Snack Manufacturer Lotte Increases Choco Pie Snacks Production in Indonesia

March 2023

Lotte plans to build a new facility within its existing factory in Indonesia, which is expected to increase the production capacity of its flagship snack, Choco Pie, to JPY 20 billion (USD 147 million) in value. The construction of the plant is set to begin in 2023, and it is expected to start operating after 2025. The investment in the factory is reported to be in the billions of yen. Since 1993, Lotte has been operating in Indonesia, and it has been producing Choco Pie there since 2014. The snacks manufactured in the country are exported to Vietnam and Thailand as well.

To suit local preferences, Lotte has modified Choco Pie by replacing the original Japanese cream filling with marshmallows. Although it is comparatively expensive in Indonesia, priced at IDR 2,000 (USD 0.13), Choco Pie’s popularity is so high that even at full capacity, production cannot meet the demand, as stated by Lotte President Eiichi Gochou.

Lotte is also planning to establish a biscuit production facility worth around JPY 3 billion in Vietnam, which is scheduled to be completed this year. Thanks to the increasing sales in the area, the company is expecting to achieve a 20% overseas sales ratio target by fiscal 2023, two years earlier than planned. Moreover, Lotte aims to increase overseas sales to 100 billion yen by fiscal 2028, which is around 70% higher than the projections for fiscal 2023.

(Source: Nikkei Asia)

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