Lotte-Nestlé Korea’s Cheongju factory. (Lotte-Nestlé Korea)

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Lotte Wellfood Co. and Nestlé SA announced on Monday that they will dissolve their joint venture, Lotte-Nestlé Korea, by the end of the first quarter of 2026, marking the end of a 12-year partnership.

“This decision was made after comprehensive consideration of global priorities, domestic market conditions, and the shared capabilities of both companies,” said Thomas Caso, chief executive officer of Nestlé Korea. “Until the transition is complete, both parties will focus on ensuring stable operations and managing changes effectively.”

Lotte-Nestlé Korea was established in June 2014 as a 50:50 joint venture between Lotte Group and Nestlé, the world’s largest food and beverage company.

Both Nestlé and Lotte Wellfood emphasized that employee welfare remains a priority, and they will implement necessary support measures throughout the process.

Production facilities and other assets will be sold, with proceeds distributed according to each party’s stake. The two companies plan to finalize the transition process over the next year.

Lotte Wellfood clarified that the decision is unrelated to Lotte Group’s recent asset sales and business restructuring, emphasizing that the separation had been under discussion for years.

“The decision to part ways is due to differences in business strategies, and the discussions about ending the joint venture have been ongoing for several years,” said an official from Lotte. “This is separate from Lotte Group’s broader efforts to streamline non-core businesses.”

Lotte-Nestlé Korea has been responsible for producing and distributing Nestlé’s Nescafé instant coffee, coffee mixes, chocolate and fruit-flavored powdered beverages, and pet food in Korea.

Meanwhile, Nestlé Korea, the Swiss company’s wholly owned subsidiary, will continue operating its core brands, including Nescafé Dolce Gusto, Nespresso, Starbucks at Home, Blue Bottle, and KitKat.

Nestlé Korea will also take over parts of Lotte-Nestlé Korea’s business operations.

For instance, the company is launching an independent pet care division, Nestlé Purina PetCare, on April 1.

The transfer of pet food sales rights will be completed this month, with related employees transitioning to Nestlé Korea.