FDBusiness.com

Tokyo-based Lotte Group is reported to be investing in the region of Eur200m to expand and diversify its Wedel confectionery business in Poland. The expansion programme entails the construction of five new factories, including an initial investment of Eur70m.

Lotte Group acquired the Wedel branded chocolate and sugar confectionery operations in Poland last June from Kraft Foods for an undisclosed sum. The deal marked Lotte’s entry into the European food market. The sale followed the European Commission’s decision to approve Kraft Foods’ acquisition of Cadbury conditional on the disposal of the Cadbury Wedel business in Poland and the Cadbury chocolate confectionery and soft-cake business in Romania.

Lotte Group is a multinational conglomerate with annual sales of Yen3,547b ($40b). Founded in 1948 as a chewing gum company, it currently operates in a variety of sectors, including food and confectionery, retail, travel and tourism, industrial chemicals and construction, and finance. As the original business, confectionery is at the core of the Lotte Group’s operations.

Lotte Group’s confectionery portfolio includes many well-known Asian brands, such as Xylitol, Koala March and Ghana. Lotte Group is the largest chewing gum manufacturer in Asia and third largest in the world.