"5-Year Goal of 500 Billion KRW in Sales" CJ CheilJedang Targets European Food Market

CEO Choi Eun-seok: "Global Strategy Not Complete Without Europe, Quantum Jump Strategy Needed"
Expanding European K-Food Market with Global Strategic Products (GSP) like Dumplings and Korean Ready Meals
Considering Local Food Company M&A if Necessary

CEO Choi Eun-seok (fifth from the right) is sharing opinions with directors and key executives at the CJ CheilJedang Europe mid-to-long-term growth strategy meeting held in Frankfurt, Germany.

[Asia Economy Reporter Eunmo Koo] CJ CheilJedang is set to intensify its push into the European market based on the success of its 'Bibigo Dumplings' in the U.S. market. The company plans to boost its European food business sales to 500 billion KRW by 2027, leveraging global strategic products (GSP) such as dumplings, processed rice, and Korean-style chicken.

CJ CheilJedang announced on the 5th that it held a 'Europe Mid-to-Long-Term Growth Strategy Meeting' in Germany and will accelerate its entry into the European processed food market based on this plan.

Choi Eun-seok, CEO of CJ CheilJedang, said, "Seeing consumers putting Bibigo products into their carts at large supermarkets in London and Paris made me feel infinite potential," adding, "Our global strategy is incomplete without Europe, so a quantum jump strategy is necessary." To this end, CJ CheilJedang established a UK subsidiary in May as an advanced base for European market entry, secured production bases such as Germany's frozen food company Mein Frost, acquired in 2018, and the Kizuna factory in Vietnam, completed earlier this year, which is the first model of 'global production → global export.'

First, CJ CheilJedang plans to expand the Korean dumpling market by leading with Bibigo Dumplings, which have relatively high recognition among local consumers. The lineup will be expanded focusing on dumplings using chicken, familiar to Europeans, and products proven in the U.S. market. In particular, a new 100% plant-based Bibigo Dumpling targeting vegetarians will be launched in the third quarter, and entry into the ready meal market using global strategic products such as processed rice and K-sauces will also be pursued.

Additionally, efforts will be made to enhance experience with K-food and increase Bibigo brand awareness. Through collaboration with various platform companies, Bibigo products will be offered, and data on consumer trends will be accumulated to apply to new products. Alongside this, the Bibigo brand awareness centered on dumplings will be expanded to other K-food products such as kimchi and K-sauces. In the second half of the year, distribution channel entry for global strategic products with mass appeal, such as Korean-style chicken and processed rice, will be promoted. Seaweed will be introduced as a snack product suited to European tastes, focusing on the healthy snack market.

The Asian food business will also be actively expanded. CJ CheilJedang plans to showcase differentiated products in the European market by utilizing its dumpling know-how and the capabilities of Southeast Asian-style rolls accumulated through acquisitions of the U.S. company Schwan's and Vietnam's Cau Je. Furthermore, the company aims to grow into an Asian food company encompassing K-food in Europe by expanding its product lineup of rice and noodles. If necessary, it will also consider mergers and acquisitions (M&A) of local food companies with distribution networks and infrastructure.

Since stepping into the European market in 2018 with Bibigo Dumplings as the spearhead, CJ CheilJedang has shown an average annual growth rate of 38% over four years until last year. This year's sales are expected to reach approximately 60 billion KRW, a 4.5-fold increase in four years.

A CJ CheilJedang official said, "Europe is known as a barren land for K-food, but recently, interest in Asian food and K-culture has increased, creating many opportunities," adding, "Based on Chairman Lee Jae-hyun's philosophy of globalizing Korean food culture, we will widely promote the excellence of K-food under the Bibigo brand in Europe following the U.S. and leap forward as the best Asian food company."

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