Fruit Beverage Industry Trend

1. Development and Challenges in the Fruit Beverage Industries Farchad Poeradisastra Chair of ASRIM (The Association of Indonesian Soft drink Manufacturers) Practitioner experience in running and developing entrepreneurship in the fruit beverage industry, as well as challenges faced and the problem-solving efforts

2. History of Fruit juice Industry in indonesia In Indonesia, fruit juice industry starting in early of 1960-ies. Mostly small medium entreprises. Starting with CV Karya Kita, passionfruit juice processor with brand BintangDunia and Bola Dunia in 1962, in Makassar, South Sulawesi. This company still exist in the second generation, Mr. Philip RumondorKarundeng. He develop the business from his father. In 1965 he founding fruit juice processor association, APSARI. In Large scale juice business, in early eighties, there is three company running chilled juices, such as Sunfresh, Sunripe and Diamond. For kids juice there is Caprisonne, ABC and Buavita with 250 ml size pack. Mostly their main market is modern market (retail outlet), except Sunfreshmore focus in Horeca market (Hotel-Restaurant-Catering and Cafe. Sunfresh Juice Industry CV KARYA KITA

3. Fruit Juice = High Nutrition Content, Healthy in Body, and Fresh in Mind

4. Fruit Juice Fruit juice is the unfermented but fermentable liquid obtained from the edible part of sound, appropriately mature and fresh fruit or of fruit maintained in sound condition by suitable means including post harvest surface treatments applied in accordance with the applicable provisions of the Codex Alimentarius Commission. Some juices may be processed with pips, seeds and peel, which are not usually incorporated in the juice, but some parts or components of pips, seeds and peel, which cannot be removed by Good Manufacturing Practices (GMP) will be acceptable. The juice is prepared by suitable processes, which maintain the essential physical, chemical, organoleptical and nutritional characteristics of the juices of the fruit from which it comes. The juice may be cloudy or clear and may have restored1 aromatic substances and volatile flavour components, all of which must be obtained by suitable physical means, and all of which must be recovered from the same kind of fruit. Pulp and cells2 obtained by suitable physical means from the same kind of fruit may be added. A single juice is obtained from one kind of fruit. A mixed juice is obtained by blending two or more juices or juices and purées, from different kinds of fruit.

5. How to Make a Juice? Fruit juice directly expressed by mechanical extraction processes. Fruit juice from concentrate by reconstituting concentrated fruit juice defined in Section 2.1.2 with potable water that meets the criteria described in Section 3.1.1(c).

6. 2.1.2 Concentrated Fruit Juice Concentrated fruit juice is the product that complies with the definition given in Section 2.1.1 above, except water has been physically removed in an amount sufficient to increase the Brix level to a value at least 50% greater than the Brix value established for reconstituted juice from the same fruit, as indicated in the Annex. In the production of juice that is to be concentrated, suitable processes are used and may be combined with simultaneous diffusion of the pulp cells or fruit pulp by water, provided that the water extracted soluble fruit solids are added in-line to the primary juice, before the concentration procedure. Fruit juice concentrates may have restored1 aromatic substances and volatile flavour components, all of which must be obtained by suitable physical means, and all of which must be recovered from the same kind of fruit. Pulp and cells² obtained by suitable physical means from the same kind of fruit may be added.

7. 2.1.3 Water Extracted Fruit Juice Water Extracted Fruit Juice is the product obtained by diffusion with water of: - Pulpy whole fruit whose juice cannot be extracted by any physical means, or - Dehydrated whole fruit. Such products may be concentrated and reconstituted. The solids content of the finished product shall meet the minimum Brix level for reconstituted juice specified in the Annex.

8. 2.1.3 Water Extracted Fruit Juice Water Extracted Fruit Juice is the product obtained by diffusion with water of: Pulpy whole fruit whose juice cannot be extracted by any physical means, or Dehydrated whole fruit. Such products may be concentrated and reconstituted. The solids content of the finished product shall meet the minimum Brix level for reconstituted juice specified in the Annex.

