Lotte Confectionery, a subsidiary of South Korean food conglomerate Lotte Group, has opened its first Russian food plant in Obninsk city, 102 km southwest of Moscow.

The site will manufacture Lotte’s signature Choco Pie confectionery to supply Moscow and the Ural-Siberian area, said a Lotte spokesman. 

“In the future, it will also make Pepero chocolate chips, Kancho cookies and chewing gum Xylitol,” the spokesman said. He added that Lotte-branded sweets sold in Russia so far are generally exported from South Korea and China, with Choco Pie, Fitness biscuits and Pepero chocolate chips most popular. 

Costing US$80m, the plant is expected to generate annual sales of KRW30bn (US$25.8m).

Lotte first entered the Russian market through advertising – sponsoring the Russian athletes at the 24th Seoul Olympics in 1988. “Now Russia, with a Lotte department store, hotel, and confectionary plant is at the centre of our global business,” said Lotte’s vice chairman Shin Dong Bin at the plant’s opening ceremony.

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