CJ Group Chairman Lee Jay-hyun. (Photo: CJ)

CJ Cheiljedang logged its best-ever annual sales and net profit last year with sales figures coming to 18.670,1 trillion won and net profit 925.4 billion won, up 13.3 percent and 124.5 percent, respectively, owing to its two leading sectors of operation, bio and foods doing exceptionally well.

The bio sector posted 4.888,9 trillion won in sales in 2018, up 14.2 percent with operating profit coming to 194.1 billion won in the sector, up 42 percent YoY thanks to the excellent sales of its animal feeds including amino acid and food condiments.

The food sector recorded 5.271,8 trillion won in sales, up 3.5 percent YoY helped by boosts in the sale of HMR to around 2 trillion won, up around 20 percent YoY, although its operating profit fell 1.5 percent YoY to 357.5 billion won due to increased marketing expenses.

Officials of the company said they will go for a huge increase for its share of the HMR market, focusing on the main products, while the products will be more effectively produced at the Food Production Complex in Jincheon, North Chungcheong Province, slated to go on stream this year.

The company will also pursue the expansion of its overseas market in such countries as the U.S., China and Vietnam.

CJ’s goal is to become a major player in the global frozen food market thru the acquisition of Schwan’s, a U.S. frozen food company. With core technology procured in advance, CJ plans to diversify the sensationally popular frozen dumpling category, localize existing products and develop new Korean menus.

Also, it will focus on developing a variety of recipes as to create new market based on ‘ultra-superior’ R&D capabilities.

With the acquisition of a company with nationwide coverage, CJCJ has gained momentum to expand in North America, the largest processed food market in the world. CJCJ’s infrastructure of manufacturing facilities in the US will grow from five facilities in California, New York, New Jersey, and Ohio by fourfold to 22 facilities.

CJ CheilJedang signed a definitive agreement to acquire Schwan’s Company. This transaction will provide CJCJ a platform for Korean Food (K-Food) expansion with access to manufacturing and distribution infrastructures across the US as well as extensive R&D capabilities.

The acquisition will further lay foundation to fulfill Chairman Lee Jay-hyun’s philosophy and ambition of spreading Korean food culture across the world. Founded in 1952 and incorporated in Minnesota, Schwan’s Company is a frozen food company that operates nationwide frozen food manufacturing infrastructure and sales network.

The Company has 17 manufacturing facilities and 10 distribution centers in the US, and competes with global food companies including Nestlé in the frozen pizza, frozen pie, and frozen Asian appetizer categories with #1 or #2 in market shares.

With the acquisition of a company with nationwide coverage, CJCJ has gained momentum to expand in North America, the largest processed food market in the world. CJCJ’s infrastructure of manufacturing facilities in the US will grow from five facilities in California, New York, New Jersey, and Ohio by fourfold to 22 facilities.

CJCJ’s ready meal product line focused on dumplings and noodles will be extended with additional categories including pizza, pies, and appetizers, which are beloved by consumers in the US.

The combination of CJ CheilJedang and Schwan’s Company signals foundation for ‘K-Food’ expansion has been laid with the establishment of world-class infrastructure in the biggest food market globally.