Daesang aims to expand U.S. presence with Lucky deal

Industry

Published: 19 Jun. 2023, 15:02 Updated: 19 Jun. 2023, 16:01

Daesang aims to expand U.S. presence with Lucky deal

Korea's leading kimchi maker, Daesang Corp. said Monday it has acquired U.S. food company Lucky Foods in a bid to expand its kimchi business in the United States.

Daesang said it acquired all of Lucky Food's shares and facilities after securing a 38 billion won ($29.7 million) fund through a paid-in capital increase.

Founded in 2000, Lucky Foods is an Asian food company based in Oregon, the United States. Its main products include Seoul Kimchi, Korean-style sauces, including Seoul Gochujang, and spring rolls. The products can be found at major distribution outlets in the U.S., according to Daesang.

Kimchi is a traditional Korean side dish normally made of fermented cabbage, salt and hot peppers, and is eaten with almost all meals.

Daesang said the takeover is expected to help the company expand its food business in the U.S., as it aims to become the Asian grocery company whose products can be found in every U.S. household by 2030.

Daesang plans to increase the number of Lucky Foods' factories to double the production capacity for Seoul Kimchi and drum up new business.

Daesang is South Korea's biggest exporter of kimchi. In 2022, South Korea exported $141 million worth of kimchi, with Daesang's Jongga Kimchi accounting for about half of those exports, according to the company.

Jongga Kimchi is exported to about 40 countries and regions around the world, including the Americas, Europe, Taiwan and Hong Kong. Last year, Daesang built a large-scale kimchi factory in Los Angeles, becoming the first South Korean company to build such a facility in the U.S.

Yonhap