The Secret to the Convenience Store Hit "Chewy Macaron"... Chewy Collaboration

[Beautiful Journey] Relay Interview
③ BGF Retail - Foodcore
Interview with Kim Young-sik, CEO of Foodcore
Development of CU and 30,000-Store Japanese Mega-Hit 'Macaron'

[Asia Economy Reporter Minyoung Cha] Among the three steady sellers at convenience stores?banana milk, craft beer, and lunch boxes?there is a newly emerged product that has captured the hearts of the younger generation. It is the private brand (PB) product 'Chewy Macaron,' created through a collaboration between CU, operated by BGF Retail, and the dessert specialist company Foodcore. Within just one month of its November launch, it surpassed the long-established convenience store staples to rank third in sales. It has become a mega-hit product selling over 30,000 units daily. Similar imitation products have since flooded competing convenience store companies. This marked the dawn of the so-called 'Pyeoncaron era.'

13 Years of Partnership with Convenience Store CU

Youngsik Kim, CEO of Foodcore

On the 25th, we met Kim Youngsik, CEO of Foodcore, the manufacturer behind 'CU Chewy Macaron.' Foodcore, responsible for a significant portion of CU’s dessert product lineup, has been collaborating with CU for over 13 years since 2007. CEO Kim said, "It started with just one hamburger item, but once that was recognized, more opportunities followed." He added, "We have expanded to various items such as pastries, donuts, cream puffs, and egg tarts, currently supplying over 120 SKUs."

Although the collaboration has been long-standing, this was the first product to achieve record-breaking performance like the chewy macaron. CEO Kim recalled, "From the moment of its first release in November, word of mouth on social media about its delicious taste spread, resulting in average daily sales exceeding 30,000 units. While we could mobilize emergency manpower to meet demand, shortages of raw materials like egg whites and almond powder made it difficult to keep up with demand." In fact, a CU dessert category merchandiser posted a handwritten letter on CU’s official Instagram in December, during the peak macaron shortage, apologizing and asking customers to limit purchases to one per person if they loved the product. It was a time when supply could not keep pace with explosive demand.

The Secret to Success: The 'Handcrafted Touch'

CU had attempted macarons before, but the key to this blockbuster success was the 'handcrafted touch.' Because the macaron shell, or 'coque,' is fragile, it is difficult to replicate the taste using automated equipment. In Foodcore’s entire dessert manufacturing process, the ratio of machine to human labor is usually 4:6, but for macarons, it is 3:7, with more human involvement. Macarons are sensitive to changes in temperature and humidity. Given Korea’s climate, where temperature differences between summer and winter can reach up to 60 degrees Celsius, CEO Kim personally monitors the factory daily to control internal temperature and humidity. The secret recipe ratios for perfect coque and filling are also strictly maintained.

Following the success of the chewy macaron, inquiries for partnerships from other distributors have increased. Nevertheless, Foodcore’s largest sales channel remains CU, accounting for over 80% of total sales. The remainder mostly consists of dessert products for school meal programs, with no separate sales channels developed. Considering the situation of small and medium manufacturers who seek to diversify distribution channels to secure a safer negotiating position, this is an unusual structure.

CEO Kim emphasized, "From the moment I expressed my intention to supply to CU, although it is a large corporation (BGF Retail), I strongly felt that they value loyalty and trust between people. I have also worked based on the values of trust and honesty, and whenever we faced difficulties, we received support such as early payment of funds. Therefore, I want to maintain a good cooperative relationship not only now, when the situation has improved, but also in the future." He explained that early payments were also made to suppliers of raw materials for dessert manufacturing, creating a virtuous cycle.

Developing Premium Desserts to Follow the Macaron This Year

Foodcore’s sales in 2017 reached 25.6 billion KRW, but it recorded an operating loss of 5.3 billion KRW and a net loss of 5.5 billion KRW. However, in 2018, sales doubled to 51.5 billion KRW, with operating profit and net profit turning positive at 900 million KRW and 500 million KRW, respectively. In 2019, sales further increased to 59.7 billion KRW, with operating profit of 1.6 billion KRW and net profit of 1.5 billion KRW.

This year, the convenience store industry, Foodcore’s front-end market, has been hit hard by the COVID-19 pandemic, making it difficult to maintain the annual growth rates seen in 2018 and 2019. Foodcore has expanded its premium dessert lineup, increasing the macaron product range to seven varieties. While the chewy macaron remains the base, variations include strawberry macaron, traditional macaron, and ice macaron. CEO Kim said, "The demand for convenience store desserts is high in university stores frequented by female college students, but this year demand has declined, making it difficult. Since it has become harder to visit cafes, we are focusing on developing premium desserts such as cakes."

This content was produced with the assistance of AI translation services.