MZ Employees' Ideas... Food Companies' Breakthrough 'In-house Ventures'

CJ CheilJedang 'InnoBack' 120 Teams Participate
Pause Main Work to Develop Ideas
Final Call Includes Prize and Rewards

[Asia Economy Reporter Lim Hye-seon] Food companies are securing new growth engines through in-house ventures. Judging that growth is difficult with traditional business methods, they are commercializing employees' fresh ideas to build an 'innovative organizational culture' and accelerate future readiness.

CJ CheilJedang Launches New Business via In-House Ventures

On the 20th, CJ CheilJedang announced that it will promote 'Food Upcycling' and 'Plant-Based Alternative Milk,' selected through its food business in-house venture program INNO 100, as new businesses. The first in-house venture commercialization, 'Food Upcycling,' is a business that uses previously discarded food by-products such as broken rice and soybean pulp to produce processed foods. It applies the concept of 'sustainable ESG management' to reduce food waste. The packaging also recycles used and discarded PET bottles. 'Plant-Based Alternative Milk' is a milk substitute made from plant-based ingredients such as brown rice and soybeans.

INNO 100, meaning '100 days immersed in innovation,' was introduced this February with the purpose of having CJ CheilJedang, with its 68-year tradition, operate like a startup to secure future new growth engines. Employees who apply to the program completely step away from their existing duties and focus solely on concretizing their ideas for 100 days.

With great interest and response from MZ generation (Millennials + Generation Z) employees in their 3rd to 4th year, a total of 120 teams have participated up to the 3rd term, and the 4th term is currently open for applications. The program proceeds through idea submission, proposal presentation, 100-day project execution, final presentation, business execution strategy establishment, and commercialization approval. Teams that pass the final presentation receive rewards and support, including prize money and initial investment for commercialization.

Corporate Spin-Off Possible if Business Viable

Commercialization decisions are made by the 'Innovation Committee,' a decision-making group related to innovative growth. The Innovation Committee consists of key executives including the CEO and an employee-centered consultative body called the 'Open Council.' Major evaluation criteria include business suitability according to market trends, growth potential and attractiveness, entrepreneurial spirit and team capabilities for business execution, innovation, and technological ripple effects. Upon deciding commercialization, the product portfolio is finalized, mass production verification begins, and it is even possible to establish an independent in-house organization (CIC) or spin off the company.

Both the Food Upcycling and Plant-Based Alternative Milk businesses have been confirmed to operate as independent in-house organizations. Senior employees and others are recruited both internally and externally to supplement any operational deficiencies. The Food Upcycling business is reviewing facility investments for by-product processing and mass production. After meeting consumers through crowdfunding by the end of this year, the product is planned to be officially launched next year.

Nongshim and Lotte Chilsung Also Launch New Businesses via In-House Ventures

Nongshim, following the launch of 'Lifil Derma Collagen,' known as edible cosmetics, on the 17th through its in-house venture, has completed development of the dried food brand 'Simplet.' Lifil Derma Collagen achieved 30 billion KRW in sales last year and established itself in the market. Simplet features ingredients such as meat and vegetables dried using a drying method that allows long-term storage at room temperature. The raw materials are dried as is to maintain taste and quality. When soaked in water for about 10 minutes, the original form and texture are restored, allowing use in various dishes such as soups, curries, and stir-fries. Simplet reached its first crowdfunding goal on the Wadiz platform in just 20 minutes in June and also succeeded in its second round of funding.

Lotte Chilsung Beverage has supported startups through its in-house venture program 'Chilsung Camp' since 2018. This year, the 3rd term member 'Workers High' was spun off as an independent corporation. Workers High developed an 'Office Mini Bar' that sells food and consumer goods through customized vending machines suited to office environments. After a one-year nurturing period, it received 500 million KRW in equity investment and participates in the acceleration program of Lotte Ventures, Lotte Group's venture capital. The 'Project Ganda' team also successfully completed crowdfunding for a 'Smoothie Kit,' which vacuum-packs fresh fruits and vegetables for immediate blending, and has started sales.

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