Jakarta. Nippon Indosari, a listed Jakarta-based bread and cake producer, reached an agreement with Caffe Bene, a Seoul-based coffeehouse chain, to supply its pastry and cakes to all of Caffe Bene's outlets in South Korea, making another significant inroad beyond the Southeast Asian market.

Nippon Indonesia, best known in Indonesia for its range of Sari Roti bread and cakes, entered Philippine market last year by establishing a joint venture with Monde Nissin. Nippon runs a factory in Manila under the joint venture, contributing $6.87 million, or equivalent to a 55 percent stake in the business unit.

Starting in December, Nippon Indosari's products will be available in all 576 Caffe Bene outlets, branded as "Caffe Bene by Sari Roti."

"We are delightful that Sari Roti is now the exclusive supplier of pastry and cakes for Caffe Bene, South Korea's leading coffee house chain. Thanks to this deal, our company is now one step closer to become the leading bread producer in Asia by 2025," Nippon Indosari's president director and chief executive Wendy Yap said in a statement on Thursday (19/10).

Sari Roti, the biggest bread products brand in Indonesia by market share, will also begin production at a new factory in the Philippines early next year. Construction of the factory is slated to be complete by the end of this year. The factory will focus on producing premium bread and cakes for the Philippine market.

Caffe Benne started its coffee chain in South Korea in 2008. It now has 129 shops in 14 countries. It opened its fifth store in Indonesia last year at BTPN Tower in South Jakarta.