Lotte Advances Into Dairy Sector As Part Of Wider Strategy To Consolidate Leading Position

South Korean conglomerate Lotte Group has acquired Pasteur Milk, the eighth largest dairy products manufacturer in the country, for KRW60bn (US$53.9mn) via its food-processing subsidiary Lotte Samkang as it looks to consolidate its presence in the domestic food and drink sector. With very modest forecast growth in liquid milk consumption expected through 2014 - BMI is forecasting only 3.7% in fluid milk consumption to 1.61mn tonnes between 2009 and 2014 - Lotte's acquisition could be perceived as a move to ride on the premiumisation wave as consumers gradually trade up to higher value dairy products, which would eventually translate into higher margins for Lotte.

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