Nestlé’s Seoul – based subsidiary has declared that the company will terminate its joint venture with the Korean conglomerate, Lotte Group, by the first quarter of 2026.
Established in June 2014, the Lotte – Nestlé Korea partnership was engaged in the manufacturing and distribution of Nescafé instant coffee products, pet – food, and culinary items.
Thomas Caso, the CEO of Nestlé Korea, stated in an official release, “Nestlé and Lotte have jointly reached this decision after thoroughly evaluating multiple factors, encompassing our global strategic priorities, along with the domestic market situation and our combined capabilities to succeed.”
A Lotte Group official commented, “We are parting ways with Nestlé Korea due to a misalignment in our business strategies. The conclusion of this joint venture has been in the works for several years.”
In 2023, Lotte – Nestlé Korea reported an annual net loss of ₩10.1 billion ($7.3 million). This was a result of intense competition from domestic food companies such as Namyang Dairy and Dongsuh Foods. Dongsuh Foods, in particular, distributes Maxim T.O.P and Maxwell House ready – to – drink (RTD) products in South Korea.
Although the food and beverage behemoth has not revealed its plans for Nescafé operations, it is probable that these product ranges will be transferred to Nestlé Korea. Nestlé Korea already oversees Nestlé’s Nespresso, Starbucks at Home, and Blue Bottle packaged coffee brands in this East Asian nation.
Nestlé Korea has already affirmed its plan to take over Nestlé Purina PetCare from Lotte – Nestlé Korea in April 2025. Further business line transfers are anticipated within the next 12 months.
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