Korean consumers embrace 'ugly' produce

Economy

Published: 28 Oct. 2023, 07:00

Korean consumers embrace 'ugly' produce

"Ugly" cucumbers on display at a Seoul Lotte Mart in July. They were sold at half price due to aesthetic regulations, according to Lotte Mart. [YONHAP]

“Ugly” fruit and vegetables have never been more attractive in Korea.

Customers are flocking to purchase the cheaper produce amid increasing consumer prices.

Often referred to as motnani produce — meaning ugly in Korean — they are agricultural products that have the same taste, nutrients, and health safety grade, but are not up to regulatory standards due to aesthetic reasons such as uneven size, shape, and scratches.

Businesses are taking the opportunity to match the demand for the secondary fruits and vegetables, and the competitive prices are attracting consumers both on and offline.

″Monnani″ brand food products made using end-of-season peppers, and kimchi made using ″ugly″ cabbage. [CHUNGCHEONGBUK-DO]

North Chungcheong’s regional produce and processed food brand “Monnani” is expanding their ugly product line to make processed goods out of a variety of produce, including apples, watermelon, potatoes and peppers, as announced by North Chungcheong Gov. Kim Young-hwan on Monday.

“As in the case with cabbages, we will reuse agricultural products that are being discarded due to a lack of workers,” said the governor, referring to produce that is discolored or not uniform in size due to being harvested late. “We harvested end-of-season peppers, of which only 30 to 40 percent was utilized [previously], to develop what's called a ‘three pepper brothers’ product line consisting of red pepper seasoning, pickled peppers, and pepper chips.”

This follows their success with the “Monnani Kimchi,” translated as ugly kimchi, which uses all local ingredients including imperfect napa cabbage as its primary ingredient. The kimchi brand was first developed last year when an influx of frozen cabbage from mountainous regions became available, as cabbage prices sharply decreased due to increased supply.

The kimchi manufacturing business would purchase cabbage for lower than the market price and sell the finished product at a lower profit margin. Reduction in costs led to the kimchi being sold at a price 20 to 30 percent lower than other domestic kimchi brands in the market.

Imperfect cabbage, used to make ″Monnani Kimchi," is ready for harvesting in a field at Guesan, North Chungcheong. The picture was taken on Dec. 12, 2022 [JOONGANG PHOTO]

“Two hundred and twenty-six tons, or 760 million won ($566,173) worth of Monnani Kimchi has been sold to restaurants, large supermarkets, and online stores,” said Oh Se-dong, director of the Love for Company and Countryside Movement, the distributor of the brand. Some 7.7 tons of Monnani Kimchi were exported to eight countries including the U.S., Australia, and Vietnam.

The North Chungcheong brand also sold over 90 tons of ugly fresh produce, comprised of 54.5 tons of apples, 16 tons of watermelons, 2.5 tons of potatoes, 12.4 tons of cucumbers, and 4 tons of shine muscat grapes from February to September. Having finished a successful first run, the brand will now expand to other produce, such as the previously neglected paprika leaves, and develop more processed goods using the agricultural goods.

Gov. Kim promised to “increase support for the production, processing, and facilities for the sale of ugly agricultural goods, and continuously expand distribution channels.”

“Ugly produce couldn’t be sold before only because it lacked an outlet, but they are similar in taste and quality to regular products,” he said.

Retail businesses dealing with ugly produce have found success among customers this year, backing up the governor’s words.

Sales for large supermarket chain Lotte Mart’s “win-win vegetables and fruit” section for imperfect produce from Sept. 1 to 21 increased by over 20 percent this year compared to sales from the same period last year. For Homeplus, sales for the 20 to 30 percent cheaper imperfect carrots and sweet potatoes rose by 74 percent and 71 percent, respectively. Convenience store chain CU launched the “fresh win-win” imperfect vegetable line in May, and in three months, has sold over 10 tons of produce. Misshapen shine muscat grapes were released by CU last month at a price 30 to 40 percent cheaper than regular products.

The “Motnany Market” app, which sells Grade B produce for prices 20 to 30 percent cheaper than ordinary produce, has seen its sales jump eightfold since its launch in January this year, according to the company's sales forecast in September. More than 60,000 users have downloaded the app.

“The fast growth can be attributed to the combination of interest in motnani agricultural products along with higher consumer prices,” said Kim Young-min, CEO of Motnany Market.

BY CHOI JONG-KWON, CHOI EUN-KYUNG, KIM JU-YEON [kim.juyeon2@joongang.co.kr]