Korean food firms going global; More than 70 percent of overseas sales made by the country’s top five food companies were made in Asian countries last year
May 16, 2014 Leave a comment
Updated : 2014-05-08 18:57
Food firms going global
By Park Ji-won
More than 70 percent of overseas sales made by the country’s top five food companies were made in Asian countries last year, according to a research firm, Tuesday.
The combined overseas sales of Orion, Daesang, CJ CheilJedang, Nongshim and Lotte Confectionary were 5.6 trillion won in 2013. That represents about 28 percent of their revenue.
Their sales in Asian countries were 4.26 trillion won, accounting for some 75.1 percent of their overseas sales, according to the CEO Score.
The portion of their sales in Asia to overseas sales in 2013 rose 1.9 percentage points from a year earlier, when the portion was 73.2 percent.
Among the five firms, Orion’s sales in Asia were highest with 93.8 percent. It posted 1.33 trillion won in overseas sales last year. Some 1.25 billion won in sales were from Asian countries such as China and Vietnam. Sales in China were 1.11 trillion won.
Its sales in the Chinese market account for 83.5 percent of the firm’s overseas sales. That represents 46.5 percent of its total sales.
Meanwhile, Daesang posted some 415.3 billion won in sales in Asian countries such as Indonesia and Vietnam, accounting for 83.4 percent in overseas sales.
The food company mainly sells condiments such as Miwon and liquid fertilizer in Indonesia and Vietnam.
CJ CheilJedang was third ― the portion of overseas sales in revenue accounted for 72.7 percent.
It posted some 3.15 trillion won in overseas sales ― about 2.29 trillion won from Asian countries, mainly in China and Indonesia. It is exporting bioproducts such as lysine and nucleic acid to local companies overseas, such as in China and Indonesia.
Nongshim’s overseas sales accounted for some 50 percent thanks to its flagship instant noodles sold in North and South American countries.
It posted some 261 billion won in overseas sales last year. About 120 billion won in sales came from Asia.
Lotte Confectionary raised some 120.9 billion won in sales in China and India last year accounting for 34.3 percent in overseas sales. The firm didn’t reveal the sales details of the Asian markets, except China and India, so overseas sales could account for a higher portion in sales.
Lotte Confectionary raised the top growth rate in overseas sales in Asia, increasing 6 percent in 2013 from a year ago, while CJ CheilJedang increased some 4.5 percent in the same period.
Meanwhile, Nongshim’s, Orion’s and Daesang’s overseas sales rates went down 0.1 percent, 0.2 percent and 3.1 percent, respectively.
About bambooinnovator
Bamboo Innovator 