CJ Cheiljedang is accelerating efforts to expand the new K-food global market scope by actualizing the entry of untapped markets on top of the existing markets, including the United States, Europe and Japan.
CJ Cheiljedang President Choi Eun-seok said, “Last year, CJ Cheiljedang laid a foundation to expand the global business turf, and this year will be the first year of securing growth momentum based on CJ Group’s four growth engines: C.P.W.S (Culture, Platform, Wellness, Sustainability).”
President Choi stressed the need to explore untapped country markets and realize innovative growth by prioritizing global strategic products (GSPs): mandu, processed rice, chicken, K-sauce, kimchi, laver and roll.
The company has elevated an existing operation in Japan to headquarters-level, joining three headquarters in Korea, the United States, and Europe/Asia-Pacific.
As for the U.S. market, CJ Cheiljedang plans to ramp up the standing of the brand bibigo by expanding the supply of main stay products.
It aims to become the No. 1 pizza maker by strengthening Schwan’s Company’s premium product lines-up.
In the case of Europe, in which the company established a corporate entity in UK last year, CJ Cheiljedang plans to expand the mandu presence with a focus on Germany and UK and ramp up the roster of differentiated products, such as Asian menu portfolio and laver snacks.
The company is trying to build up the Western European market by 2025 before expanding its business to the whole of Europe.
CJ Cheiljedang’s Kizuna plant in Vietnam, a production center of the Asian-Pacific and European regions, plans to ramp up its competitiveness by expanding the wrapped food portfolio encompassing mainstay products, such as spring rolls, mandu and dimsum.
CJ Cheiljedang plans to rev up the standing of Micho, the fruit fermented vinegar brand whose sales in Japan soared to about 100 billion won while nurturing home-made replacements (HMR), such as bibigo mandu.
The brand “Micho”, which dominated the Japanese market with a dilution format, plans to release ready-to-drink products with diverse tastes and formats and expand their distribution channels.
The company plans to enlarge K-food-oriented businesses, such as health concept ready-made meals in Japan.
CJ Cheiljedang plans to expand the K-food business turf around the world.
To this end, the company decided to place priority to entering Canada in the North American region, and in the Asia-Pacific region, Australia, Thailand, Indonesia and Malaysia.
CJ Cheiljedang plans to adopt a two-track format: local production and country-to-country (C2C) production & export.
The C2C format means producing items at global production centers and exporting them at their neighboring countries.
As for North America, CJ Cheiljedang plans to explore the Canadian market by cashing in on its U.S. business infrastructure.
The company plans to make inroads into mainstream segments by making the most of Asian foods, such as mandu and processed rice, while securing production centers on a gradual stage.
CJ Cheiljedang plans to secure a mandu production center in Australia in which products made of meats cannot be exported while opening outlets at large-sized distribution channels.
CJ Cheiljedang plans to expand the business turf in Thailand in an aggressive fashion by making the most of geological proximity with Vietnam with a production center.
The company plans to prioritize wrapped food items and hansik chicken and fresh kimchi, tailored to meet local tastes in Thailand, one of countries with many K-culture aficionados.
In particular, the company plans to raise the standing of the brand bibigo by utilizing K-content, such as KCON and MAMA hallyu festivals.
CJ Cheiljedang plans to establish a “K-halal advance post” in the Indonesia/Malaysia region to secure local production capabilities and cover the global halal market, including the Middle East.
The company saw the global food business chalk up 3,775.4 billion won in the first nine months of last year, a 19.4 percent year-on-year surge over the same period of the previous year.
The global food business segment logged 227 billion won in operating profit, a 38.8 percent year-on-year jump. It accounted for 46 percent of the company’s sales in the whole food business.
A CJ Cheiljedang official said CJ Cheiljedang was committed to making the prominence of K-food known to the world, based on CJ Group Chairman Lee Jay-hyun’s tenet of globalizing Korean cuisine culture.