9. ASRIM – THE ASSOCIATION OF INDONESIAN SOFT DRINK MANUFACTURERS Soft Drinks Beverages Non Alcohol is, both carbonated and non carbonated. Soft drinks (soft drinks) is a beverage prepared in powder or liquid containing food material and / or other additional materials whether natural or synthetic that is packed in containers ready for consumption. Classification of Soft Drinks consist of: Juice drinks Carbonated Drinks Drinks Bottled Drinking Water (drinking water) Ready to Drink Tea Beverage Coffee & Milk Ready to Drink Isotonic Drinks/Energy/Supplements

11. Cocacola, Fanta, Sprite

12. Pepsi Cola, Shandy

13. RC Cola

14. Big Cola

15. 100 Plus

16. others

17. Fruit Juice

18. Buavita

19. Country Choice

20. Heinz ABC

21. Minute Maid

22. Berri

23. Diamond & Jungle

24. Love Juice

25. Sunkist

26. Sunfresh

27. Sunripe + Sunrise

29. MIZONE

30. VITAZONE

31. POCARI SWEAT

32. FATIGON HIDRO

34. PRIM-A

35. PURE LIFE

36. EQUIL

37. OASIS

38. ADES

39. PURENCE

40. O2

42. Soft drink growth trend in indonesia Health and nutrition in Indonesia, the current soft drinks in terms of volume is dominated by drink bottled drinking water which reaches 84% market share of total fast food market. Carbonated Soft Drinks tend to stagnate, either because of the many other beverage options, as well as rumors overwritten health problems. Until now, carbonated beverages have a market share of 3.6%. While the significant growth of other beverages outside of Bottled Drinking Water is: Isotonic Drinks, Fruit Juice Drinks and other beverages flavored fruit. If the 2010 is still the same volume with carbonated beverages, in 2011 and beyond in market share would go beyond it. Soft Drink Tea still has a very strong market share of 8.9% in 2010. While the trend is still very strong for the developing world, let alone come drink tea with various variants such as carbonated tea, tea contain fruit juice, and other antioxidants, such as Tebs, Fruitea, Frestea, Nu Tea, Tea Chrystinum ABC, Fruit Flavor “TehKotak” (Tea Box), Pokka Green Tea, TehGelas (Tea Glasses), Tea Flower etc.

43. Attitudes to Food Safety and Environment(% Strongly/completely agreeing with each statement)

44. Health-related Attitudes to Food & Beverages(% Agreeing with each statement)

45. Trend PertumbuhanMinumanRingan Asumsi tingkat pertumbuhan minimal tanpa mempertimbangkan tingkat inovasi baik dalam jenis, kemasan, merek maupun harga. Sumber Euromonitor diolah oleh ASRIM.

46. What indonesia is drinking share of throat Almost 38% are hot beverages, such as Hot Tea, Hot Coffee, and Hot Chocolate, Tea Drinks iced 12% and 50% were ready to eat packaged beverages. Unfortunately this analysis does not take into account drinking water (either in containers or the results of the household), which is very large (more than 80%) as illustrated in the right graph.

47. Of the 240 million population of Indonesia at this time, the level of consumption of soft drinks we are the lowest, compared to other Asean countries whose population is far below us. Carbonated drink 33 liters per capita, 53 liters of drinking water per capita, and other beverages even lower. Opportunities are still open for the beverage industry because of the low per capita consumption of soft drinks in Indonesia. Whereas in Thailand currently has 89 liters per capita, In Singapore 141 liters per capita, In the Philippines 122 liters per capita. In 2015 we set a target of 100 liters per capita to rata2 soft drinks. Or in other words, if the growth of Indonesia's population in 2015 has reached 250 million people more, then the target of industrial producers is the consumption of soft drinks per year that can be marketed as much as 25,250 million liters. But the biggest opportunity for growth in soft drinks (ready to eat) in Untapped Market is the total population of Adolescent and Young Children are great. The population of adolescents and young child is a productive population and potentially have an increased level of disposible income. Beverage consumption level

48. Opportunity As an agrarian country on the equator, Indonesia is rich in tropical fruits that have a selling value in the global market. Indonesia ready to compete with other tropical countries that are now highly developed, such as India, Thailand, Malaysia, Philippines and Vietnam? How is Government policy to encourage fruit processing industry in Indonesia? What is the role the business community and what obstacles / challenges facing the fruit processing industry of global climate change?

