Autogrill Enters Indonesia, Strengthens Asia Presence

Autogrill Group enters Indonesia having won three 5-year contracts to operate 16 points of sale: 11 at Ngurah Rai International Airport in Bali, two at the Surabaya-Juanda hub in East Java Balikpapan Sepinggan Airport and three at Balikpapan Sepinggan...

Autogrill Group (Milan: AGL IM) continues its expansion in Asia and enters Indonesia having won three 5-year contracts to operate 16 points of sale: 11 at Ngurah Rai International Airport in Bali, two at the Surabaya-Juanda hub in East Java Balikpapan Sepinggan Airport and three at Balikpapan Sepinggan Airport in Kalimantan. The business will be run by ATG Indonesia, the new company set up via a joint venture between Autogrill’s HMSHost International division and Taurus Gemilang, a local airport Food & Beverage operator. These concessions are expected to generate total revenues of around US$90m over the 2014-2018 period.

“Our start-up in Indonesia follows our entry into Vietnam in April, when we embarked on a new phase of our development in emerging Asian economies,” said Gianmario Tondato Da Ruos, Autogrill CEO. “Our expertise in forming partnerships with local enterprises has strengthened our cross-cultural identity and capacity and bolstered theglobalization of our activities.”

The points of sale at the Bali-Ngurah Rai airport will be located in the International Terminal and span a total of more than 2,200 square meters. The offering will include a variety of international and local brands, popular in the South East Asia region, reflecting the multi-ethnic mix of travellers using this airport. Autogrill will bring a Western coffee brand complemented by Toast Box, a local coffee and bakery concept, and La Place Express, a European fresh food market concept. The offering will be enriched with brands from the Group’s own portfolio such as Two Tigers, a sushi & noodle bar, Urban Food Market, an “on the go” convenience store with a focus on fresh ingredients cooked to order on premise. Additionally, a themed café and bar concept, The Last Wave, will be designed specifically for the Balinese tourist market providing travellers with a signature sense of place specific to the tropical island.

In Surabaya-Juanda Airport’s new Terminal 2, the retail concepts will introduce international brands such as Burger King and Popeye, a quick-service chicken-based concept. In Balikpapan’s International Airport, the offering will include an Espresso 2 Go, a Western coffee-based concept, and a Burger King.

"This partnership with Autogrill is of great value to us because it brings to the market the experience and know-how of a world leader in this sector,” said Budi Purnomo, Taurus Gemilang CEO. “Our knowledge of Indonesian passengers together with Autogrill’s expertise opens up a scenario full of opportunities.”

These three airports are managed by Angkasa Pura I, a State-Owned Enterprise specialized in airport management. The company manages a total of 13 airports spread across central Indonesia and reaching all the way up to the eastern part of the country, from Ahmad Yani Airport in Semarang, up to Frans Kaisiepo Airport in Biak located in the far eastern tip of the archipelago.

“Through this partnership we believe Ngurah Rai International Airport, Juanda Airport and Balikpapan Airport will deliver high quality brands, excellent customer service and value-for-money products.” said Tommy Soetomo, President Director of Angkasa Pura I.

Together with China and India, Indonesia is one of the Asian countries with the highest growth potential in airport Food & Beverage. Since 2004, it has seen its GDP grow at an average annual rate of approximately 5% making Indonesia one of the most dynamic economies in the South East Asia region.

Bali - Ngurah Rai Airport
Bali is Indonesia’s biggest tourist attraction. Its airport is the main gateway to the island for the numerous tourists for vacations every year. The passengers mix represents mostly Australian (26%), Chinese (13%), Japanese (10%), Malaysian (6%) and Korean (5%). With over 14 million passengers (around 50% international) in 2012 (+12% vs. 2011), Ngurah Rai is the country’s third largest airport by traffic [1]. The Bali - Ngurah Rai Airport added a newly built International Terminal to increase the overall capacity and is expected to handle up to 24 million passengers per annum by 2018.

Surabaya-Juanda Airport
Located in East Java, Surabaya-Juanda is the country’s second largest airport by traffic after Jakarta. It has enjoyed 16.3% average annual growth in passengers since 1999, topping 16 million in 2012. To handle growing passenger flows (expected to reach 30 million within the next two years1) the airport has initiated an extension programme with the building of a new Terminal 2, mainly for international flights.

Balikpapan- Sepinggan International Airport
Sepinggan International Airport is the main airport serving East Kalimantan. The airport operates both domestic and international flights flying to Singapore. Domestic airlines operate services to Jakarta, Makassar, Surabaya and other locations in the archipelago.

[1] Sources: Ngurah Rai International Airport and Juanda International Airport


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