CJ targets $38 million in food sales in Europe, may seek partner for faster foray

[Source: CJ Cheiljedang Corp.]

CJ Cheiljedang, South Korea’s food conglomerate, is expediting its foray into the European food market with a target to earn in 500 billion won ($382 million) in sales in five year and may look for European partner based on the success in the U.S.

“I have witnessed unlimited potential in the European market after watching people putting Bibigo packs in their carts in grocery markets in London and Paris,” said Choi Eun-seok, CEO of CJ Cheiljedang. “Our global business won’t be complete without Europe. We need a strategy that will allow a quantum jump.”

CJ is accelerating its drive in Europe, where Asian food demand has been on the fast growth. CJ’s sales have expanded at a compound annual growth rate of 38 percent in the past four years in Europe, mostly Britain, Germany, and France, with a combined market size for Asian food reaching 5.6 trillion won, 100 times bigger than the Korean market.

To achieve its goal in the market, it has selected rolls and dim sums as primary menus as Europeans are more accustomed to Chinese, Indian, and Thai food than Korean food. It is expected to produce egg rolls and spring rolls targeting European consumers at its production base at Mainfrost, a German food firm it acquired in 2018, as well as Kizuna plant in Vietnam.

Betting on its success based on its know-how earned from its acquisition of Schwan’s Company in the U.S. and Cau Tre in Vietnam, the firm may review acquiring local food firms with distribution channels and production infrastructure.

It also set up a local operation in Britain in May, selecting the market as its first target market in Europe because it is the biggest ready-to-eat or ready-to-cook meal kit market.

Based on the success of its Bibigo mandoo, Korean for dumplings, CJ plans to diversify Asian ready-to-cook meal kit lineup using rice and noodle. It will also launch vegetarian or vegan meal kits for Europeans.

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