LOTTE WELLFOOD, a subsidiary of the LOTTE Group, is considering separating and fully selling its institutional sector for baking.
According to industry sources on the 20th, LOTTE WELLFOOD has been distributing an investment guide detailing its corporate status to major corporations since the end of last year to sell its institutional sector for baking. The sale targets include its baking production facilities in Jeungpyeong, Busan, and Suwon, with a desired sale price reported to be in the 100 billion won range.
LOTTE WELLFOOD was launched in 2022 as a merger of LOTTE Confectionery and LOTTE Food. It primarily produces confectionery and ice cream products, and its institutional sector for baking supplies convenience stores and large supermarkets under the 'Kirin' brand.
Following the merger of LOTTE Confectionery and LOTTE Food, there was an issue with overlapping production facilities. In response, LOTTE WELLFOOD has been working to sell the Jeungpyeong factory as part of its efficiency measures.
Last July, LOTTE WELLFOOD selected Shin Ramyeonghwa as its preferred negotiation partner, but the deal fell through at the last minute, and it is reported that the company turned to the option of fully selling its institutional sector for baking.
LOTTE WELLFOOD plans to invest the funds secured from this sale into future projects. The company has also established a strategy to consolidate its ice cream and meat processing factories to enhance production efficiency. Additionally, LOTTE WELLFOOD plans to invest 222 billion won to expand its Cheonan ice cream factory by next year.