Lotte Group’s confectionery-making unit said Wednesday that it had acquired a bakery company in Myanmar to facilitate its penetration into the Southeast Asian market.

According to the company, Lotte Confectionery will own an 80 percent stake in L&M Mayson Company for 76.9 billion won ($69 million).

Established in 1996, L&M Mayson is the largest bread-making company in Myanmar with annual sales of approximately 35 billion won. It runs three manufacturing plants, 12 sales branches and 10 logistics centers in the country.

According to Lotte Confectionery, Myanmar is the third Southeast Asian market that it has tapped into, since its 2007 entrance to Vietnam and 2011 to Singapore. 

The Southeast Asian confectionery and bakery market is a major emerging market eyed by South Korean companies, which believe it has strong potential because of its relatively young population: about 70 percent of people there are under 40. 

Lotte Confectionery said it plans to expand the business and increase brand awareness in Southeast Asia through L&M Mayson.

(ddd@heraldcorp.com)