McCormick expanding into Indonesian market

February 26, 1994|By Ross Hetrick | Ross Hetrick,Staff Writer

In its first incursion into the Indonesian market, Sparks-based McCormick & Co. Inc. yesterday announced it has formed a joint venture with a major Indonesian company to manufacture and market spices and herbs in the Southeast Asian island country.

"It's a pretty exciting opportunity," said James J. Albrecht, McCormick's group vice president for Asia and the Pacific. He noted that Indonesians consume twice the volume of spices and herbs that the average American or European does. Indonesia's population is 180 million.

The joint venture is with PT Rodamas of Jakarta, which is involved in about 16 joint ventures with other non-Indonesian companies, Mr. Albrecht said. PT Rodamas' annual share from these efforts, which include glass production, printing, cosmetics and food, is about $1.6 million a year.

The joint venture, which will be known as PT McCormick Indonesia, will build a plant outside of Jakarta. Construction should be finished by August, Mr. Albrecht said.

He declined to say how much the plant will cost, saying estimates have not been completed. "It certainly will be more than a couple of million," Mr. Albrecht said.

McCormick, the largest spice and flavorings company in the world, in recent years has aggressively pursued its international business, which now accounts for 35 percent of its sales.

International sales have jumped to $321.6 million last year from -- $232 million in 1988 -- not including sales from joint ventures, which were close to $300 million last year.

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