Lotte Confectionery Co. of South Korea and the U.S. candy maker, Hershey Co., signed an $80 million venture to sell its products in China.
In the venture, both company will distribute each others’ product. Lotte Confectionery will distribute Hershey’s products in South Korea and Japan after manufacturing in its factory in Jinshan, near Shanghai, whereas Hershey will distribute Lotte Confectionery’s products in the U.S.
The Hershey’s fourth-quarter profit declined 9.9 percent after sales declined for the first time in 31/2 years, however, the company is hopeful to boost up its revenue by introducing its Reese’s Peanut Butter Cups and chocolate Kisses in China.
Lotte Confectionery will buy 51 percent stakes for $39.9 million, with Hershey taking the remainder.
As the news spread in the shares of Lotte Confectionery rose 0.3 percent.
