South Korea: Nestle and Lotte Group to end Lotte-Nestle Korea joint venture

Nestle, the food and drink multinational, and South Korean food group Lotte Wellfood have agreed to end their Lotte-Nestle Korea joint venture by the first quarter of 2026.

Initiated in June 2014, the Lotte-Nestle Korea partnership operates as a 50-50 joint venture, manufacturing and distributing Nescafe instant coffee, chocolate powder drinks, fruit powder drinks, pet food and culinary products across South Korea.

Commenting on the move, Nestle Korea CEO Thomas Caso said: “Nestle and Lotte made this decision after comprehensively considering various factors such as overall global priorities, domestic market conditions, and the two companies’ shared capabilities. Both companies will strive to ensure stable operation and change management until the joint venture ends”.

Nestle is yet to disclose its future plans for operations in South Korea, however, Nestle Korea reportedly intends to acquire Nestle Purina PetCare from Lotte-Nestle Korea next month, with further business lines set to transfer over the next year.

Source: World Coffee Portal / Inside FMCG