Winning markets with ofi’s Food & Beverage Solutions

Think about your favorite chocolatey ice-blended coffee or cheesy snack with that kick of sambal spice. We work with customers – be it a CPG, Foodservice operator, or a retailer – to deliver that smile by co-creating delightful, good and tasty food and beverages.   

 

ofi’s F&B Solutions builds on what sets us apart as a business today – including the 30-year legacy of Olam across Cocoa, Coffee, Dairy, Nuts and Spices, and its evolution into a leading agri-business company supplying and providing ingredients and solutions today.

 

Now, why does that matter to our customers? If you look at beverages today for example, coffee, cocoa, nuts, and dairy form the backbone of each drink. Behind these tasty drinks consumers pick up, there is an underlying expectation of consistency and quality. 

 

That is where solution partners like ofi come in to co-develop and formulate for operational efficiencies and scale. More importantly, we look at how to cater for greater consistency of quality and supply in a fit-for-purpose solution that delivers value that our customer wants to deliver to their consumers. 

 

And this is where our broad yet complementary portfolio of ingredients, global origination and sourcing capabilities and experience managing the associated regulatory and supply chain risks, put us in a good position to be that trusted partner of choice.  

 

 

 

Would you say it is revolutionizing co-creation? What innovations and benefits does it bring to your customers? 

Variation at the ingredient level is critical in creating new flavors and offerings in the market. As a formulator of any bespoke solution, access to an extensive ingredient product library, with varying grades, deep knowledge of  ingredient functionality is critical. 

 

Layer on the increasingly volatile business landscape and supply shocks we have seen in the industry over the past few years, and you will see how formulation experts who rely on varying ingredients available in the market and put them together to provide a solution are finding it increasingly challenging.   

 

Here at ofi, our food scientists draw upon an expansive innovation network and the rich heritage of ofi’s global ingredient sourcing expertise. Having access to a consistent supply of quality ingredients is also equally important in formulations and ofi’s five ingredient platforms, its multiple products and supply chains and more than 120 processing facilities across the world makes a huge difference in our ability to customize and bring our customers’ ambitions to life.  

 

Let’s take coffee in Indonesia for example. We know Indonesian young adults love coffee. Our latest research shows that 7 out of 10 enjoy coffee or tea shop drinks several times a week, with 1 in 3 drinking either coffee or tea on a daily basis¹. 

 

In conversation with our customers, I have also seen the uptake for more cold coffee-based formulations to address younger Indonesian consumer demand. Beyond taste, Indonesian consumers are also expecting more from their coffee. 

 

Today businesses must offer exciting, distinct, and consistently deliver taste profiles to stand out, catering to varied preferences that go beyond the bold nutty flavor profiles to the light, fermented notes of acidic and fruity variants of coffee. 

 

Being able to differentiate is key here when there are so many options available in the formulation of the beverage solution. And I know our customers trust a partner that can deliver customizable, consistent and convenient formulations that accelerate their R&D process and wow their consumers.  

 

Having explained this platform, what is your role as the head of F&B Solutions in Indonesia? What are the expectations? 

Ramki Prasad, our Asia Pacific Head of F&B Solutions, had an interesting way of putting this: we want to have the first right of refusal from our customers. Working alongside many of these home-grown companies, our goal must be to always be our customers’ first call when they face an issue.

 

Indonesia is a huge market – one with the fourth largest population in the world today with a GDP per capita that has quadrupled in the past decade. Hence, my mantra as the Head of F&B Solutions, Indonesia is very clear: to make our customers win and capture the opportunities available here.  

 

There are three key drivers for me personally. Firstly, my background as an entrepreneur helps me solve problems and issues for my customers. Having grown my businesses in the past, I know the challenges and pain points of many of them, and I am confident that ofi can partner them to tailor bespoke solutions.  Secondly, we are strengthening our capability and capacity in Indonesia for Indonesia and beyond by delivering local understanding when building additional capabilities needed to deliver the right solution.  

 

As Head of F&B Solutions in Indonesia, I am also part of the F&B Solutions regional leadership team. Beyond the operational capabilities, I am personally invested in the culture we want to nurture, and how we engage and grow our people. In addition to wanting to build a profitable business, I am proud that ofi is committed to partnering to make a positive impact, for  employees, customers, and the communities we operate in.

 

 

"Our goal must be to always be our customers’ first call

when they face an issue"

 

 

What common concerns do you hear from food and beverage manufacturers, relevant to how ofi can assist them? 

