Melona and Banana-Flavored Milk Captivate Global Market... Binggrae Achieves Record Overseas Performance This Year

Merona in the US, Banana Mat Uyu in China... Overseas Sales Expected to Surpass 70 Billion Won

[Asia Economy Reporter Lee Seon-ae] Binggrae is making strides in overseas markets with its products 'Melona' and 'Banana Flavored Milk.' Especially in the U.S. and Chinese markets, product sales have surged, causing overseas sales revenue to increase sharply this year. For the first time, overseas sales are expected to surpass 70 billion KRW, marking an all-time high.

According to Binggrae on the 16th, as of the third quarter, Binggrae's overseas sales amounted to 57.8 billion KRW, growing about 15% (50.1 billion KRW) compared to the same period last year. Sales volume has continued similarly into the fourth quarter, and with a double-digit sales growth rate expected, the company anticipates breaking the 70 billion KRW mark for the first time ever.

Internally, there is a clearly encouraging atmosphere regarding reaching the 70 billion KRW milestone this year. Until now, Binggrae's overseas sales hovered in the 40 billion KRW range: 46.9 billion KRW in 2016, 45.4 billion KRW in 2017, and 49.2 billion KRW in 2018. Starting in 2019, the upward trend began, quickly surpassing 50 billion KRW and achieving 63.2 billion KRW in 2019. With the 70 billion KRW breakthrough expected this year, Binggrae is set to record a quantum jump for two consecutive years.

The reason for this record-breaking overseas performance is thanks to growth in the U.S. and Chinese markets. First, the remarkable growth of the U.S. subsidiary stands out. In the third quarter this year, the U.S. subsidiary's sales reached 27.4 billion KRW, a 55.6% increase (17.6 billion KRW) compared to the same period last year. It has already surpassed last year's total sales of 22.6 billion KRW and is looking at an all-time high. The main driver of growth is Melona. The expansion of Melona's presence in large retailer Costco stores has led to increased sales.

Although Melona products were sold at Costco stores long ago, it was limited to a few locations. However, this year, the expansion has been actively extended nationwide across the U.S. Costco, the largest membership warehouse club in the U.S., is considered a symbol of mainstream local distribution.

Additionally, the increase in snack demand within U.S. households due to remote work and remote schooling caused by the COVID-19 pandemic positively impacted Melona sales. Particularly in the U.S., ice cream has become a cultural staple as a snack dessert consumed every day, 365 days a year.

The Chinese subsidiary's third-quarter sales reached 27.3 billion KRW, a 35.1% increase (20.2 billion KRW) compared to the same period last year. The Chinese subsidiary also surpassed last year's total sales of 26.4 billion KRW, raising expectations for this year's total sales. In the Chinese market, Banana Flavored Milk has high sales volume.

A Binggrae official stated, "Although market uncertainty increased due to COVID-19, agile responses by local subsidiaries led to record-breaking overseas sales performance," adding, "Uncertainty will continue next year, but we will maintain growth through strategies tailored to each local situation."

Meanwhile, the securities industry expects record-breaking performance to continue next year as well. The nationwide expansion of stores in the U.S. is expected to generate significant synergy next year. Melona sells over 10 million units annually in the U.S. Unlike in Korea, flavors such as strawberry, mango, and watermelon are also available. It firmly holds the top spot in imported ice cream sales in the local convenience store industry.

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