Daesang Corp. President Myung Hyung-sup.

Daesang, an entirely home-grown Korean company, has become one of the nation’s top household comprehensive food companies. It boasts the world’s top-class fermentation technology. It was established with Korean capital and its own technology in 1956.

Celebrating its 60th anniversary this year, Daesang has declared its 2016 management tasks maximizing profits in core businesses and securing future growth engines. Specifically, Daesang strives to lay a foundation for stable profits through the strengthening of core capabilities. The company devotes itself to exploring future growth engines for its “second founding,” and it tries to expand global business portfolios. 

Daesang plans to secure financial resources essential for the exploration of future growth engines by earning profits in conventional mainstay businesses, including fermented soy and artificial seasoning. Specifically, Miwon, the group’s first brand synonymous with the group’s history, is entering an aggressive marketing mode. Daesang is trying to resurrect the fermented soy paste and artificial seasoning businesses, including red pepper paste, changing its raw material from rice to unpolished rice, and naturally matured soy sauce. The company has released such ready-made cuisines as the Whistling Cook this year.  

The company is trying to tap the potential of the B2B market in consideration of sagging economic conditions, caused by Korea’s low growth rate and aging population.

The company is expanding its global businesses strategically to reflect the fact that the domestic food market cannot grow further at home due to Korea having the lowest birth rate in the developed world. The company’s strategy is designed to ensure continued growth by expanding the global business that Daesang is now focusing on. The strategy concentrates on making inroads into foreign alcoholic beverage markets by taking advantage of such food businesses as red pepper paste and Hongcho vinegar drink. The company is stepping on the gas to establish itself as a material production company by exploring overseas production centers. 

Daesang is also attaching priority to developing new industries and products that control markets. The competition of the food market is getting fierce, and clients’ consumption patterns are changing fast. In this regard, the company plans to command market leadership through the timely release of products tailored to meet clients’ consumption patterns and needs. Daesang is concentrating its energies and capabilities to explore ideas by mobilizing all marketing, R&D and other staff members. 

In order to expand on its core strengths, Daesang spares no efforts to provide omnidirectional support to evolving such conventional cash cows as MSG and red pepper paste products. The company is accelerating efforts to conduct R&D activities to develop replacements of the conventional sources of revenue. 

Exploration of New Businesses, Products

The food business division plans to focus on exploring new businesses and products to boost growth momentum for the future. It will also aim to improve the performances of low-profit businesses. The company plans to divide business portfolios into profit-oriented and growth-oriented ones, as well as having all divisions nurture and develop next-generation cash cow products. 

The starch sugar business plans to develop new B2B materials and substances, expand overseas platform bases, and establish a solid foundation to achieve a target of posting 100 billion won in overseas exports. The bio-business division plans to focus on securing a competitive edge in the global market in terms of prices, as well as improving B2B sales and marketing capabilities, and developing new products.

Daesang has become one of the nation’s representative household food brands with such products as the drink Hongcho and Sunchang Gochujang.(Photos:Daesang Corp)