Placing Bridgehead for Expansion into Southeast Asian Market
Lotte Confectionery acquired the No. 1 confectionery company in Myanmar. Myanmar is a place of strategic importance in the Southeast Asian market and is expected to become a bridgehead for Lotte's expansion into the Southeast Asian region in the long term.
Lotte Confectionery announced on Jan. 31 that it completed all the process of the acquisition that it had pushed forward with since last October by holding a ceremony for the acquisition of local confectionery company Mason at Lotte Hotel in Yangon, Myanmar.
Lotte Confectionery took over Mason by acquiring an 80-percent stake in the company. The acquisition price was about 77 billion won. Mason is the No. 1 confectionery company in Myanmar that produces biscuits, pies (cakes), and mass-produced bread. The company was established in 1996 and now operates three factories, 12 sales offices, 10 distribution centers with a sales network spanning throughout Myanmar.
Myanmar is a key economic hub in Southeast Asia between China and India with an annual economic growth rate of over seven percent. The country is also a land of new opportunities for food companies as the market is recording the growth of people’s purchasing power thanks to economic development and has a population of 52 million.
In Myanmar, Lotte GRS has been expanding Lotteria stores since 2013 and Lotte Chilsung Beverage set up a joint ventures with a Myanmar beverage maker in 2014.