South Korea’s Lotte Chilsung Beverage Co. will begin selling beverages in Pakistan after forming a joint venture with a local bottling company.
Lotte Chilsung Beverage said on Monday that it signed a JV agreement with Pakistan’s Akhtar Group, which owns local beverage maker Riaz Bottlers. The Korean company will pay 53.3 billion won ($49.5 million) for a 52 percent stake in the JV.
The JV will strike a bottling deal with PepsiCo Inc. to supply Pepsi brands via Riaz Bottlers’ sales network.
Established in August 1976, Riaz Bottlers is headquartered in Pakistan’s major transportation and business hub of Lahore, the capital of northeastern Punjab Province, and has been bottling and supplying drinks of PepsiCo.
Pakistan would be the fourth Asian market for Lotte Chilsung Beverage after China, the Philippines and Myanmar.
Lotte Chilsung Beverage Co. Ltd. manufactures and sells beverages in South Korea. The company offers carbonated beverages, juices, coffee, tea, and water drinks. It also exports its products. The company was founded in 1950 and is based in Seoul, South Korea.