MILAN, Italy – Autogrill Group 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 and three at Balikpapan Sepinggan Airport.
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 with which we embarked on a new phase of our development in emerging economies in the Asiatic area,” said Gianmario Tondato Da Ruos, Autogrill CEO.
“The globalization of our activities is strengthened by our expertise in forming partnerships with local enterprises, thus strengthening our cross-cultural identity and capacity.”
The points of sale at the Bali-Ngurah Rai airport will be in the International Terminal and cover a total of over 2,200 m. 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, as well as a focus on fresh ingredients cooked to order on premise. Further a themed café and bar concept, The Last Wave, will be designed specifically for the tourist market providing travellers with a signature sense of place of the tropical island of Bali.
In Surabaya-Juanda Airport’s new Terminal 2, the concepts will introduce international brands such as Burger King and Popeye, the 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 knowhow 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 the central, all the way up to the eastern part of Indonesia, 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 services and selling value for money products.” said Tommy Soetomo, President Director of Angkasa Pura I.
After 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 has grown at an average annual rate of around 5% making Indonesia one of the most dynamic economies in the South East Asia region.