Unilever Sells SariWangi to Djarum Group, Exits Indonesia’s Tea Market in IDR 1.5 Trillion Deal

In a significant development for Indonesia’s fast-moving consumer goods (FMCG) sector, PT Unilever Indonesia Tbk has agreed to divest its entire tea business, including the well-known SariWangi brand, to Djarum Group.

The transaction, valued at IDR 1.5 trillion, formally marks Unilever’s exit from Indonesia’s packaged tea market.

Deal Snapshot: Unilever–SariWangi Transaction

• Seller: PT Unilever Indonesia Tbk
• Buyer: PT Savoria Kreasi Rasa (a Djarum Group subsidiary)
• Brand Included: SariWangi tea
• Deal Value: IDR 1.5 trillion (~USD 89 million)
• Expected Completion: By March 2, 2026

The agreement was signed in early January 2026 and is subject to standard regulatory and closing approvals.

Why Unilever Is Exiting the Tea Business

The divestment aligns with Unilever’s global strategy to streamline operations and focus on higher-margin, faster-growing categories such as Beauty, Personal Care, Health, and Wellbeing.

According to company disclosures, the tea segment contributed a relatively small share to Unilever Indonesia’s overall performance, accounting for under 3% of total revenue and net profit. As growth in packaged tea slowed, the business no longer fit Unilever’s long-term priorities in the region.

Company leadership stated that the sale would allow Unilever Indonesia to reallocate capital toward its core Home and Personal Care portfolio.

A Broader Restructuring Trend at Unilever Indonesia

This is the second major divestment by Unilever Indonesia within a year. In late 2025, the company had already exited the ice cream category through the sale of its Wall’s business.

Together, these moves signal a clear shift away from food and refreshment segments in Indonesia, reinforcing Unilever’s focus on fewer but more profitable categories.

Djarum Group Strengthens Its FMCG Presence

For Djarum Group, the acquisition represents a strategic expansion of its fast-growing food and beverage portfolio. Through Savoria Kreasi Rasa, the group has been steadily building consumer-facing brands across snacks and beverages.

By acquiring SariWangi, Djarum gains:

• An instant leadership position in Indonesia’s tea bag market
• A brand with over five decades of consumer trust
• Strong nationwide distribution and brand recall

Rather than launching a new tea label, Djarum inherits a name deeply embedded in Indonesian households.

SariWangi: A Legacy Brand Changes Ownership

Founded in 1973, SariWangi played a pioneering role in popularizing tea bags (“teh celup”) in Indonesia, a market once dominated by loose-leaf tea. Unilever acquired the brand in 1989 and scaled it into one of the country’s most recognizable beverage brands.

The transfer of ownership marks the end of a long chapter under Unilever and the beginning of a new phase under Indonesian corporate ownership.

Market View and Industry Impact

Industry analysts view the valuation as reasonable for a mature, slower-growth category. For Unilever, the deal unlocks cash for reinvestment, while for Djarum, it provides a stable, cash-generating consumer brand.

The transaction also highlights a broader FMCG trend in Southeast Asia, where multinational corporations are pruning portfolios while local conglomerates step in to scale legacy brands.

What Lies Ahead

Once completed, the SariWangi sale will reshape Indonesia’s packaged tea landscape. Unilever Indonesia will emerge leaner and more focused, while Djarum Group will strengthen its foothold in everyday consumer staples. How effectively SariWangi evolves under its new owner will be closely watched by both competitors and consumers.

Frequently Asked Questions (FAQ)

1. Why did Unilever sell the SariWangi brand?

Unilever sold SariWangi to focus on higher-growth and higher-margin categories like beauty, personal care, and wellbeing, as tea had become a smaller contributor to revenue.

2. Who is buying SariWangi from Unilever?

The buyer is PT Savoria Kreasi Rasa, a subsidiary of Indonesia’s Djarum Group.

3. What is the value of the Unilever–SariWangi deal?

The transaction is valued at IDR 1.5 trillion, or approximately USD 89 million.

4. When will the deal be completed?

The ownership transfer is expected to be finalized by March 2, 2026, subject to regulatory approvals.

5. Will SariWangi products change after the acquisition?

There is no immediate announcement of changes. The brand is expected to continue operating while exploring future growth under Djarum Group’s FMCG strategy.