Coca-Cola Beverage Co., a subsidiary of LG Household & Health Care, conducted a voluntary retirement program late last year, marking the second such initiative since LG H&H acquired the company in 2007. The move comes as the beverage division posted its first quarterly operating loss in nearly two decades under LG ownership.
According to industry sources on Monday, Coca-Cola Beverage accepted voluntary retirement applications from November 20 to December 1 last year and notified applicants of results on December 2. The program targeted employees born before 1980 in sales, logistics, and staff departments including human resources and strategic planning, while production workers were excluded. This marks the first time staff positions were included in such a program.
LG H&H reported that its Refresh division, which oversees beverage operations, recorded an operating loss of 9.9 billion won ($6.8 million) in the fourth quarter of last year. Revenue for the period fell 6.7% year-over-year to 383.5 billion won from 411 billion won. This represents the first quarterly loss since the Coca-Cola acquisition.
Coca-Cola Beverage previously conducted a voluntary retirement program in November 2024, targeting older employees born before 1971 in sales and logistics departments. The company offered severance packages ranging from five months to two years of base salary depending on age, along with tuition support for employees' children for up to four semesters.
Coca-Cola Beverage imports concentrate from Coca-Cola headquarters in the United States and handles domestic manufacturing and distribution. LG H&H holds a 90% stake while a Coca-Cola affiliate owns approximately 10%. LG H&H operates Coca-Cola's domestic manufacturing, sales, and distribution business exclusively.
Industry observers attribute the weak performance to slowing carbonated beverage consumption and the growing low-sugar trend. An LG H&H spokesperson said, "We continue to face difficulties due to changes in the distribution environment, including the contraction of offline channels," adding that the program aims "to streamline the workforce structure in the Refresh division."