CJ CheilJedang spinning off its health and wellness business
CJ CheilJedang is spinning off its health and wellness business next year, the food company announced on Tuesday.
The owner of the Bibigo food brand said on Tuesday that the new entity will be named CJ Wellcare. It will be spun off on Jan. 1 next year, and will be 100 percent owned by CJ CheilJedang.
The health functional food business that was part of its mother company’s food division will be taken over by CJ Wellcare.
CJ CheilJedang’s health functional food business currently offers lactobacillus and ginseng products.
The new company “lead the plant-based premium lactobacillus market” and provide customized health supplements in the long terms through partnerships with numerous companies, CJ CheilJedang said in a statement.
“Trend of the health functional food market is changing rapidly, but CJ CheilJedang is too big a company to respond to that change at that speed,” said Jeong Da-woon, a spokesperson for CJ CheilJedang. “We hope to accelerate the decision making process and to secure investment by spinning off the business.”
CJ CheilJedang’s health care business is in a nascent stage, so far having generated around 100 billion won ($89 million) in sales out of a total of 19.34 trillion won as of the third quarter, according to Jeong.
The to-be-spun-off entity will “continuously offer futuristic products based on CJ’s know-how on health business and technologies.”
CJ CheilJedang hopes CJ Wellcare will become a top-tier health functional food provider by 2025.
BY JIN MIN-JI [firstname.lastname@example.org]
with the Korea JoongAng Daily
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