Orion bursts into the box office jackpot of’Kobuk Chip’ “Next goal is to diversify portfolio”
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| Orion, which recorded the highest sales ever last year, is trying to find new growth engines to diversify its business portfolio. /The Fact DB |
Orion “We will leap forward as a global general food and healthcare company”
[더팩트｜문수연 기자] Orion is accelerating the diversification of its business portfolio with the aim of transforming into a comprehensive food and healthcare company.
Amid the’K-food’ craze last year, the new product’Cobuk Chip Choco Churros Flavor’ hit a box office jackpot and recorded the highest sales ever. It is a strategy to secure sustainable growth engines by expanding the scope.
According to the industry on the 21st, Orion is showing a clear increase in sales, focusing on’three new businesses’ such as △home convenience food, △beverage and △bio. Launched in 2018 as a substitute for meals,’Market O Nature’ surpassed 15 billion won in sales and 35 million in cumulative sales last year thanks to an increase in demand for simple substitutes and a strategy to expand the lineup. This is a 34% increase from the previous year and is the highest performance since the brand was launched.
In addition, Orion is expanding its global influence by exporting Jeju lava water, which was launched last year, to Vietnam after China, and is starting the beverage business in earnest by releasing Dr.U Drink in June of the same year. In particular, Dr. U drink recorded sales of 4 billion won last year.
The achievements in the bio field are also noteworthy. Orion signed a joint venture agreement with China’s state-run pharmaceutical company Shandong Lukang Pharmaceutical in October last year to advance into the bio business. Orion Holdings and Lukang plan to invest 65% and 35%, respectively, and promote the business through a joint venture called’Shandong Lukang Haoriyou Biological Technology Development Co., Ltd.’ (tentative name).
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| Orion’s ‘Chocolate Chips’, launched last year, surpassed 11 million bags in cumulative sales within four months of launch. /Orion provided |
It is interpreted that Orion’s focus on new businesses is not irrelevant to the congestion in the confectionery market due to lower fertility rates. The domestic confectionery market has stagnated at around 3 trillion won for the third year.
In the confectionery business, Orion’s’Cobuk Chip Choco Churros Flavor’, which was launched last year, exceeded 11 million bags in cumulative sales in 4 months of release, and’Choco Pie Banana’ exceeded 10 million in 50 days. Although it recorded good results, it is interpreted as a strategy to focus on discovering and fostering future growth engines as the growth trend of the confectionery industry is slowing.
In fact, the domestic granola market is showing a steep growth, with a scale of 67 billion won as of September last year, growing more than 15% compared to the same period last year.
The global market size of the bio industry also recorded an annual average growth rate of 9.8% from 330 trillion won in 2013 to 635 trillion won last year. In particular, the growth potential of the bio industry is being evaluated more highly due to the prolonged COVID-19 outbreak, and the Chinese pharmaceutical and bio market, where Orion entered, is currently reaching 160 trillion won.
An official from Orion said, “Because Jeju Lava Water is in the early stages of business, we plan to steadily expand exports, and Granola will expand its market through diversification of its product line.” “Because the bio business is a business that needs to be viewed in the long term, “We will complete the establishment of a joint venture this year and prepare for the plan to proceed smoothly.”