Food and beverage manufacturers today must be agile to thrive. The supply chain alone in itself
is increasingly complex. Over the last few years, businesses had to deal with heightened volatility, record prices in ingredients, and other disruptions introducing supply shocks. 

 

Geopolitical tensions and macroeconomic uncertainty continued to weigh on consumers too. And with all these back-end complications, we are also seeing extremely transient demand from consumers with lifespan of trends becoming shorter and shorter, paradoxically consumers are also expecting and expressing a desire for something more. 

 

Food and beverage manufacturers are faced with an enormous task – to deliver on time, value, cost, quality, speed, consumer demand, and remain profitable as a business. What they are looking for is a trusted, like-minded partner – someone they can rely on to ease part of the pressure, understand what the market demands, and respond quickly to both emerging trends and unexpected disruptions, all backed by a strong end-to-end supply chain presence which ofi provides. 

 

We leverage in-origin insights, with a deep understanding of source regions and crop development allowing us to anticipate, position for and respond to local challenges, such as low yields, ahead of the market. Furthermore, our global scale and diversification across our 120 factories globally reduce dependency on any single origin, spreading risk across multiple  regions and providing supply surety for customers. 

 

 

Are R&D, formulation concerns similar whether in Indonesia, or other parts of Southeast Asia? What are their priorities? 

From my perspective, R&D formulation experts must always keep in mind one core principle: Is it  fit for purpose? From a concerns angle, a fit for purpose product will then naturally deliver on functionality, taste, price, consumer demand, while complying with necessary regulatory and legal requirements defined by the destination market. 

 

While core concerns — taste, functionality, price, and regulatory compliance — are universal, what changes is emphasis and prioritization. Within the Southeast Asian market, we are faced with what we term colloquially as a ‘same same but different’ reality. The sub-region may share many similarities on a broad basis, but depending on category, customer, consumer segment, age, and channel of delivery, these results in adjustments that will need to be nuanced to win across the market. 

 

Beyond the formulation perspective, there is also growing focus on the inputs of these formulations. What are the ingredients you are using? Where are these ingredients coming from? How have they been sourced? In markets where these have stronger implications, the R&D Scientist will take this on as a leading priority. And this is where a trusted partner can work alongside businesses to localize product offerings and help customers win with consumers. 

 

 

 

"Within the Southeast Asian market, we are faced with what 

we term colloquially as a ‘same same but different’ reality"

 

 

 

How does ofi contribute to healthier options? Are there new ingredient solutions? 

Our ingredient platforms are natural, nutritious, and delicious. And across these product offerings, there is extensive research that presents the associated health benefits of nuts, coffee, spices consumption. This is an advantage we bring using these ingredients in our F&B Solutions platform, to open up more on-trend and inspired product ideation opportunities.   

 

We have worked on various formulations across the region which have reduced sugar and salt contents and have been offering fortifications for fiber and protein in beverage solutions. Take reduced sugar formulations in beverages for example, our experts have been able to lower sugar content with the natural sweetness that could come from dairy or nuts without changing the taste or consistency. 

 

Similarly in lower sodium formulations, we have created salt seasonings with our customers and partners in China which utilize spices to boost the umami flavor, while reducing one’s overall sodium consumption – all while using the same amount of product. 

 

So our goal is simple, harnessing the goodness of our natural ingredient portfolio, offering fit for purpose formulations that are healthier to our customers, to deliver delicious beverages and products that consumers can enjoy. Because at the end of the day, consumers want great taste.

 

From a supply and manufacturing perspective, where do Indonesia’s strengths lie within the F&B ingredients sector?

I am optimistic of Indonesia’s growing strength as an archipelago. Indonesia’s population size  alone indicates an intrinsic demand locally for food and beverages. Indonesia’s median age today stands at 30, with a pipeline of extremely bright young talent who are better enabled by technology and AI. 

 

We have been in Indonesia since 1996. ofi has seen this transformation and have grown our business with many talented Indonesians drawn to our purpose of being the change for good food and a healthy future. 

 

With the country’s abundance of natural resources and agriculture expertise, we have also seen Indonesia grow to be a leading producer of coffee, cocoa and spices globally. With this rise, we have also witnessed the growth of many large conglomerates which have been able to  dominate the F&B scene with innovative products and supply chain efficiency. 

 

Across food safety and certifications, Indonesia also delivers with Standar Nasional Indonesia (SNI) standards globally recognized. In terms of Halal certifications alone, Indonesia has a clear ambition to become the industry leader to tap into the vast potential with export transactions reaching US$64.11 billion in 2024. 

 

With strong production capabilities, a well-oiled supply chain, and capable young talent, we continue to see Indonesia as a key growth market.