CJ has been a pioneer of Korean Culture in the US, growing its market standing
As a prominent figure in pioneering Korean culture and industry all over the world, CJ has achieved remarkable growth particularly in the US. CJ delivers industry-leading products and services across a diverse range of businesses, including entertainment and food. Through its robust business portfolio and strategic investments, CJ has been able to capture the hearts of American customers and has a growing presence in the market.
CJ’s Expansion into the American Market
CJ invested 6.2 trillion KRW (4.8 billion USD) into its operations in the US throughout 2022. With a workforce of 12,000 employees in the US, CJ holds the position of the third-largest Korean company in the country, surpassed only by Samsung and Hyundai Motors. Currently, CJ operates 22 food and R&D production facilities across 29 states throughout the US, with locations in notable cities including Los Angeles and New York.
In addition, CJ undertook an expansion of its operations in Fort Dodge, Iowa, in 2014, which then enabled the production of L-Threonine, an amino acid utilized as an additive in livestock feed.
As CJ continues to make investments in food distribution, business acquisition and production within the US, the company’s substantial presence has played a crucial role in its success in the region. This is evident when viewing the growth of its annual sales, which have surged nearly sevenfold from 1.6 trillion KRW (1.3 billion USD) in 2017 to 8.2 trillion KRW (6.4 billion USD) in 2022. Approximately 80% of its revenue comes from the US.
Making A Mark in the American Food Industry
CJ CheilJedang, a leading player in the Korean food products industry, has seen success both in the US and around the world. Its global food brand ‘bibigo’ serves to promote Korean culinary culture, highlighting flavors and cultural values with ‘mandu’ being its key global product. Enhancing its brand recognition within the US, specifically through bibigo, CJ formed partnerships with renowned sports organizations like the NBA’s LA Lakers and PGA Tour tournament, The CJ Cup. By leveraging these sports events, the company aims to further solidify its presence in the US market.
CJ CheilJedang has selected seven Global Strategic Products (GSPs): mandu, cooked rice, chicken, K-sauce, kimchi, dried seaweed and rolls in order to expand its presence in global markets. Recently, CJ CheilJedang announced plans to launch six Korean street food products, including tteokbokki, corn dogs, gimbap, gimmari(fried seaweed rolls), bungeoppang(Korean fish-shaped red bean pastry) and hotteok(sweet pancakes), to the markets in the US, Europe and Asia, offering Korean food enthusiasts the opportunity to savor authentic snacks enjoyed on the streets of Korea.
In 2019, CJ CheilJedang acquired Schwan’s Company, its largest acquisition to date. Due to its leading line of delicious products and successful investment in international markets, CJ CheilJedang achieved a global sales figure of 5.2 trillion KRW (3.9 billion USD) in 2022, marking a substantial 64% increase from 3.1 trillion KRW (2.3 billion USD) in 2019. This outstanding growth can be attributed to its exceptional range of delectable products and successful ventures in the US. Particularly noteworthy is their exceptional performance in the US, where sales reached 4.3 trillion KRW (3.3 billion USD), accounting for an impressive 78% of their global food sales.
CJ Foodville, the operator of Tous Les Jours, a French-Asian bakery café chain, will begin construction on a large-scale bakery factory in the US this year. With 92 locations in key commercial areas across 25 states, including California, New York, New Jersey and Massachusetts, Tous Les Jours has seen a profitable turnaround in the US since 2018. In 2022, it achieved a 50% increase in sales and a 40% increase in operating profit compared to the previous year. By 2030, the company hopes to have 1,000 Tous Les Jours stores open in the US.
Championing Korean Entertainment on an International Stage
CJ ENM, firmly established as a dominant force in the realm of Korean content, has also made significant progress in the entertainment market. The company took its first step into the entertainment business in 1995 by investing 300 million USD (3.9 billion KRW) in the renowned Hollywood studio “DreamWorks SKG”. This marked CJ’s transformation from a food-centric company to a cultural enterprise, gaining recognition in the US for its Korean entertainment content.
Popular Korean reality shows such as “Grandpas Over Flowers” and “I Can See Your Voice” were adapted for the American audience and earned immense attention, achieving top positions in primetime ratings on major US networks FOX and NBC. In 2019, CJ ENM played a pivotal role, both as an investor and distributor, in the groundbreaking success of the film ‘Parasite’, which became the first-ever Korean film to win the Palme d’Or at the Cannes Film Festival, and four Academy Awards at the Oscars 2020.
Recently, CJ has been expanding its presence in the North American market through ongoing partnerships with major OTT platforms and media companies. Notable partnerships include joining forces with Paramount’s Pluto TV and launching the “CJ ENM Selects” channel on Apple TV. In 2022, CJ acquired the renowned US content production company “Fifth Season” (formerly Endeavor Content), reinforcing its position as a leading global production studio and enabling CJ ENM to establish a global production hub at the heart of global pop culture in the US. In addition to enhancing its planning and production capabilities, the company also offers a worldwide content distribution network. The extensive pool of IPs, directors, producers, writers and other creative talents held by both companies are now coming together to act as a catalyst in the international entertainment market.
In the entertainment space, CJ ENM’s KCON, the world’s largest fan celebration of Korean culture and music, is set to make a comeback in Los Angeles this year, providing fans with even more opportunities to indulge in spectacular performances, engaging panels and immersive music experiences.
Driving Forward The The Next Generation of Logistics Operations
CJ’s logistics business in the US is also experiencing rapid growth. CJ Logistics America, headquartered in Chicago, operates over 60 logistics centers and facilities for transportation and forwarding businesses across North America, including the US and Canada.
CJ Logistics America, the integrated corporation formed by the merger of US logistics company DSC and CJ Logistics in 2020, achieved record-breaking sales of 1.3 trillion KRW (1 billion USD) last year, a figure representing more than double the revenue of DSC prior to the merger.
CJ Logistics has also been recently extending its cutting-edge logistics services in the US, introducing innovative technologies such as self-driving transportation robots that have been implemented in South Korea. The company now offers cross-border logistics services in various sectors such as food, consumer goods, cold chain and e-commerce, catering not only to South Korea but also to multinational companies around the world.
In June, CJ Logistics began its partnership with the KOBC(Korea Ocean Business Corporation) for the construction of large logistics centers in the US. Three CJ Logistics America sites in Chicago and New Jersey, totaling 3,875,000 sq ft, which is equivalent to 50 international standard soccer fields, will handle the import and export of cargo. With a $457 million investment, the initiative will strengthen the U.S.-South Korea economic alliance, fostering local investment and job creation. CJ Logistics will provide the land for the project, while KOBC will secure funding for construction.
