Introduction of PT Cisarua Mountain Dairy
Founded in 1992, PT Cisarua Mountain Dairy Tbk, also known as Cimory, has become one of the Indonesia’s leading producer of premium dairy products, mainly active in Java, Bali, and other densely populated areas. Its product portfolio is grouped into two segments, Premium Dairy, including fresh and UHT milk, and various yogurt products.
The second category, Premium Consumer Foods, consists of a range of protein based ready-to-cook (RTC) and ready-to-eat (RTE) products, such as sausages and chicken nuggets, which are sold under the Kanzler brand.
In a pre-IPO interview, Founder Bambang Sutantio emphasized the critical importance of distribution networks in Indonesia due to the country's weak infrastructure. Cimory has capitalized on this by building a distribution network that leverages multiple channels, such as modern trade (supermarkets and hypermarkets) and rapidly growing general trade (wholesalers and small privately owned stores) with over 120,000 outlets across the country.
The company also runs an exclusive direct-to-consumer channel, Miss Cimory (MCM), featuring over 5,000 agents who deliver products weekly to more than 500,000 households across Java and other areas to gather and analyze customer data directly, offering deep insights into preferences and behaviours.
Fast growing local Dairy Market aligned with economic developments of Indonesia
With a strong focus on premium products, Cimory operates in Indonesia's rapidly growing dairy market, experiencing robust growth with projections indicating a CAGR of 5.4% from 2022 to 2027, potentially reaching USD 12.7 billion by 2027.
Despite its growth, the dairy market in Indonesia is still in its early stages, presenting significant opportunities. With a population of around 270 million, an average age of 30, and a rising middle class of 115 million as of 2022, demand for dairy products is increasing. Still, with a milk consumption at 16 kg per capita annually, Indonesia falls well below the Food and Agriculture Organization’s (FAO) low limit of 30 kg and lags behind Southeast Asian countries like Vietnam (28 kg) and Thailand (44 kg).
As incomes rise and purchasing power increases, Indonesians are likely to adopt Western dietary habits, creating significant growth potential in the local dairy market. In 2022, domestic production met only 20% of the 4.4 million-ton demand, leaving the market heavily reliant on imports, especially milk powder. If consumption reaches the lower end of FAO's milk consumption range of 30 kg per capita annually, demand could exceed 8 million tons, further exposing the domestic dairy market to global price fluctuations.