Lotte Choco Pie (Lotte Confectionery)
Lotte Confectionery said Thursday it will invest 34 billion won ($28.5 million) in its Russian subsidiary, Lotte KF RUS, looking to scale up the local production of its popular Choco Pie chocolate cakes in the country.
The Koreans’ staple chocolate snack enjoys nation-wide popularity in Russia, as it tapped into the country’s tea culture that pairs hot beverage with biscuit-type sweets. The pie even serves as a low trans-fat breakfast meal there.
While Orion has been at the fore of the Russian Choco Pie market since its foray in 2003, raking in 105 billion won in sales last year, Lotte is aggressively chasing behind. Lotte‘s Russian arm recorded sales of 50 billion won in the same year, mainly from sales of Choco Pie produced in its factory in Obninsk, Kaluga.
The company has ambitious plans to log no less than 20 percent growth in the Russian market by augmenting its production capacity.
To further propel growth for its flagship product, Lotte recently launched a new marketing campaign that highlights its global Choco Pie slogan “Happy Moments”.
Lotte‘s overseas marketing strategy for Choco Pie stretches from Russia to India and Pakistan.
By Ahn Ju-hee (email@example.com