Jan. 29, 2007 (China Knowledge) – U.S. chocolate group Hershey Co. and South Korean Lotte Confectionery Co. will set up an US$80 million joint venture in Hong Kong to make candies for the Chinese market, said Lotte on Monday.

Lotte said it would own 51% of the joint venture, with Hershey owning the remaining stake.

Hershey’s announcement of the joint venture on late Sunday added that the agreement is part of a strategic alliance that allows the two companies to explore opportunities for marketing and distribution in the U.S. and Asia. Hershey's Kisses, Reese's peanut butter cups and other products would be able expand into a potentially huge market, as costs and competition in the U.S. increases.