(C) KED Global
New Delhi — Lotte Choco Pie has become more than just a snack in India; it is a symbol of premium quality, served as in-flight meals on high-speed trains and found in the minibars of luxury hotels. Holding a staggering 70% market share with annual sales exceeding 85 billion KRW, Lotte Wellfood (formerly Lotte Confectionery) is being hailed as the gold standard for South Korean food and beverage companies expanding into the Indian market.
The success of Lotte India, located in the Rohtak region of Haryana, stems from a meticulous localization strategy that spans ingredients, distribution, and human resources.
The First Hurdle: The ‘Vegetarian Mark’
The most critical challenge was catering to India’s dietary culture. With approximately 40% of the population being vegetarians for religious reasons, the traditional marshmallow—made with animal-based gelatin—was a dealbreaker. After extensive R&D, Lotte succeeded in replacing gelatin with plant-based ingredients derived from seaweed, maintaining the original's signature texture while earning the essential "Vegetarian Mark."
Adapting to the Heat and the Wallet
Lotte also re-engineered its chocolate to withstand India’s scorching heat, ensuring the product maintains its shape at temperatures as high as 48°C (118°F). Furthermore, to overcome the price barrier, Lotte introduced the ‘Mono’ distribution method. By reducing the size of the snack (from 40g to 26g) and selling individual wraps instead of large boxes, they made the premium snack affordable for everyday consumers.
Empowering Local Leadership
Localization at Lotte goes beyond the product. At the Rohtak plant, the facility is managed almost entirely by Indian staff, with only one Korean expatriate on-site. "We empower Indian managers to run the factory," said Moon Young-jin, the plant manager. "Instilling a sense of ownership—that they are the ones driving Lotte India—is a core part of our strategy."
Expanding the Empire: Ice Cream and Beyond
Lotte is now applying this successful "Choco Pie Formula" to other sectors. Since acquiring 'Havmor Ice Cream' in 2017, the company has rebranded popular Korean products like 'Piggy Bar' into 'Crunchy Bar' to suit local tastes.
In February 2023, Lotte completed a massive new ice cream factory in Pune, six times larger than its previous facility. This plant serves as a strategic hub for expanding into Southern India. Chairman Shin Dong-bin, who attended the factory opening with his son, Executive Vice President Shin Yu-yeol, emphasized that the Pune plant is a "major milestone" in Lotte’s global food business.
A Vision for 1 Trillion KRW
With total revenue growing from 270 billion KRW in 2023 to 290.5 billion KRW in 2024, Lotte India has set an ambitious goal: reaching 1 trillion KRW in annual sales by 2032.
"The new factory is designed for easy expansion as Indian demand grows," said Lee Seung-min, the Pune plant manager. "For Lotte India, this is only the beginning."
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