Soy sauce battle
Two big multinational food companies are now slugging it out in the Indonesian soy sauce market, according to a Wall Street Journal story ("In Indonesia, a Fight for Soy-Sauce Crown," 4/20/07).
The big contenders are Anglo-Dutch Unilever and US-based Heinz. Heinz bought a majority position in Indonesia's #1 soy sauce maker ABC in 1999. IN 2001, Unilever bought control of #2 Bango. Bango, according to the story, has been gaining market share, even as ABC is proving Heinz's most profitable business in Asia.
For multi-billion dollar companies, the dollar amounts are not high, a total of $182 million, with both companies having about a third of national market. But for both companies, the growing food market in the world's third largest country is a critical future investment in high-profit packaged foods. For Heinz in particular, ever bigger moves internationally is relatively new.
The battle is an extension of worldwide contests by multinationals that are constantly looking for a niche (by buying an established company) that will allow them to extend their brands beyond the mature US and European markets. As even China and India are getting crowded, these big companies are placing their bets everywhere they can. And as they do so, they are encountering familiar rivals.
9:45:15 PM 
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