Hendrik Setiawan is proud of his new factory in Tangerang, just opened last June. At 3,000 sqm, it is 10 times bigger than the previous facility he had in south Jakarta, which is now a logistics office. It is a symbol of what Hendrik has achieved and what kind of the growth he expects.
He started selling Mama Roz in 2005 and now his bottled fresh juice is sold in three major cities—Bandung, Jakarta and Surabaya and in over 100 stores in such prominent chains as Ranch Market, Sogo and Hypermarts. Rising incomes means people tend to shift towards healthier and more convenient products such as bottled juice.
The fruit juice industry growth over the last three years is around 17% a year with an estimated market size of over Rp 500 billion, according to the Association of Soft Drink Manufacturers. There’s plenty of upside given that the juice market is only 5% of the total soft drink industry. The competition is already fierce, however, with products from Unilever’s Buavita and Orang Tua representing 45% of the market in 2012 according to Euromonitor.
Hendrik choose to aim at a niche: fruit juice made from fresh fruit without additives or preservatives. It is more expensive than the other juices and has an expiry of just three days, unlike other juices that have preservatives and are pasteurized to extend shelf life. They also usually use fruit concentrate instead of fresh fruit. (Mama Roz juices are not, however, 100% juice, they can have added sugar and other ingredients.)
“The customer may not know about what is fruit concentrate, but once they try our product they can’t lie about its taste,” Hendrik says. Due to the commitment to freshness and quality, Mama Roz juices are also more expensive, at around Rp 22,000 for 600 ml, usually the most expensive juice on the shelf.
“We started small with ten employees. We did make some brochures and do some advertising, but mostly we relied on word of mouth marketing,” Hendrik says, adding that the initial capital was Rp 100 million. At first, Hendrik sold Mama Roz only through direct delivery, mainly to office workers, with a promise to deliver the juice to their office before noon. (The Mama Roz brandname and character on his bottles is fictional, something Hendrick created to promote a wholesome image for his product.)
After only three months Hendrik started retail sales, usually in upscale supermarkets such as Ranch Market. “The product is unique and we checked their standards. The other brand offering a fresh juice is Berri Juice, where the juice is made in front of buyers and bottled. However it only offers orange juice, while Mama Roz has more varieties,” says Nandy Firmansyah, Ranch Market store manager at the Pacific Place shopping mall in Jakarta. Nandy says that his store places 4,000 bottles each week on their shelves, and it rarely is left unsold. Popular flavors include strawberry and guava.
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