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Case Title:

Lotte, a South Korean Confectionery Company’s European Expansion Strategies

Publication Year : 2010

Authors: Shah R, Syed A

Industry: Food, Diary and Agriculture Products

Region:Asia, Europe

Case Code: GGL0069IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
The case focuses on Lotte Confectionery, South Korea's biggest snack company's expansion strategies. In June 2008, Lotte acquired Guylian, a leading manufacturer of boxed chocolates, with the aim of expanding its reach into the European confectionery market. Through the acquisition of an established brand, Lotte aims to fill the gap of boxed chocolates in its portfolio as well as gain entry into the quality-conscious and competitively-fierce European market. The case highlights the challenges of an Asian company entering a European market.

Pedagogical Objectives:

  • To understand the dynamics of the global confectionery industry, especially the European market
  • To examine Lotte's business model as well as its position in the South Korean confectionery market
  • To analyse Lotte's acquisition of Guylian and the mutual benefits of this acquisition.

Keywords : Lotte confectionery; Guylian; Confectionery industry; Boxed chocolates; Gums and candies; Acquisition; European confectionery market; Leadership position; Sea shells; Distribution network; Praline; Market entry; European expansion; Asian company

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