Indonesia: Unilever to divest tea business for $89 million

Unilever Indonesia, the local arm of the British consumer goods giant, has reached an agreement to sell its tea business to PT Savoria Kreasi Rasa, a subsidiary of the Indonesian conglomerate Djarum Group.

The deal, valued at 1.5 trillion IDR ($89.4 million), includes the divestment of the SariWangi brand, which Unilever originally acquired in 1989. SariWangi is a leading brand in the country’s tea-bag segment and is credited with popularising the format across the nation. Despite its prominent market position, the tea business represents a relatively small portion of the company’s local operations, accounting for approximately 2.7% of total revenue and 3.1% of net profit.

The sale is part of a broader strategy to streamline the firm’s portfolio to focus on fewer, larger and more scalable categories. It follows the global disposal of the majority of its tea business, Ekaterra, which was sold to CVC Capital Partners in 2021.

Benjie Yap, president director of Unilever Indonesia, stated: “We are confident that this transaction will position the tea business for its next phase of growth, while sharpening Unilever Indonesia’s focus on priority, higher growth segments and reinforcing our commitment to sustainable shareholder value”.

The transaction is expected to be completed in the first half of 2026, subject to customary closing conditions.

Source: Marketech APAC / FoodBev / Deal Street Asia