Lotte Wellfood, formerly Lotte Confectionery, has announced its strategic growth plans for India. It has established a new line in Haryana to produce its confectionery product, Lotte Pepero.
This marks Lotte Wellfood’s first exclusive line set up outside of Korea for Lotte Pepero. To be operational by mid-2025, the new facility will be strategically located alongside their existing state-of-the-art factory in Haryana, which is currently dedicated to the production of Lotte Choco Pie. With a committed investment of over Rs. 200 crores, this modern line will accelerate Lotte Pepero reaching Indian consumers.
Equipped with automated production lines, this move the company explains not only streamlines logistical operations but also underscores Lotte Wellfood’s dedication to staying responsive to the dynamic tastes of consumers worldwide.
The new facility, while catering to global export demands, will also support in bringing Original and Crunky Pepero products to the Indian market. Lotte Wellfood plans to focus on establishing Lotte Pepero as a premium brand in the local market, following what it says is the success of Lotte Choco Pie. The company will initially, target the premium market represented by large retail formats and e-commerce channel, expanding to smaller traditional channels in the future.
Lotte Wellfood CEO Lee Chang-yeop said, “We plan to actively expand our investments in the Indian market, which holds substantial growth potential. Following Lotte Choco Pie success in India, introducing Lotte Pepero will enhance Lotte’s brand strength and expand sales in the Indian market. We are also actively pursuing initiatives to create locally tailored Lotte Pepero products that resonate with the regional food culture and cater to the climate-specific dining preferences.
“This investment aims to strengthen the position of Lotte brands in India, a country with a confectionery market worth approximately 27000 crores. Lotte India’s sales performance reached Rs. 654 Crore in 2023, and we are targeting more than 20 per cent growth in 2024.”
Chocolate the company explains holds a high preference among Indian consumers, almost becoming one of their essential shopping items. As part of research conducted, Lotte Pepero claims to have received positive feedback from 90 per cent of Indian consumers in the “Concept and its Taste”. There was also a favorable response to its product differentiation i.e. chocolate stick snacks.
Havmor ice cream which is a subsidiary of Lotte Wellfood’s has committed to a capital investment of Rs. 436 crores in a new upcoming production facility in Maharashtra. The production is set to start from Q2 this year in Talegaon, Pune. It is Lotte Wellfood’s first new factory since its acquisition and is made on the basis of the transfer of technology and advanced manufacturing processes from Lotte Korea.
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