. Now our factory covers an area of 50,000 square meters and can produce 1.7 million bottles per day."

"I want the Yakult brand to become even stronger in Indonesia. I have been here from day one. When we began, nobody knew our product. Now we intend to further develop our distribution system and intensify our market here. I think by doing this, our product will be available everywhere in Indonesia. There is great potential in this country and I am very positive about the future."

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