LG Household & Health Care (LG H&H) has reported its first quarterly operating loss in its beverage division in nearly two decades since acquiring the local Coca-Cola bottling business. This downturn has led to workforce reductions within the unit.
The company announced that its refreshment segment, encompassing beverage subsidiaries like Coca-Cola Beverage Company and Haitai HTB, experienced an operating loss of 9.9 billion won ($6.7 million) during the fourth quarter of 2025.
This marks the first loss of this kind since LG H&H’s acquisition of Coca-Cola Korea Bottling Co. in 2007, when they began manufacturing and distributing Coca-Cola products in Korea. For the entirety of 2025, the refreshment segment generated revenue of 1.77 trillion won and an operating profit of 142 billion won, representing decreases of 2.9 percent and 15.5 percent, respectively, compared to the previous year.
Coca-Cola Beverage Company initiated an early retirement program in late 2025, targeting employees in sales, logistics, and corporate staff functions.
“This initiative aims to enhance the efficiency of the refreshment division’s workforce,” stated a company official. “We are continuously navigating challenges stemming from the evolving distribution landscape.”
Industry experts suggest that the beverage unit has faced pressure due to shifting consumer preferences and changes in retail channels. Younger consumers are increasingly opting for low-sugar or functional beverages over traditional sugary sodas.
In response to the weakened performance, LG H&H is evaluating its beverage portfolio, including the potential sale of Haitai HTB, which it acquired in 2010 from Asahi Breweries and other shareholders.
While the potential transaction garnered interest from industry stakeholders and financial investors, the company reports that negotiations are not currently in progress. They have affirmed that the Coca-Cola operations have never been considered for sale.
Concurrently, LG H&H is undergoing a company-wide restructuring amid a significant decline in earnings. In 2025, LG H&H reported revenue of 6.36 trillion won, a decrease of 6.7 percent, while operating profit plummeted by 62.8 percent to 170.7 billion won. The beauty division reported an annual operating loss of 97.6 billion won.
