- CJ CheilJedang is separating its headquarters into a Global HQ and a Korea Business Division, evolving into a globally-headquartered organization to accelerate the expansion of its Korean food territory.
- The company will establish a UK branch focused on European Korean food market growth.
“This year, we will focus our entire company’s capabilities on strengthening the group’s four major growth engines to make a greater leap forward as a global lifestyle company,” stated Choi Eun-seok, CEO of CJ CheilJedang. “To achieve this, we have established a future-oriented and innovative organization that assigns authority and responsibility to both domestic and overseas businesses.”
CJ CheilJedang Prepares for Innovative Reorganization Aimed at Global Growth
CJ CheilJedang’s Global HQ will handle major business functions such as marketing, R&D and manufacturing in order to efficiently manage both domestic and oversea businesses. As part of marketing efforts, global brand strategies will be established to analyze and disseminate megatrends. In regards to manufacturing, CJ CheilJedang will transplant its ‘OnlyOne’ manufacturing technology capabilities and know-how to its overseas production bases.
The company plans to establish a Growth Transformation Division under its Global HQ to enlarge its six major global strategy products (GSPs) – Mandu (dumplings), chicken, Gim (seaweed), kimchi, K-sauce and processed rice – and drive future innovative growth. To fulfill this plan, GSP organizations that were once scattered within the company have been gathered. Growth Transformation Division’s initial strategic plan teams will oversee discovering and implementing new growth engines such as plant-based food businesses and start-up investments as well as regional growth strategy in North America, Asia-Pacific and Europe.
Strategies to Push Ahead in Overseas Regions
In response to expansion opportunities due to a growing interest in Asian food and K-culture in Europe, which was referred to as ‘the barren land of Korean food’ in the past, CJ CheilJedang plans to establish a British branch in the first half of the year with a focus on the European market. The United Kingdom is known as ‘the country of gourmet’, and is Europe’s largest ready-made meal market while also importing the most processed Korean food products. Consequently, CJ CheilJedang expects that the performance outcome in the UK could bring a trickle-down effect across Europe. CJ CheilJedang has already confirmed the possibility of growing Mandu(dumpling) sales in Europe by 70% in comparison to the previous year by increasing the number of foreign market entries and expanding the stores in its mainstream distribution channel.
Moreover, in Eastern European countries where consumption of Korean food is relatively low, CJ CheilJedang plans to expand its brand awareness by operating shop-in-shop form ‘bibigo To Go’ stores in large supermarkets. The company already opened its first ‘bibigo To Go’ store last month in Carrefour, Romania, introducing 20 different kinds of menu items using GSP products such as Mandu(dumplings) and fried chicken. CJ CheilJedang plans to expand its ‘bibigo To Go’ stores in Romania, as well as broader European markets, in the near future.