50. JambuBiji (Guava)

51. Mangga (Mango)

52. Markisa (Passionfruit)

53. Pisang (Pisang)

54. Rambutan (Rambutan)

55. Jeruk (Tangerine)

56. Kakao (Cocoa)

57. Kelapa (Coconut)

58. Pepaya (Papaya)

59. Sirsak (Soursop)

60. Delima (Pomegranate)

61. Nangka (Jackfruit)

62. Lengkeng (Longan)

63. Leci (Lychee)

64. TerongBelanda (Tamarillo)

65. Manggis (Mangosteen)

66. Mengkudu (Noni -Morindacitrifolia)

67. AsamJawa (Tamarind)Yard Tree Plantation Tree

68. Tropical exotic fruits

69. Exotic fruits Pineapple, Passionfruit, Mango, Banana, Pomegranate, Soursop,

72. TipeDipersal The pattern of relationships between the actors and business one another do not have formal ties strong. No association characterized the functional organization among all levels of agriculture upstream and downstream. Agribusiness network is only bound to the market mechanism, while the perpetrators are between indirect and impersonal. So every actor agribusiness thinking only their own interests

73. HAMBATAN USAHA KECIL INDUSTRI PENGOLAHAN BUAH Pulper Pasteurisasi Filler

75. Not to apply GMP & HACCP

76. Limited Capital, Heavy Manwork

77. Less Law Protection

79. Domestic and Global

80. Mastering the Legal Aspects of Business

81. Incorporated in similar Industry Association & Chamber of Trade & Commerce

82. Sophisticated Equipment & Modern Technology

83. Food Safety,

84. Application of GMP, HACCP, ISO 9001,

86. Synergic Type and mutual benefit This type of awareness based on mutual need and support each other on each side that partner. Basisnyanya is a step in the development and advancement of all parties. In order to strengthen the synergy of each party formed a governing agency cooperation, tasks, responsibilities and rights of each. Also in it arranged a mechanism of mutual protection and benefit of each party. Inviting the private sector to engage in the empowerment of SMEs is also another way. Often the private sector businesses have the means to empower SMEs. Able to make SMEs as business partners (not just the beneficiaries), for example, started through a collaboration with SMEs who support or have a business relationship. Of course, such cooperation should provide benefits and opportunities for SMEs and the big business players to further develop itself.

87. Factors to be challenges in the Development of Processing juice Industry Business climate conditions that have not supported such as: smuggling, legal certainty, a high cost economy, the tax system, customs system Security conditions are relatively stable, yet able to guarantee certainty is a big enough challenge for investment in the industrial sector. Competition among the nations in the world increasingly stringent Economic integration and regionalization of global economy that hit the world at this very affecting world economic order The existence of the world trade organization (WTO), trade and investment liberalization in APEC and the CEPT scheme in AFTA, ASEAN is increasingly dynamic movement of world trade and rapid

88. Fruit Potential mapping program Creation of Superior Clones Improved farming techniquesFacilities and Infrastructure Improvement Sorting fruit tailored to the needs of manufacturing industryProcurement and optimization of cooling unit Partnership program between the farmers with fruit-processing industry Development and application of product standards, GMP and ISO Improving human resources capabilities Program to improve the business climate fruit industry Fruit processing industry development program Improved market access through trade promotion Foreign Affairs Diversifying products and improving product quality in accordance with market demand Reduction of the domestic market distribution chain Provision of low interest venture capital for SMEs Programs that should be implementedGovernment and Businessin Integrated

89. RECOMMENDATION Indonesian horticultural sub-sector has a significant contribution to food security for this country. Production of fruits and vegetables showed an increasing trend; Post-harvest management systems for horticultural products in Indonesia is still not sufficient. Post-harvest facilities is still very limited, making the constraints on horticultural crops julep. This gives a consequence it takes a lot of equipment appropriate facilities for post-harvest handling. Post-harvest management is also needed by the trained capacity. The increased contribution of horticulture processing for national economic development will require infrastructure improvements, development of farmer groups and partnerships. Application of appropriate technology, increased awareness of food quality and food safety issues, improving access to credit and the application of GAP, GHP, GMP and HACCP. There is the right technology at the center of production as demanded by horticulture farmers also needed. Knowledge and expertise on post-harvest control must be developed. Investment and joint venture program on the processing of agro products and related matters is needed in order to stimulate the development of agro-processing in Indonesia. Foreign investment is lured by the current government policy.