CJ CheilJedang has made an investment to dramatically increase dumpling sales in the North American market and discover the’next-generation K-food’ that will succeed dumplings. CJ CheilJedang announced on the 12th that “with the support of the South Dakota state government located in the midwestern United States, we have confirmed the site for a production base of 560,000 square meters (about 170,000 pyeong) in Sioux Falls.”
CJ CheilJedang will establish a production infrastructure in the US West (California), East (New York, New Jersey) and central (South Dakota, etc.). At the Beaumont production base in California, which started operation last year, it expanded the’room temperature production line’, such as fried rice and noodles, in addition to dumplings. Sioux Falls also plans to expand its production area from dumplings to other items.
Dumplings sell more in the US than in Korea
Bibigo sales trend. Graphic = Reporter Kim Kyung-jin [email protected]
Demand for’bibigo dumplings’ is exploding enough to exceed 1 trillion won in annual sales last year. Already, the utilization rate of dumpling production plants across the United States is around 90%. It plans to expand its production base to prepare for mid- to long-term demand in the future and increase the US portion of all overseas dumpling sales to 70%. Since bibigo dumplings ranked first in the US dumpling market in 2016, last year, they recorded sales of about 420 billion won in the US, more than Korea (360 billion won).
The Global Dumpling Technology Center, which was newly established last year, has created facilities and standards for bibigo dumplings and started transplanting them to overseas production bases. From October last year, through the distribution network of’Schwans’, an American frozen food company acquired in the previous year, it began to expand the contact point of consumers in the US market. Currently, it has a variety of distribution channels, including Wal-Mart, Kroger, and Target, which are representative US distribution channels, as well as large marts such as Food City and Hibe, grocery stores, and small and medium-sized supermarkets.
Bibigo US production base. Graphic = Reporter Kim Kyung-jin [email protected]
It is also planning to foster’Next Dumplings’ to secure future competitiveness in the global food market. Items with high growth potential include’Korean Chicken’,’Hetbahn’, and’Kim’. In addition, in line with the growth of’hot sauce’ in the US market, the base of K-sauce such as gochujang will be expanded and’Kimchi’, which is highly interested in’healthy fermented food’, is also actively promoted. An official from CJ CheilJedang said, “We will expand our achievements in North America to other countries and grow Bibigo into a’K-food global mega brand’.”
Reporter Chu In-young [email protected]