Lotte Wellfood considering sale of $69M baked goods business
Published: 20 Jan. 2025, 15:46
Updated: 20 Jan. 2025, 19:38
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- KIM JU-YEON
- [email protected]
![Food and beverage company Lotte Wellfood is weighing its options for its baked goods business that encompasses the pictured Kirin bread brand, which is sold at convenience stores and supermarkets, as well as business-to-business transactions such as supplying bread to burger and sandwich chains and company-owned cafeterias. [LOTTE WELLFOOD]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/710d6073-5f2a-4f35-9fc2-14ec42044de5.jpg)
Food and beverage company Lotte Wellfood is weighing its options for its baked goods business that encompasses the pictured Kirin bread brand, which is sold at convenience stores and supermarkets, as well as business-to-business transactions such as supplying bread to burger and sandwich chains and company-owned cafeterias. [LOTTE WELLFOOD]
Food and beverage (F&B) company Lotte Wellfood is weighing its options for its baked goods business, including a sale of the division estimated to be worth around 100 billion won ($69 million).
The F&B company will separate and sell the entirety of its baked goods business, the Seoul Economic Daily reported Sunday. This includes the company’s production facilities, such as its plants in Suwon, Gyeonggi, Busan and Jeungpyeong County, North Chungcheong, as well as its logistics network.
Lotte’s baked goods business encompasses the Kirin brand, which is sold at convenience stores and supermarkets, as well as business-to-business transactions such as supplying bread to burger and sandwich chains and company-owned cafeterias.
Lotte Wellfood has sent teaser letters outlining the potential acquisition deal and a business overview, with KB Securities as the financial adviser, to interested companies since last year, the newspaper reported.
Lotte Wellfood said in an electronic disclosure on Monday that “the company was reviewing various options regarding its baked goods business, but nothing has been finalized yet.”
The company said it would file another report regarding the potential sale when specific plans have been made, or within a month.
Lotte Wellfood was launched in 2022 through the merger of Lotte subsidiaries Lotte Confectionary and Lotte Foods. As Korea’s largest chocolate manufacturer, it is known for its Lotte Choco Pie and Peppero products as well as other confectionaries, dairy products and processed meats.
The merger made some of the firm’s production facilities redundant, leading the company to float the sale of its Jeungpyeong plant, according to the Seoul Economic Daily.
The company will reportedly use the funds secured through the baked goods business sale in future projects. Lotte Wellfood plans to invest 222 billion won to build an ice cream production plant in Cheonan by next year and has been adding overseas production facilities, such as in India, as demand for its confectionaries grows in foreign markets.
BY KIM JU-YEON [[email protected]]
with the Korea JoongAng Daily
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