Lotte Confectionery and Lotte Foods Resolve Merger at Board Meeting... Merged Company to Launch in July

A Mega Comprehensive Food Company with Total Sales Exceeding 3.7 Trillion Won Emerges

[Asia Economy Reporter Eunmo Koo] Lotte Confectionery and Lotte Foods announced on the 23rd that they have resolved to merge through their boards of directors.

The two companies plan to complete the merger on July 1 after obtaining approval at the shareholders' meeting on May 27. This merger will be structured with Lotte Confectionery as the surviving entity absorbing Lotte Foods.

The merger was made to actively respond to the rapidly changing food and beverage business environment. Through the merger with Lotte Foods, Lotte Confectionery expects to expand beyond its limited business areas and increase scalability for new businesses in the future. Lotte Foods, which was mainly focused on the domestic market, will find it easier to enter overseas markets by utilizing Lotte Confectionery's network of eight global local subsidiaries.

Immediately after the merger, Lotte Confectionery plans to integrate the overlapping ice cream divisions to strengthen market competitiveness. When Lotte Confectionery and Lotte Foods merge, they will surpass Binggrae, which owns Haitai, and reclaim the number one position in the market.

The separately operated e-commerce organizations will also be integrated and unified. First, they will consolidate their own malls to improve operational efficiency, and in the mid to long term, they plan to expand the e-commerce organization and strengthen marketing. Through online business strategy consulting and other measures, they are reviewing a dedicated logistics center, aiming to increase the online sales ratio, currently less than 10%, to over 25% by 2025.

In addition, through this merger, they plan to integrate various organizations and infrastructures such as purchasing and IT to enhance management efficiency. Furthermore, they envision strengthening brand competitiveness by building a food portfolio covering all ages and life stages, from infant formula to silver food.

This content was produced with the assistance of AI translation services.