CJ CheilJedang's Bibigo savors success in overseas markets
![Local residents enjoy Korean food at the Bibigo pop-up store in Shoreditch, London. [CJ CHEILJEDANG]](https://koreajoongangdaily.joins.com/data/photo/2024/05/29/aecf6c29-2fa4-471d-ad90-3b006c82da46.jpg)
Local residents enjoy Korean food at the Bibigo pop-up store in Shoreditch, London. [CJ CHEILJEDANG]
Amid the global popularity of Korean cuisine, CJ CheilJedang is ramping up its expansion in the international food industry, driven by its Bibigo brand.
The company's U.S. food business, established through the acquisition of Schwan's in 2019 as a platform for Korean food expansion, has witnessed impressive growth over the past four years.
Sales from the U.S. market soared to 1.18 trillion won ($870 million) in the first quarter of this year, a testament to the effective utilization of food production, distribution infrastructure and research and development (R&D) capabilities across the United States to promote global strategic products (GSPs).
Bibigo mandu (dumplings), at the forefront of the Korean dumpling movement, have maintained their leading position as the top brand in the U.S. market, surpassing the sales of the second-ranked brand by more than threefold in the first quarter of this year.
Building on the success of its U.S. food business, CJ CheilJedang is actively expanding its presence in the global Korean food market. Recent advancements in Europe and Australia have seen sales exceed 100 billion won last year, with Australia's sales surging by 70 percent in the first quarter of this year alone.
Despite challenges in exporting meat-containing products to Australia, the company established a local production base for dumplings in Australia last year, with Bibigo products now available in all Woolworths stores. Additionally, frozen Bibigo gimbap has been introduced in major Australian retail channels, offering two varieties, including tuna mayo and bulgogi-flavored gimbap made with plant-based ingredients.
CJ CheilJedang has also enhanced its kimchi products exported to Australia from Korea, ensuring they meet the preferences of Australian consumers who prefer freshly fermented kimchi made with local ingredients.
In Europe, CJ CheilJedang expanded its presence by acquiring Mainfrost, a German frozen food company, and has made significant strides with Bibigo mandu. Furthermore, the establishment of its corporate body in the U.K. in May 2022 serves as a strategic foothold for further market expansion.
With a focus on strengthening the recognition of GSPs such as mandu, gim (dried seaweed) and chicken, the company has diversified its distribution channels, targeting ethnic and local mainstream channels as well as business-to-business (B2B) markets. As a result, it has achieved an average annual growth rate of over 37 percent over the past five years (2019 to 2023), with first-quarter sales this year growing by 45 percent compared to the previous year.
CJ CheilJedang aims to further expand its Korean food business across Europe, starting with France, where it established a corporate body in the first quarter of this year. The upcoming Paris Olympics will be leveraged to boost the brand recognition of Bibigo.
Additionally, the company is maximizing its production capabilities in Vietnam and exploring opportunities in neighboring countries. In Thailand, CJ CheilJedang partnered with A-Best in March last year to introduce Bibigo products to major local distribution channels.
In Malaysia, a strategic market for halal products, the company introduced its first halal-certified Bibigo mandu products in January this year, catering to local preferences with options including chicken, Korean spicy chicken and beef bulgogi.
The stellar performance of CJ CheilJedang's overseas food business has also led to an increase in its stock prices, reaching the highest level in a year after the close of the market on May 22.
A spokesperson from CJ CheilJedang said, “The global conquest of Korean food is underway. We will accelerate our expansion into new overseas territories to become a leading player in the global market.”
BY JEONG SEONWU [jeong.seonwu@joongang.co.kr]
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