Harvard Business School chooses CJ for K-food globalization case study

K-pop fans visit CJ CheilJedang's bibigo Food Street during KCON 2022 LA held from Aug. 19 through 21, 2022. [CJ CHEILJEDANG]

Harvard Business School (HBS) has chosen the globalization of K-food as a case study topic, referencing Korea's largest food company, CJ CheilJedang, in the study.

"The globalization efforts and achievements of [our] food business unit, CJ Foods, have been selected by Harvard Business School as a case study for its lectures," CJ CheilJedang said. "This is the first time the global top business school has ever selected a Korean food company for its case study discussions."

The case study, initially presented in the HBS Agribusiness Seminar last Wednesday, is expected to be integrated into HBS's curriculum and utilized as teaching material for business management classes in various international business schools, the company added.

Recognizing CJ Foods' accomplishments beyond Korea, especially its market leadership in the United States with products like mandu (Korean dumplings) and frozen pizza, Harvard's faculty acknowledges the company's K-culture marketing strategy.

The strategy leverages the global popularity of K-pop, introducing Hallyu to the U.S. and subsequently expanding into the Korean food market.

"It was August 20, 2023. On the other side of the globe, [at] KCON, an annual Korean pop culture festival organized by CJ ENM ... around 140,000 fans from across the world immersed themselves in meet-and-greets, concerts, and dances to celebrate their K-pop idols," the study said.

"Amidst the fervor of the events, CJ Foods often showcased its products and attracted people to line up as the aroma of mandu filled the air. The convergence of KCON's vibrancy and CJ Foods' products encapsulated the essence of the K-wave's expansive influence."

The case study covers the successful integration of Schwan's Company and CJ Foods. It details the strategic maneuvers that led to an increase in Schwan's Company sales from $2.3 billion in 2019 to $3 billion in 2022.

The study further outlines CJ's regional business strategies, including expediting bibigo products' listing in mainstream U.S. retail channels like Walmart and Kroger through integration with Schwan's Company's distribution channels.

In Vietnam, CJ Foods acquired local companies, securing its position as the country's top kimchi and frozen ready-meal player. Meanwhile, in Europe, where Korean cuisine is relatively unfamiliar, CJ Foods collaborated with local restaurant chains to introduce its products.

"With global interest in Korean culture on the rise, CJ had a lot of tailwinds to expand our business worldwide," Lee Sun-ho, chief growth officer of CJ Foods and the eldest son of CJ Group chairman, said in the case study.

"We need to move fast to expand our Korean food business globally. That way, even if the interest in Korean culture dies down, people will still be eating Korean food," Lee added.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]