Penetrating Southeast Asia Market

Lotte Confectionery has acquired L&M Mayson Company Limited, a bread-making company in Myanmar.

Lotte Confectionery has acquired a bread-making company in Myanmar to accelerate penetration of the Southeast Asian market.

The company announced on October 23 that it has acquired a 80% stake in L&M Mayson Company Limited for 76.9 billion won (US$69 million).

Established in 1996, L&M Mayson is running three plants, 12 sales branches and 10 logistics centers in Myanmar, producing biscuits, pies and bread. It is the largest bread-making company in Myanmar with annual sales of approximately 35 billion won.

Myanmar has become the third Southeast Asian country in which Lotte Confectionery does business. The company entered Vietnam and Singapore in 2007 and 2011, respectively. The Southeast Asian confectionery and bakery market has huge growth potential in that people in their 30s or younger account for 70% of the entire population.

Myanmar, which has a population of about 54 million, is expected to show an annual economic growth of 6% to 8% henceforward with foreign investment on the increase and infrastructure establishment accelerating. Lotte Confectionery is planning to expand its business and increase its brand awareness in Southeast Asia via Mayson.

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