Publicly listed PT Multi Bintang Indonesia (Bintang) has secured the license to produce and sell beer from Singapore-owned brand Tiger Beer in Indonesia. This agreement was concluded between Bintang and Singapore’s Heineken Asia Pacific Pte Ltd. Both companies are operating under Heineken NV, and the latest transaction will allow Bintang to boost its net revenue and profit.
Bintang forecast that the introduction of Tiger Beer into its Indonesian product lineup will help it to generate Rp 61.9 billion (US$4.1 million) worth of additional net sales in 2024.
Bintang has earned the rights to use the Tiger Beer trademark until 2028, and Heineken Asia Pacific is entitled to incremental commission (from 0- 5%) of the product’s sales per year.
The alcoholic beverage industry was hit the hardest in Indonesia during the pandemic with sales plummeting by more than 30% in 2020.
Beer players in Indonesia are expecting a rebound in 2023 with the rising number of tourists and introduction of new products. This, however, will still be below the pre-pandemic level as Indonesia has also one of the lowest per capita consumption of alcoholic drinks in the world.