Bentoel Group

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PT Bentoel Internasional Investama Tbk.
Subsidiary
Industry Tobacco
Founded 1930
Founder Ong Hok Liong
Headquarters Malang, Indonesia
Key people
Jason Fitzgerald (President Director)
Products Cigarettes
Revenue Increase Rp 19.2 trillion (2016)
Decrease Rp - 2.1 trillion (2016)
Total assets Increase Rp 13.5 trillion (2016)
Total equity Increase Rp 9.441 trillion (2016)
Number of employees
6,000 (2016)
Parent British American Tobacco
Website www.bentoelgroup.com

PT Bentoel Internasional Investama Tbk or Bentoel Group is an Indonesian tobacco company. It is the fourth-largest tobacco firm in Indonesia after Sampoerna, Gudang Garam and Djarum in terms of market share.[1] In 2009, London-based British American Tobacco, the world's second-largest tobacco company, acquired a 99.74% stake in Bentoel.[2] In early 2010, the company was merged with PT BAT Indonesia Tbk.

The company's local brands include Bentoel Biru, Sejati, and Star Mild. It also manufactures international brands Lucky Strike and Dunhill.

History[edit]

Ong Hok Liong (born 12 August 1893)[3] worked in his father's tobacco trading company in Bojonegoro, East Java, but his propensity for gambling prompted his wife to move the family, first to Sumberwaras and then to Malang. In 1920, Ong started a kretek company with his brothers and pawned his wife's jewelry to fund his share. He introduced numerous brands but most failed. In 1935, he developed a new brand to be called Djeruk Manis (sweet orange) but during a visit to the sacred Gunung Kawi mountain, he had a dream about a bentoel (cassava root) vendor. This prompted him to adopt the name Bentoel for his new cigarette. The brand was a success. By 1950, Ong had about 3,000 staff and acquired a cigarette factory in Blitar.[4] A heavy smoker who drank arak rice alcohol to ease the pain in his throat, Ong died in 1967 from chronic liver disease.[5] Labor problems in 1968 prompted Bentoel to begin using fully automated rolling machines - a first for the kretek industry.[4]

By the late 1970s, Bentoel was ranked third in Indonesian cigarette production and dominated the machine-made kretek sector. In 1979, a government decree restricted the amount of machine-made kretek. This policy caused the company's fortunes to suffer. Bentoel received significant foreign investment but in late 1990 its chief executive (one of Ong's sons) resigned as the company had debts of several hundred million dollars. In 1991, Rajawali Group bought a majority stake and replaced managers and directors.[4] In June 2009, BAT bought an 85% stake in PT Bentoel Internasional Investama for $494 million and would purchase the remaining public shares by the end of August 2009.[6]

1987 lawsuit[edit]

In 1987, lawyer Robert Odjahan Tambunan filed a class-action lawsuit on behalf of Indonesian youth against Bentoel for allegedly breaking the law by using the words Remaja Jaya (Successful Youth) as a brand name. Central Jakarta District Court dismissed the Rp 1 trillion lawsuit on the grounds Tambunan had no right to act as a representative of Indonesian youth. Tambunan had argued the nicotine product could destroy Indonesian children and lead to the nation's downfall. The lawsuit was also filed against Jakarta city administration, the Justice Ministry's patent and copyright directorate, and Prambors radio station.[7]

Business[edit]

In 2016, Bentoel Internasional was the fourth largest cigarette producer in Indonesia with a market share of approximately 7%. The company makes machine-made kretek, hand-made kretek and white cigarettes.[8]

Brands[edit]

  • Dunhill
    • Dunhill Classic (Red)
    • Dunhill Lights
    • Dunhill Menthol Lights
    • Dunhill Mild
    • Dunhill Filter
    • Dunhill Mild Ultra
  • Lucky Strike
    • Lucky Strike Original Filter (Red)
    • Lucky Strike Original Lights (Blue)
    • Lucky Strike Switch
    • Lucky Strike Mild
    • Lucky Strike Bold
  • Star Mild Single Filtration

References[edit]

  1. ^ "Tobacco - Mirae Asset Sekuritas" (PDF). Mirae Asset Sekuritas. M irae Asset Daewoo Co., Ltd. Retrieved 12 April 2018.
  2. ^ Tjahjono, Venisa (20 October 2009). "BAT Indonesia To Merge with Bentoel". Jakarta Globe. Retrieved 12 April 2018.
  3. ^ "Menengok Masa Lalu Pabrik Rokok Bentoel". SPORTOURISM. 9 March 2016. Retrieved 12 April 2018.
  4. ^ a b c Mark Hanusz (2000). Kretek: The Culture and Heritage of Indonesia's Clove Cigarettes. Equinox Pub. pp. 126–127. ISBN 978-979-95898-0-4.
  5. ^ Graham, Duncan (3 November 2006). "WHERE THERE'S SMOKE THERE'S A STORY". The Jakarta Post. Retrieved 12 April 2018.
  6. ^ Silka, Tyagita (17 June 2009). "BAT eyes Asia boost from Bentoel deal". Reuters. Retrieved 12 April 2018.
  7. ^ Muninggar, Sri Saraswati (24 July 2002). "Media outlets being sued for cigarette ads". The Jakarta Post. Retrieved 12 April 2018.
  8. ^ Timmerman, Antonia (18 April 2016). "Indonesia: Bentoel Internasional to raise $1.06b via rights issue to repay debt". DealStreetAsia. Retrieved 29 April 2018.

External links[edit]