Will CJ Cheiljedang Repeat ‘U.S. Bibigo Legend’ in Europe?

President-CEO Choi Eun-suk of CJ Cheiljedang and other executives exchange views at a European mid- and long-term growth strategy meeting in Frankfurt, Germany. (Photos: CJ Cheiljedang)

CJ Cheiljedang is accelerating efforts to explore the European market, unexplored turf for Korean cuisine.

CJ Cheiljedang aims to repeat “Bibigo legend” in Europe through collaboration with European platform companies and M&As, as the company did in the United States.

CJ Cheiljedang said on July 5 that it convened a European mid- and long-term growth strategy meeting in Germany with President-CEO Choi Eun-suk in attendance.

It set a goal of raising sales in the European food business to 500 billion won by 2027.

CJ Cheiljedang, which entered the European market in 2018, looks to post about 60 billion won in sales in 2022.

The company targets raising sales in the Europe food business more than eight times in the next five years.

Korean food makers find it challenging to make inroads into Europe, as the region has different national cuisine culture and distribution conditions, and boasts excellent processed food technology power.

K-food is raging on in Southeast Asia and the United States, but Europe is almost unfamiliar to K-food.

As of late, Europe has begun to be interested in Korean culture. CJ Cheiljedang sees a possibility that localization will pay off.

Americans eat Bibigo products at a Bibigo outlet of Rockefeller Center in New York.

In particular, industry analysts said CJ Cheiljedang’s winning track record in the United States may motivate the company’s challenging in Europe.

CJ Cheiljedang saws sales in the U.S. food business soar from 2,675.6 billion won in 2019 to 3,374.3 billion won last year. CJ Cheiljedang posted 915.3 billion won in the United States in the first quarter of the year.

The company is forecast to chalk up the best-ever sales in the United States for the whole of this year.

President Choi said he saw a possibility to watch consumers place Bibigo products on their cart in large-sized marts in London and Paris. He stressed the need for establishing quantum jump strategy in Europe.

CJ Cheiljedang will prioritize products such as mandu, processed rice and hansik chicken as well as “Southeast Asian-style rolls,” enjoying a relatively high popularity in Europe.

The company aims to become the No. 1 food maker in the wrapped food market encompassing mandu, roll and dimsum.

A corporate body, established by CJ Cheiljedang in May, will play a leading role in exploring the European market.

The company plans to raise the standing of Bibigo in cooperation with local platform companies and it is considering having its products entering distribution channels in the next half of the year.

CJ Cheiljedang plans to utilize Mainfrost, a German frozen food maker, the company acquired in May and the Kizuna plant in Vietnam, as production centers to make an inroad into the European market.