The photo of Bibigo Rice made by CJ Cheiljedang sweeping the frozen food market in its initial year and continue to boost its sales to the tune of 100 billion won in three years and three months since it was put on sale firmly establishing itself as a HMR product. (Photos: CJ Cheiljedang)

CJ Group Chairman Lee Jay-hyun.

Sales of CJ Cheiljedang’s Bibigo Rice totaled 40 billion won as of Oct. 31 this year, bringing the sales of the cooked rice mixed with meat and vegetables to 100 billion won in 3 years and 3 months, the company said on Nov. 25.

The ready-to-serve rice sold well in its inaugural year three years ago, with sales reaching 10 billion won and sales in the following year doubling. Sales rose 90 percent from the preceding year, showing that an increasing number of households began to have the Bibigo rice instead of cooking rice themselves, allowing the ready-to-eat rice to take its place as an HMR product, the company said.

An official of the food maker said the company expects sales of Bibigo rice to reach around 50 billion won this year if the current trend keeps up for the rest of the year, adding that the popularity of the ready-to-eat rice stems from the convenience associated with preparing the food, which comes in 12 kinds including those mixed with beef, pork and vegetables and the company plans to keep turning out new kinds of frozen food mixtures, adding fish and other meats later.

Brand manager Lee Dong-ju said the Bibigo rice changed the impression that Koreans had over frozen foods. He said he hopes the company will continue to lead the frozen food market in the future through stepped up research and the rising popularity of the Bibigo rice.

CJ CheilJedang is the core subsidiary in charge of the food and bioengineering business sectors at CJ Group. It has led the development of the Korean food industry for the past 60 years and contributed to the development of the bioengineering industry as the nation’s top food company.

Launched in 1953 as a food ingredient company, CJ CheilJedang has expanded its business to processed foods. It was spun off from CJ Corp. in 2007 and has been concentrating on the food and bioengineering business. CJ CheilJedang has achieved outstanding growth, quantitatively and qualitatively, in food processing and food ingredients in the food business sector, as well as the bio and pharmaceutical in the bioengineering business sector.

 
We are striving to go beyond being the No. 1 in Korea to becoming a global leader in each business sector.

CJ CheilJedang will continue to grow and evolve in the food & bio sectors by practicing the spirit of OnlyOne and develop into a global lifestyle company. South Korean food manufacturer CJ Cheiljedang has said it will buy US frozen food firm Schwan’s for around $1.84 billion as it continues to expand overseas.

CJ Cheiljedang will acquire 80% of Schwan’s, in what represents the largest foreign merger and acquisition deal carried out by CJ Group. It is expected the deal will be closed next year.

Based in Minnesota, Schwan’s sells mainly frozen foods, including pizza and desserts. Its brands include Red Baron, Tony’s, and Freschetta pizza, and Mrs. Smith’s and Edwards desserts.

The business reportedly ranks second in the US frozen pizza retail market. It records around $3 billion in annual sales and has approximately 14,000 employees.

The firms said Schwan’s would keep its name, its corporate office in Bloomington and its main operations in Marshall, both in Minnesota. Minnesota’s The Star Tribune quoted Schwan’s CEO Dimitrios Smyrnios as saying: “Obviously there’s a certain amount of nervousness with a sale. We are going to operate business as usual in Marshall, business as usual in Bloomington, business as usual in Minnesota.”

The acquisition comes months after CJ Cheiljedang boosted its foreign business with the purchase of US firm Kahiki Foods and Germany’s Mainfrost.

As well as selling packaged food, CJ Cheiljedang also runs the Bibigo chain of Asian fast-food restaurants in California.