S KOREA: Lotte Group confirms China plans

By just-drinks.com editorial team | 19 June 2007

Lotte Group has released further details of its plans to build a unit in China.

The South Korean conglomerate, which said late last year that it intends to set up a holding company in China to gain a presence in the country's beverage and confectionery markets, said today (19 June) that it will spend around US$30m on creating the subsidiary.

The new unit will be funded by Lotte Japan - with 34% of the total investment - Lotte Confectionary Group (33%) and Lotte Chilsung Beverage Co (also 33%), the parent company said.

Lotte Group said it is targeting sales of around CNY3.75bn (US$492.2m) in the country by 2011, with sales of CNY8.33bn expected as of 2016.

Late last year, Lotte Chilsung snapped up a Chinese beverage maker in Henan Province for US$23m and renamed the company Lotte Aodeli Beverage Co. Lotte Chilsung produces alcoholic and non-alcoholic beverages, including fruit juices, teas and soy milk.

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