Mayora’s Torabika toasting cappuccino success in Russia

3 April 2019
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.