[Exclusive] 'Integrated' Lotte Confectionery overhauling functional food business
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By Jeon Seoin
Lotte Health1, Lotte Confectionery’s functional food brand, recently closed all of its online stores.
The decision is interpreted as part of efforts to streamline the management, following the integration of Lotte Confectionery with Lotte Foods.
Lotte Confectionery stopped running Lotte Health1’s e-commerce platforms on Aug. 12, a year after the functional food brand opened its own online shopping mall and five years after it began online sales through Naver Smart Store.
Launched in 2002, Lotte Health1 has come up with various products, such as red ginseng, nattokinase, mate and protein. However, they have failed to grow into flagship products.
As the brand has generated lower-than-expected revenue, its product lineup has diminished significantly, making Lotte Confectionery produce fewer products, including red ginseng and colostrum protein.
“Low revenue from the online stores caused their shutdowns,” a Lotte Confectionery official said. “This is part of our efforts to enhance brand competitiveness.”
After the merger with Lotte Foods last month, Lotte Confectionery has streamlined its management with the aim of reinforcing the “mega brands.”
It is therefore considered to be restructuring its unprofitable functional food business.
Lotte Confectionery CEO Lee Young-goo has been dubbed a “master of integration,” as he successfully integrated Lotte’s beverage and liquor businesses at a low cost.
*This was translated from the article originally written in Korean. For more accurate information, please refer to the original version by using the link below. In case of discrepancies between the two versions, the Korean version shall prevail.
https://biz.sbs.co.kr/article/20000077345
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