Dumpling Domination
CJ CheilJedang’s dumplings are creating a new genre of “K-Mandu” and accelerating the globalization of Korean food in the U.S.
Having grown into a big food brand with annual sales of 100 billion won (US$91.62 million), the company generated 35 billion won (US$32.07 million) in sales during the first quarter in the U.S. The figure is a 48 percent increase from 24 billion won (US$21.99 million) a year earlier.
In particular, Bibigo Dumplings turned over 22 billion won (US$20.16 million) in the first quarter alone, which is about 40 percent of its total sales last year.
The company said that Korean mandu, or dumplings, are growing fast in the market by differentiating itself from Chinese mandu, which currently dominates the mandu market, with better taste, health, and convenience.
The estimated dumpling market in the U.S. amounts to nearly 470 billion won (US$430.6 million), and customers consume dumplings a lot thanks to its convenience as a simple recipe.
The aggressive investment and thorough localization strategy of CJ CheilJedang both play a vital role in successfully dominating the U.S. dumpling market based on its Bibigo Dumplings.
In a bid to secure the amount of the products in the U.S. market, CJ CheilJedang invested a total of 28 billion won (US$25.65 million) and has constructed new plants in Fullerton, California.
From the beginning of last year, the company started operation of the dumpling factory in Fullerton at full capacity and established infrastructure with a capacity to produce a total of 30,000 tons annually, along with the output from its existing dumpling plants in Paramount, California and Brooklyn, New York.