A pop-up store opened in New York by CJ CheilJedang last year to promote bibigo products. Provided by CJ CheilJedang
Earlier this year, CJ CheilJedang received an offer from the LA Lakers, the most prestigious team in the NBA, to form a global marketing partnership. CJ CheilJedang’s food brand bibigo was also included on the players’ uniforms. The Los Angeles Lakers are a prestigious club that has won 17 championships in their career, and includes top NBA stars LeBron James and others.
The LA Lakers, which are famous for being picky about sponsors, first proposed a partnership with CJ, it is said that the movie ‘Parasite’ and the US PGA tour ‘The CJ Cup’ had an influence. It is said that attention was paid to CJ’s content capabilities and expandability. It was the moment when we confirmed that bibigo, which has been in its 10th year since its launch, is taking off as a ‘global brand’.
The popularity of K-food is soaring thanks to the spread of K-culture, such as K-pop, the movie Parasite, and Netflix’s most popular drama ‘Squid Game’, such as BTS and Black Pink. Exports also increased significantly despite COVID-19. Behind the K-Food Syndrome was the struggle of companies that had worked hard to develop overseas markets for decades.
○ Bibigo 10 years, K-food flying
When CJ CheilJedang launched bibigo in 2011, it declared that it would “nurture it into a global brand.” This dream, which received little attention, became a reality 10 years later. Bibigo products such as dumplings and bibimbap sold 1.85 trillion won in domestic and overseas last year. Sales of 2.3 trillion won are expected this year. More than half of our sales come from overseas.
CJ Group first invested in culture to foster K-food. The film Parasite, which rewritten the history of the academy last year, was the result of CJ’s 25-year investment in K-culture. CJ has planted K-culture not only in North America, but also in South America and Asia. Since 2017, it has been hosting The CJ Cup by pouring more than 10 billion won every year. It is analyzed that these efforts have resulted in the signing of a partnership with the LA Lakers.
It’s not just CJ. In recent years, domestic food companies such as Orion, Nongshim, Daesang, Pulmuone, and Samyang are leaping forward as global brands. According to the Korea Customs Service, K-food exports reached a record high of 4.28 billion dollars (about 5.9 trillion won) last year. Sales of products produced and sold overseas are not included.
○The market through ‘Squid Game’
The growth of the Korean ramen industry, which has become the ‘noodles of the world’, is mostly done overseas. This year’s overseas sales of Nongshim Shin Ramyun surpassed domestic sales for the first time since its launch in October 1986. As of the third quarter of this year, out of Shin Ramyun’s 690 billion won in sales, overseas sales accounted for 53.6% (370 billion won).
This is thanks to the worldwide box office success of ‘Jjapaguri (Chapagetti + Raccoon)’, which appeared in the movie Parasite. The chapaguri craze was a global marketing opportunity that Nongshim had. However, the COVID-19 pandemic (great spread) has taken hold. Nongshim devised an online-oriented marketing strategy. In the United States, an animation ad titled ‘The Delicious Instinct of Shin Ramyun’ was released, collecting 14 million views on YouTube. Nongshim will complete the second plant near the first plant in Los Angeles at the end of this year. Based on the second plant as a base, the company plans to strengthen its penetration into Mexico and South America as well as the United States and Canada.
Daesang will be the first Korean food company to operate a kimchi factory in the United States at the end of this year. Kimchi has recently been in the spotlight as a healthy fermented food, and exports have increased significantly. Daesang had originally planned to start operation of its U.S. plant last year, but due to the COVID-19 outbreak, not only licensing but also on-site inspections were delayed several times. As the schedule was delayed, Daesang concentrated on consumer research, securing raw material distribution networks, and product development. An official from Daesang said, “We have completed product development and are in the process of pilot production of kimchi.
○Kkobuk Chip, targeting the taste of the US mainland
Korean sweets are also recognized for their potential in the US market. Orion’s ‘Kkobuk Chip’ succeeded in entering 72 stores of Sam’s Club, a large distribution mart in western areas such as California, Arizona, and Colorado in the United States last month. This is due to the growing interest in Korean food by locals who have been exposed to Korean movies and dramas.
Not only processed food companies but also franchises are actively entering overseas markets. Chicken franchise company Genesis BBQ recently ranked 5th as the fastest growing restaurant brand in the United States. SPC Group, which operates bakery brands such as Paris Baguette, has 430 overseas stores.
Moon Jeong-hoon, a professor of Agricultural Economics and Sociology at Seoul National University, said, “Due to the popularity of K-culture, exports of Korean agricultural products such as Shine Muscat and rice as well as processed foods such as dumplings, ramen and snacks are increasing.”
Reporter Jeon Jeon-ri/Park Jong-gwan sljun@hankyung.com
