Local Brewery Projects Sales Decline on Minimarket Ban
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Senin, 20 April 2015 15:34 WIB
TEMPO.CO, Jakarta – Beverage manufacturers are estimating some 60 percent decline in sales due to the liquor sales ban in minimarkets and retailers, which took effect on April 16.
Ronny Titiheruw, president director of PT Delta Djakarta Tbk (DLTA), said the decline is already noticeable in the last three months since the ban was socialized to minimarkets and retailers.
"Our sales will be corrected 60 percent, both in volume and value," he told Tempo yesterday.
Delta Jakarta is an alcoholic beverage manufacturer that sells several beer brands including Anker, San Miguel, Carlsberg, and Kuda Putih.
As the volume and value of sales are down, profits are expected to decline as well this year. If this situation continues, the company will cut expenses to maintain business continuity.
Ronny said the company is currently formulating a strategy to anticipate the ban so it would not lose money and fire its employees. "It's a tough situation for us," he said.
Ronny said the company and other alcoholic beverage manufacturers are seeking a dialogue with the Trade Minister about the particulars of the ban.
In addition to DLTA, other breweries listed in the Indonesia Stock Exchange (IDX) include PT Multi Bintang Indonesia Tbk (MLBI), the subsidiary id Netherland-based beer company Heineken.
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