Thursday 30 March 2023

SOUTH KOREA – Lotte Food announces a joint-venture with Nestle

Must read

SEOUL – Lotte Food, a Lotte Group company, and Swiss-based multinational Nestle will create a joint venture called “Lotte-Nestle (Korea) Co.” Through the alliance, Lotte intends to regain the market share in the coffee market that it has lost out to rivals like Dongsuh Food and Namyang Dairy Product.

The two companies announced on January 27 that they would establish Lotte-Nestle (Korea) on a 50:50 basis.

In addition to “coffee mix” (instant coffee that comes pre-mixed with non-dairy creamer and sugar), Lotte will run business with Nestle in a wide variety of product areas including chocolate malt beverages, fruit powder drinks, coffee creamers, and pet care products.

All other product items offered by Nestle will be sold through a new company to be founded and run exclusively by Nestle.

The latest deal with Nestle is widely interpreted as an ambitious move by Lotte to strengthen its coffee business.

Currently Lotte Food has a small presence in the coffee market through its “Cantata” brand offered by Lotte Chilsung. Still it is way behind other coffee makers such as Dongsuh Food, Namyang Dairy Product, and Nestle.

Lee Young-ho, president of Lotte Food, said, “The joint venture will Nestle will provide the best-quality coffee to the coffee lovers in Korea.

Already coffee mix products produced in our Cheongju plant are sold in 30 countries worldwide.

The alliance with Nestle will give us an opportunity for us to leapfrog toward the world further.”

Source: The Korean Economic Daily.

Latest article