Lovina Beach Brewery Targets Export Growth as Domestic Market Slows

JAKARTA - PT Lovina Beach Brewery Tbk is preparing to accelerate its expansion into international markets in 2026, as the company looks to offset slowing domestic consumption by increasing export-driven revenue.

The company recently introduced three new products aimed primarily at overseas markets, namely COCO BALI ready-to-drink beverages, as well as premium alcoholic products CLARISSA and LIBARRON. Management views international markets as offering stronger growth potential compared to the domestic market, which continues to face pressure from declining purchasing power.

President Director Bona Budhisurya said the company’s growth targets for 2026 include a significant increase in both revenue and net profit compared to 2025, with exports expected to contribute a larger share of total sales.

“International markets provide very large opportunities. Our focus is to ensure that export performance can become the main growth driver,” he said following the product launch in Bali.

According to Bona, the decision to prioritize exports is a strategic response to current market conditions. Rather than relying solely on domestic demand, the company is actively pursuing overseas partnerships to expand its distribution network.

As part of this effort, PT Lovina Beach Brewery Tbk has signed a letter of intent with Japan-based logistics and distribution company Naoyoshi Co., Ltd. The partnership is intended to support the marketing of COCO BALI RTD as well as the company’s spirit products in Japan.

Japan is considered a key target market, particularly for ready-to-drink beverages, a category that continues to grow across the Asia-Pacific region. Bona noted that even a small market share could have a substantial impact on production requirements.

“If we capture a very small percentage of the Japanese RTD market, our production capacity would need to increase significantly,” he said.

Currently, the company’s production facility in Singaraja operates at approximately 3.000 cans per hour. Management plans to gradually increase capacity to around 20,000 cans per hour, primarily by maximizing labor utilization rather than investing heavily in automation in the short term.

“For now, employing local workers and extending shifts is more efficient than investing in expensive machinery,” Bona explained.

COCO BALI RTD is positioned as the company’s main product in the ready-to-drink segment. Made from coconut kopyor, the beverage is offered in sparkling agave and golden salak variants, with key raw materials sourced from Nusa Penida, Bali.

Bona observed that global consumer preferences, particularly among younger demographics, are shifting toward low-sugar and low-alcohol options.

“Health awareness is increasing, especially among Gen Z consumers. They tend to prefer lighter, easier-to-drink products,” he said.

CLARISSA and LIBARRON, meanwhile, are aimed at the premium spirits market and are being prepared for entry into regions such as the United States, Europe, and Mexico. These markets are seen as receptive to craft products with distinctive flavor profiles and strong origin stories.

In the initial phase, the company expects export sales to account for around 60 percent of total revenue, with the remaining 40 percent coming from the domestic market. If additional contracts in Europe and the United States are secured, management projects that export contributions could rise to as much as 90 percent.

In addition to its current portfolio, the company is also developing an agave-based spirit made entirely from Balinese raw materials. The product has reportedly attracted interest from international partners due to its unique origin.

“This is a product made in Bali, from Bali, for global markets,” Bona said.

Lovina recorded sales of Rp 29.8 billion in 2024. Management remains optimistic that its export-focused strategy will mark a turning point in the company’s performance over the coming years.