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

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
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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