Called by the DKI DPRD, PT Delta admits that the sale of beer is weak because Millennials-Gen Z now prefer to drink coffee

Photo: Diah Ayu-VOI

JAKARTA - The B Commission of the DKI Jakarta DPRD summoned PT Delta Djakarta's ranks in the annual performance evaluation meeting. As reported, the company that produces alcoholic beverages is included as one of the regional business entities (BUMD).

The DKI Provincial Government has a share of 26.25 percent of the beer producer with the brands Anker, Carlsberg, to San Miguel. Meanwhile, the majority of shares are owned by San Miguel Malaysia with 58.33 percent, and 15.42 percent.

In his report to the DKI DPRD, Sales Director of PT Delta Djakarta Ronny Titiheruw admitted that the sale of beer products had experienced a downward trend in recent years. This resulted in declining revenue and dividend distribution to shareholders being reduced.

"In 2024 we experienced a significant decline in sales and contraction because there are many factors," said Ronny at the DKI Jakarta DPRD building, Tuesday, January 27.

Ronny explained that one of the factors that resulted in a decrease in beer sales revenue was the shift in the preferences of young people or the productive age from previously consuming alcoholic beverages in pubs or bars to consuming coffee in cafes.

"Coffee is now still a very trendy drink and many beer drinkers, especially among young people. Millennials or Gen Z now prefer to hang out, drink non-alcoholic drinks, coffee, and this also causes a decrease in consumption," said Ronny.

In addition, many residents and business actors in the area have begun to switch to consuming or selling local wine produced by small industries. This is because the drink is sold at a cheaper price than the manufacturer's beer.

Then, another factor that causes PT Delta's profit decrease is the increase in fuel prices, inflation, and the increase in taxes on alcoholic beverages in the new government policy since the beginning of 2024.

"This combination of factors has led to a significant increase in prices, which has led to a decline, not only PT Delta but arguably the alcohol industry including the beer industry has contracted. The decline is approximately 5 to 6 percent if I'm not mistaken," he explained.

It is known that in the financial statements for 2024, PT Delta Djakarta had a net profit of IDR 142.3 billion. This beer producer deposited dividends of IDR 137.7 billion and the DKI Provincial Government received IDR 36.15 billion.

This figure is lower than the dividend value in 2023 which was deposited to the DKI Provincial Government with a figure of Rp. 59 billion, as well as the dividend in 2022 of Rp. 68.3 billion.

In response to this, the Chairman of Commission B of the DKI Jakarta DPRD, Nova Harivan Paloh, asked the DKI Provincial Government and PT Delta Djakarta to be able to increase revenue for the increase in the value of dividends deposited into the regional treasury.

"We also want to see how they create market dominance. What kind of marketing strategy in the future. Hopefully in the future the capex (capital expenditure/capital expenditure) will be increased again. The term is how he expands the market," said Nova.