Global food and beverage giant PepsiCo is exiting the Indonesian snack market after more than 30 years following the sale of its stake in joint venture company Indofood Fritolay, Food Business Africa reported on 21 February.

PepsiCo’s 49% share in PT Indofood Fritolay Makmur (IFL) had been acquired for about US$35.13M by Indofood CBP Sukses Makmur, with Indofood now owning 99.99% shares in the company, Food Business Africa said.

Established in 1990 by PepsiCo and Indofood CBP, the joint venture produced and distributed Frito-Lay snacks in Indonesia.

Under the terms of the agreement, IFL would stop the production and sale of the PepsiCo savoury snack products Cheetos, Lay’s and Doritos, Food Business Africa wrote, and PepsiCo would not market competing products in the country.

“Fritolay, PepsiCo and/or its other affiliates may not manufacture, package, sell, market or distribute any competing snack food products in Indonesia for three years from the expiry of the transition period,” the Indofood CBP statement said.

The move followed PepsiCo’s departure from its snack business in the Philippines, Food Business Africa said, with the company choosing instead to export snack brands such as Cheetos, Lay’s, Doritos, and Sunchips from overseas.