LOTTE Nestlé Korea will cease operations in March next year.
On the 17th, Nestlé and LOTTE Wellfood agreed to wrap up the operations of LOTTE Nestlé Korea by the end of the first quarter next year.
LOTTE Nestlé Korea is a joint venture established in 2014 through a 50% equity investment each by Nestlé and the LOTTE Group (LOTTE Food). It has produced, distributed, and sold Nestlé's coffee brand Nescafé, as well as chocolate powdered drinks, fruit powdered drinks, coffee creamers, and pet care products in Korea. It also operated Nestlé's Cheongju factory. Nestlé and LOTTE Wellfood plan to carry out necessary support measures, prioritizing the employees of the joint venture.
Ahead of the termination of the joint venture, Nestlé Korea will commence the 'Nestlé Purina Petcare' business starting next month. Nestlé Purina Petcare is the institutional sector currently operated by LOTTE Nestlé Korea, and the business rights will be transferred to Nestlé Korea within this month.
Thomas Caso, CEO of Nestlé Korea, noted, “This is a decision made after considering various factors, including global priorities, domestic market conditions, and the shared capabilities of both companies,” and added, “Both parties will strive for stable operations and change management until the joint venture ends.”