From Indonesia with love: Mayora’s Torabika toasting cappuccino success in Russia

03-Apr-2019 - Last updated on 03-Apr-2019 at 01:48 GMT

Indonesian beverage and snacks company Mayora has scored a hit in Russia with its Torabika-branded cappuccino. ©Pixabay

Related tags Indonesia Coffee Russia

Indonesian beverage and snacks company Mayora has scored a hit in Russia with its Torabika-branded cappuccino, achieving such success that a coffee factory may soon be established in the European country.

Mayora is well-known for not only its Torabika branded coffee, but also its Kopiko line which includes coffee candy and instant coffee.

Kopiko coffee candy gained global recognition in 2017 when a photograph revealed that International Space Station astronauts had taken the candy to outer space.

Mayora International Group Country Head Hartono Gunawan said: “[Mayora] sees Russia as a very important mixed-coffee market.”

Mayora exported 1,000 containers of Torabika Cappuccino to Russia in 2018, a 30% increase from 2017, according to Jakarta Post.

“We plan to export 2,000 containers of food products worth around US$40 million to Russia this year, especially as there will be a new biscuit product and a new variant of instant coffee to be exported,” said Mayora President Director Andre Sukendra Atmadja during a press conference.

“It is very likely we will build a factory in Russia, but we need to reach a certain economy of scale first.

“Although we have sent 1,000 containers, it is still too small to warrant a factory. Only once the economy of scale reaches $100 million would it be feasible to build a factory there.”

The prospect of a Russia-based factory has been received with enthusiasm by both Russia and Indonesia.

Indonesian Minister of Trade Enggartiasto Lukita told IDN Financials that the proposal of a factory in and of itself suggested that ‘the relations between Indonesia and Russia were not only political and bilateral but also economic’.

He added that Indonesia was looking to be recognised worldwide for not just palm oil or mining exports, but also for value-added, processed exports such as in processed food and beverage products.

Russian Ambassador to Indonesia Georgievna Vorobieva concurred, adding that: “[Such a] factory will give Mayora a good opportunity to reach the Russian and Eurasian markets.”

Mayora currently has 24 local production facilities in Indonesia, and five factories abroad.

Future growth

Mayora Indah Global Marketing Director Ricky Afrianto revealed that the company wasexpecting at least 15% of sales growth this year.

“We offer affordable products that are needed by people of all backgrounds. The political climate will hopefully not disrupt the FMCG industry,” he added.

In a separate statement to local media, he said that Mayora is investing some US$75mn to boost its export business further, with the Philippines as a major target.

“[Mayora] still hopes that government negotiations with the Philippines to eliminate special safeguards (SSG) against instant coffee from Indonesia, will be positive. If negotiations are not successful, MYOR will establish a packaged coffee factory in the Philippines to avoid the SSG,” said Afrianto.

Mayora’s products marketed in the Philippines that he claimed to be affected by SSG include Blana Coffee, Kopiko Brown and Astig. The company has a 45% market share in the country.

He added that the company was also targeting Southeast Europe in 2019, and had also begun exports to 10 Commonwealth of Independent States (CIS) countries.