Market Information > Food News Clipping
Food News Clipping
March 21 - 25, 2022
FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date: Friday, March 25, 2022
For Coverage: March 21 ~ 25, 2022
Oyster and Abalone Shells Used as Food Additives
Summary: The Ministry of Oceans and Fisheries is planning to allow oyster and abalone shells to be recycled as materials for limestone substitutes, cosmetics, pharmaceuticals and food additives. The legislation was announced on March 23, 2022. Fishery by-products such as shells from oysters, abalone, mussels and clams were previously only recycled as raw materials for building materials, fertilizers, and feed. The Ministry of Oceans and Fisheries said that they are promoting transformation of fishery by-products into high value added resources.
Delivery Cost Increases … Restaurants are Developing their Own Apps
Summary: Due to the recent increase in delivery app fees, the food service industry turned to developing their own delivery apps. They provide various customer type benefits to improve sales at franchise outlets. Pizza Alvolo provides customers that sign up for the company’s app with a 5,000 won discount coupon and free menus. It also introduced a membership system to provide bigger benefits for customers that use the company’s app frequently. CJ Foodville launched an integrated app for all of its restaurant franchises named ‘Chef Go’. Customers can make food delivery orders or purchase Restaurant Meal Replacement (RMR) products from CJ Foodville’s restaurant brands.
Lotte Confectionery and Lotte Food Merge … A Food Company with Combined Sales of 3.7 Trillion Won
Summary: Lotte Confectionery and Lotte Food will merge, becoming a food company with combined sales of 3.7 trillion won. The merger will be completed after receiving approval at the general shareholders’ meeting on May 27. The two companies explained that the merger will create a comprehensive food company that can actively respond to the rapidly changing food and beverage business environment and step forward as a global food company. After the completion of the merger, Lotte Food, which was previously focused on the domestic food market, will facilitate overseas expansion utilizing Lotte Confectionery's global corporate network. Lotte Confectionery will reduce overlapping parts in the business management structure to increase efficiency.
Sales at Franchise Outlets Decreased Due to Covid-19
Summary: Sales at franchise outlets decreased 5.5 percent in 2020, mainly due to the sales decline at Korean food restaurants (down 18.1 %) and coffee shops (down 15.1 %). According to the Fair Trade Commission, sales at franchise outlets averaged 319 million won in 2020. Average sales at dine-out franchise brands declined 9.0% to 280 million won in 2020. While most of franchise outlets suffered from a sales decline during the Covid-19 pandemic, sales at chicken franchises rose on the back of the popularity of food delivery apps. Sales of health food (up 25.2%) and agricultural products (up 37.6 %) increased in 2020 due to the increased interest in health during the pandemic.
Korea Food Industry Association (KFIA) will Undertake the “Use By” Date Labeling System
Summary: The Korea Food Industry Association (KFIA) will undertake the “use by” date labeling system with a budget of 2.5 billion won starting this year. An association official said that it will prepare safety indicators to set the recommended consumption period in consideration of characteristics such as product type, sterilization, and storage temperature. They will first start with processed food products that have relatively high consumption levels. Lee Hyo-Yul, president of the Korea Food Industry Association, said they seek to enhance the competitiveness of domestic food products in the global food market by applying the “use-by” date rather than the expiration date, since some food products can be consumed even after the expiration date has passed.
Coffee Imports Reach Record in 2021
Summary: Coffee imports surpassed 1 trillion won in 2021 for the first time. According to the Korea Customs Service and the food industry, coffee imports reached 916.48 million dollars last year, up 24.2 % from 2020. The largest coffee exporter to Korea was Switzerland (130 million dollars), followed by Columbia (128 million dollars) and Brazil (116 million dollars).
All-Purpose Seasoning is on the Rise
Summary: Along with the home cooking trend, seasoning for all purposes such as tuna sauce is on a rise. All-purpose seasoning sales surpassed that of traditional sauces in hypermarkets. According to E-mart on March 21, sales of all-purpose seasoning surpassed 20 billion won in 2021 for the first time. Its share in total seasoning sales was 30.5% last year, making it the top ranked seasoning followed by soy sauce (30.1 %), gochujang (29.6 %), and soybean paste (9.8 %). Tuna sauce sales increased 54.4% in 2021, leading the overall sales increase.
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