Unilever Indonesia has agreed to sell its popular Sariwangi tea business to a subsidiary of the Djarum Group for 1.5 trillion rupiah. The deal, signed on January 6, 2026, focuses on sharpening Unilever’s growth in core areas and is set to close by March 2, 2026.
Deal Highlights and Timeline
Unilever Indonesia, a major player in consumer goods, announced the sale through a business transfer agreement. This move follows the company’s strategy to offload non-core assets.
The buyer, PT Savoria Kreasi Rasa, is linked to the Djarum Group, known for its tobacco and other ventures. The transaction value stands at 1.5 trillion rupiah, excluding taxes, and includes the Sariwangi brand, a leader in Indonesia’s teabag market.
Completion is planned for early March, with both sides signing handover documents then. This sale comes after Unilever’s 2025 divestment of its ice cream business for seven trillion rupiah.
Experts see this as part of a global trend where companies streamline operations amid economic shifts.
Sariwangi’s History and Market Role
Sariwangi has deep roots in Indonesia, starting as a local tea brand before Unilever acquired it years ago. It holds strong appeal with its black tea bags and cultural ties.
The brand commands a solid share in the teabag segment, where consumers favor affordable, quality options. Recent data shows Indonesia’s tea market growing at 4 percent annually, driven by rising demand for packaged drinks.
In 2025, Sariwangi contributed about 2.7 percent to Unilever Indonesia’s revenue and 3.1 percent to net profit. This modest role made it a candidate for sale.
Despite past challenges, like a 2018 bankruptcy of its original manufacturer, Unilever kept production going through other facilities.
The brand’s recognition remains high, with surveys indicating over 60 percent consumer awareness in urban areas.
Unilever’s Broader Strategy
Unilever is refocusing on high-growth sectors like personal care and nutrition. Benjie Yap, the company’s president director, stated the sale allows better resource allocation.
This fits Unilever’s global plan, seen in its 2021 sale of most tea operations for 4.5 billion euros. In Indonesia, it follows the ice cream divestment.
Financially, the deal equals 45 percent of Unilever Indonesia’s equity as of September 2025. Stock analysts predict a positive impact on shares, with recent reports showing improved margins.
- Key strategic goals: Boost core segments, enhance shareholder value, adapt to market changes.
- Recent moves: Sold ice cream unit in 2025, now tea business in 2026.
The company aims for sustainable growth, targeting emerging trends like health-focused products.
Impact on Indonesia’s Tea Industry
This sale could reshape the local tea market, where competition is fierce from brands like Wings and Mayora. Djarum’s entry might bring new innovations.
Indonesia’s tea consumption hit 150,000 tons in 2025, with teabags making up 30 percent. Sariwangi’s transfer to a local group may strengthen domestic control.
| Aspect | Before Sale (2025) | After Sale Projection (2026) |
|---|---|---|
| Revenue Share for Unilever | 2.7% | 0% (divested) |
| Market Share of Sariwangi | ~15% in teabags | Stable, under new owner |
| Annual Tea Market Growth | 4% | Expected 5% with innovations |
| Employment Impact | Minimal changes | Potential expansion by Djarum |
Consumers might see product tweaks, but experts expect the brand to thrive under Djarum’s resources.
Job impacts appear limited, as the deal involves business transfer without major layoffs announced.
What This Means for Consumers and Investors
For tea drinkers, Sariwangi should remain available, possibly with fresh marketing from Djarum. Investors view this as a win for Unilever, freeing capital for investments.
In the bigger picture, it highlights shifts in consumer goods, with firms like Unilever prioritizing efficiency. Similar deals in 2025, like other FMCG sales, show this trend.
Looking ahead, Djarum may expand Sariwangi internationally, leveraging its network.
We encourage you to share this article with friends and leave comments below on how this deal might affect your daily tea routine or investment choices.
