FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  February  17,  2023

For Coverage:  February  12 ~ 16, 2023

 

 

‘California Almond Snack Week’ Opened in Korea

https://www.joongang.co.kr/article/25140343  

Summary: California Almond Association opened ‘California Almond Snack Week’ on Feb 13 at Tartine Bakery Hannam.  California Almond Association will show 11 menus of snack using California Almonds until Feb 28. 

 

High Demand for Yak-Gwa (Korean Traditional Snack), Rice Cake and Black Bean among Gen M&Z

https://www.mk.co.kr/news/business/10644760  

Summary: ‘Grandmennials’ is trending among Gen M&Z recently.  ‘Grandmennials’ is a compound word of Grandma and Millennials meaning Millennials with a preference for food or fashion usually consumed by Grandmothers.  Especially traditional Korean snack sales increased due to recent trend.  According to the distribution industry worker, ‘Young generation consider retro culture hip not rusty, they start to consume more on Korean traditional Grandmennials dessert than Western dessert that they are familiar with’.  

 

Emart, Reported 145 Billion Won Business Profit in 2022, 54.2% Drop Compared to 2021

https://www.mk.co.kr/news/business/10644664  

Summary: In 2022, E-mart recorded lower profits.  Although overall sales increased, profitability deterioration caused their business profit to decrease.  In Korea, Starbucks is a subsidiary of E-Mart.  A recall issue of the Starbucks Summer Carry-bag in 2022, high exchange rates, and the amortization and profit/loss from the acquisition of Starbucks and Gmarket contributed to the decreased profits margin for E-Mart. 

 

Premiumization and Scale Expansion Driving the Restaurant Industry 

https://www.hankyung.com/economy/article/202302133371i 

Summary: Major foodservice companies in Korea are expanding store space and improving food quality while reducing the number of stores.  This is partially due to the soaring food ingredient prices and labor costs, prompting companies to focus on operating premium stores, rather than on budget ones.  VIPs, operated by CJ Foodville, has been upgrading its ordinary stores to VIPs Premier, a fancy dining store, and seen sales increases.  Ashley, operated by Elandeats, has also been transforming ordinary stores into Ashely Queens, which serves a wider assortment of menus.  Compared to 2019, the number of stores decreased by 10 percent, but the company saw a sales increase of 35 percent year on year.  On the other hand, some other companies adopt a scale expansion strategy.  Outback Steakhouse, operated by BHC, recently opened large-scale stores in complex shopping malls in new non-capital towns.  Industry insiders say companies choose the scale expansion strategy for 1) the symbolic image of big stores in new towns attracting adjacent consumers, and 2) the higher profitability of operating a limited number of large stores compared to several ordinary stores. 

 

Seoul Coffee Expo is Opening on April 5 at COEX

http://www.foodnews.co.kr/news/articleView.html?idxno=100986  

Summary: B2B Coffee Exhibition ‘2023 Seoul Coffee Expo’ is opening on April 5 at COEX with a theme ‘Blend Your Business’.  Visitors can witness newest trend on coffee industry.  250 companies will be participating using 850 booths in the upcoming event.  Exhibition will not only handle trends about coffee industry but also plans to business network with food industry related staffs.  

 

What is Korean Government’s Action about Hanwoo (Korean Beef)’s Oversupply

https://www.mk.co.kr/news/economy/10640841   

Summary: Korean beef (Hanwoo) farm is experiencing difficulties regarding sharp rise in feed cost and drop in Hanwoo wholesale price.  Government announced to expand market to prevent further drop in Hanwoo wholesale price.  Korean Government decided to initiate ‘Hanwoo Stable Supply and Demand Measure’ cooperating with Korean Agriculture Association (NongHyup), Hanwoo Association and experts in relevant fields.  High market price led to drop in demand causing Hanwoo wholesale price to drop as a result.  Korean Ministry of Agriculture also announced to expand Hanwoo’s export.