Lotte Chilsung Gets Aggressive in Overseas Operation
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Lotte Chilsung Gets Aggressive in Overseas Operation
Beverage company clinches 52 percent share in Lotte Akhtar Beverage in Pakistan from Riaz Bottlers for 52 bln won, adding to its operations in Myanmar, China and Philppines

26(Fri), Oct, 2018





A slew of foreign beverages that Lotte Chilsung produces at its plant for foreign beverage makers for domestic market in Korea. (Photo: Lotte Chilsung)



Lotte Chilsung Beverage set up a local subsidiary in Pakistan to launch its plan to explore the beverage market there recently by investing 58 billion won. The Korean company got a 52 percent share in the joint venture beverage drink company, ¡°Lotte Akhtar Beverage,¡± with Riaz Bottlers.


Its plants are located in the Lahore region in Pakistan, the company said recently.
Akhtar group bottles beverages with the name of Riaz Bottlers and it will receive $49.5 million in a bid from Lotte Chilsung Beverage to hold stakes of 52 percent in the joint venture.


Riaz bottlers have their office in Lahore and are operating since 1976. Lahore is famous for hosting market giants with headquarters managing activities country-wide. Riaz bottlers were in business with PepsiCo.


Lotte Chilsung Beverage Company is already operating in Myanmar, Philippines and China. Pakistan will count as their fourth destination among Asian countries.


The joint venture will also subsequently be a deal with PepsiCo from the South Korean company. They will supply brands of Pepsi with support from Riaz bottlers.


Founded in 1950, with office in Seoul, South Korea. Lotte Chilsung Beverage has a prosperous history of making and selling beverages. They offer long range of products that include, Tea, Coffee, carbonated drinks, juices etc. the products are also exported due to their international demand and goodwill.


With its newly built greenfield brewery and the market launch of a fresh beer brand, the South-Korean beverage producer Lotte Chilsung Beverage has broken up the existing beer duopoly in this country. Since the beginning of 2014, the watchword has been: ¡°Make way for the new ¡®Kloud¡¯ brand!¡±


Ever since the Chilsung Cider lemon/lime soft drink was launched in 1950, the subsidiary Lotte Chilsung Beverage has evolved into one of Asia¡¯s biggest beverage producers in the CSD, juice, water, coffee, tea and spirits segments, in the CSD segment not least thanks to its role as the Pepsi-Cola licensee for Korea. Beer had hitherto been absent from the portfolio. South Korea¡¯s beer market is currently dominated by a duopoly of Oriental Brewery and HiteJinro.


Both of these can look back on a checkered history, and an abundance of interconnections.
In mid-October 2013, the first brew was produced at the new facility. Lotte had built the new brewery in a newly designated industrial estate in Chungju, a city in central South Korea with a population of 200,000.


Another of the Lotte Group¡¯s subsidiaries called Lotte Engineering & Construction acted as general contractor for the construction work. Lotte ordered the entire process technology from Krones.


While the brewhouse has already been dimensioned for an annual capacity of one million hectolitres, the cold section, with the fermentation and storage cellars, has for the time being been equipped only with tanks for a capability of 500,000 hectolitres.


The three filling lines, for cans (30,000 cans per hour), returnable glass bottles (36,000 bottles an hour) and kegs (90 kegs per hour), were configured by Lotte Chilsung Beverage itself with kit from local and European manufacturers.


This also includes a whole series of Krones machines, like a Lavatec D5 double-end bottle washer, a Topmatic labeller with a Checkmat label-position monitor and a Contipac packer.


Two of the filling lines have also already been dimensioned for an annual filling capacity of one million hectolitres, it¡¯s just the speed of the kegging line that still needs to be doubled, to 180 kegs per hour.




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