CJ CheilJedang speeds up business expansion in Europe

A bird’s-eye view of CJ CheilJedang’s “Bibigo Market” at the Korea House during the Paris Olympics. [Courtesy of CJ CheilJedang Corp.]

CJ CheilJedang Corp. is intensifying its efforts to penetrate the global market, particularly in Europe, ahead of the 2024 Summer Olympics in Paris, France.

CJ CheilJedang announced on Monday that it will open a Bibigo Market at the Korea House during the Paris Olympics.

Visitors will be able to purchase combo menus featuring Bibigo kimchi dumplings, chicken dumplings, beef bulgogi dumplings, bulgogi rice balls, and hot dogs served with kimchi and tteokbokki.

Korea House, organized by the Korean Sport & Olympic Committee with CJ Group as the title sponsor, will support the national team and serve as a national promotion center from July 25 to August 11.

The Bibigo Market in Paris will debut K-street food items like tteokbokki and hot dogs, which have not yet been launched in Europe.

“Europe is a strategic region where we are actively expanding to establish K-food as a global brand,” said a company official. “We plan to accelerate our entry into major retail channels across key European countries to grow our business.”

CJ CheilJedang initially viewed Europe as a challenging market due to its diverse food cultures and advanced processed food technologies.

However, the company recognized the opportunities arising from high income levels and the acceptance of different cultural foods, particularly in the well-developed ready-to-eat market centered around the UK.

CJ CheilJedang has seen significant growth in Europe.

In the first quarter, food sales in Europe increased by 45 percent compared to the same period last year, and sales in Australia surged by 70 percent.

On the other hand, sales in China and Japan declined due to the sale of a local food subsidiary and the impact of the weak yen, respectively.

Industry projections suggest that the food division’s overseas sales proportion will exceed 50 percent this year, driven by growth in Europe and Australia.

Last year, CJ CheilJedang’s food division recorded overseas sales of more than 5.38 trillion won ($3.88 billion), with the overseas proportion rising from 45 percent in 2021 to 48 percent last year. Sales in Europe and Oceania surpassed 100 billion won.

Bibigo’s dumplings are a flagship product in its global portfolio.

In Europe, Bibigo has expanded its lineup with chicken dumplings familiar to Europeans, and in the U.S., with well-received products. This strategy has boosted Bibigo’s market share in Germany’s dumpling retail market from 18 percent in 2021 to 48 percent last year.

Bibigo products are also available in major Western European supermarkets like Albert Heijn in the Netherlands, Delhaize in Belgium, and Carrefour.

In Australia, despite restrictions on meat exports, Bibigo dumplings are produced locally and sold in major retail channels like Woolworths.

Bibigo kimchi has also shown strong global sales growth. Last year, global sales of Bibigo kimchi increased by approximately 20 percent year-over-year, with notable growth in the U.S. (44 percent), Japan (31 percent), and Europe (25 percent).

CJ CheilJedang exports Bibigo kimchi to over 50 countries, including the U.S., Japan, Vietnam, Europe, and Australia. The Bibigo Shelf-Stable Kimchi, launched late last year, has been introduced in Costco stores in Europe, furthering its reach in the global kimchi market.