FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  September 15,  2023

For Coverage:  September 2 ~  15, 2023

CJ Foodville establishes a factory in the United States...Georgia Department 

https://n.news.naver.com/mnews/article/277/0005309501?sid=103 

Summary: Tous Les Jour, a subsidiary of the Korean corporation CJ Foodville, is accelerating its expansion efforts in the United States. They have announced their intention to invest in a factory located in Georgia as part of their ambitious goal to establish 1,000 stores across the United States by 2030. This decision to construct a factory in the U.S. comes with a substantial investment exceeding 50 billion KRW, which will result in the creation of a 90,000 square meter facility. The construction is expected to be completed by 2025, with the capacity to produce over one hundred million cakes and frozen flours used in bread production. This facility will serve as a key production hub in North America.  

While CJ Foodville considered various locations, including Texas, they ultimately selected Georgia as an ideal site for their factory. Georgia offers exceptional market accessibility and is home to numerous food companies, making it a strategic choice. To support their operations, CJ Foodville plans to hire 300 local workers for the plant. An associate of CJ Foodville expressed their vision to become a globally beloved bakery brand by offering a diverse range of bread and cakes while showcasing the excellence of K-Bakery. 

"Food Commodities in High Seasonal Demand, 5% Cheaper than Last Year"... Korean Government supplies 160,000 tons from 7th 

https://n.news.naver.com/mnews/article/021/0002592251?sid=101 

Summary: In an effort to enhance the well-being of citizens, the Korean government has announced a series of measures to ensure that the prices of the top 20 commodities in high seasonal demand are 5 percent lower compared to the previous Chuseok (Korean Thanksgiving) season. To support this initiative, the government has allocated 67 billion KRW for agricultural and fishery products and an additional 80 billion KRW for seafood. 

For products known for their price volatility, such as chicken, apples, and pears, the government is taking steps to increase their supply. Specifically, the government plans to make available 30,000 tons of chicken at a reduced tariff rate and 16 tons of apples and pears.  

Furthermore, considering concerns among consumers regarding seafood products possibly contaminated by water discharged from Fukushima, which may lead to low demand in seafood products, the government is offering discounts of up to 60 percent to facilitate the purchase of seafood products, making use of an 80 billion KRW emergency fund to issue payback coupons to customers when they buy seafood items. The government emphasizes its commitment to closely monitor the situation daily and pledges to respond swiftly to any unexpected supply challenges that may arise. 

Samyang Foods Joining '1Trillion KRW Group' Due to the Popularity of Ramen(Buldak)...and Producing Series of New Products 

https://n.news.naver.com/mnews/article/018/0005568043?sid=101 

Summary: The popularity of Buldak, produced by Samyang Food, continues to surge, and the estimated sales are expected to reach 1 trillion KRW. In the latter half of this year, the company aims to expand its sales, with its focus on the United States and China. They are also diversifying their product range to satisfy various customer preferences. 

Industry experts in the banking sector predict that Samyang Food's 2023 sales will be 17 percent higher than the previous year. The company's exportation rate currently accounts for approximately 3/4 of its sales, due to continuing interest from foreign consumers, notably in the US and China. This positive trend has prompted the company to explore new sales opportunities in markets like India and Europe. 

A researcher from Hanhwa Investments is eagerly anticipating Samyang Food's entry into China's significant retail markets, including convenience stores. Additionally, there is optimism about Samyang's potential to secure sales in prominent US retailers like Walmart, with the possibility of entering Costco in the coming months. 

Furthermore, Samyang Food is prioritizing the development of specialized export brands. They have introduced a new product called Tangle Ramen, featuring dried noodles, which will be exclusively provided to North American consumers. To facilitate this expansion, the company is planning to construct additional manufacturing plants. 

The Chicken, which was Sold 3 Million Times in Korea, is Targeting U.S. this time 

https://n.news.naver.com/mnews/article/003/0012071944?sid=101 

Summary: Genesis BBQ Group, a renowned Korean chicken franchise, is introducing its successful Korean menu to the American market under the name "Caribbean Spice." This is now available in 250 restaurants across 25 states. The decision to expand its availability will be based on consumer feedback and reports. In Korea, the "Caribbean Spice" menu has enjoyed remarkable success, generating sales of 250 million KRW within just two weeks of its launch, and becoming a consistent top-seller for BBQ. 

Using a special sauce, BBQ expects the young United States MZ generation to take a keen interest in this menu. They also aspire for it to contribute to the broader adoption of the 'Korean Chicken Trend' in the United States. Additionally, BBQ has plans to develop more menu options that show the delectable flavors of Korean chicken. 

"Saero" Soju's sales surpassed 100 billion KRW in a year 

 https://www.mk.co.kr/news/business/10823728 

Summary: In September 2022, Koreans were introduced to the first-ever zero-sugar soju, known as 'Saero.' Within a year, it achieved sales exceeding 100 billion KRW. The food industry reported the sale of 180 million bottles of Saero to consumers, giving the brand a 21 percent share in the soju market and a significant 30 percent share of Lotte Chilsung's soju sales. 

What sets Saero apart is not just the absence of sugar; the brand has also used various distinctive marketing strategies to connect with consumers. Unlike traditional soju promotions that rely on celebrity endorsements, Saero has opted for animated designs to capture customer attention. Additionally, the bottle design, featuring unique colors and improved grip, is 180 percent different from conventional soju bottles. This factor has played a pivotal role in attracting the attention of the MZ generation. 

"Choose Your Own Bread..." "It became a neighborhood bakery in the U.S."

https://n.news.naver.com/mnews/article/014/0005068327?type=journalists 

Summary: The key differentiating factor that has proven successful for the Korean bread brand Paris Baguette in the United States is its approach of allowing customers to personally select their bread using trays and tongs. This approach aligns with the American culture of customization. As of January 2023, Paris Baguette, which is owned by SPC, has expanded to 100 locations in the U.S. and has received significant appreciation from American consumers. 

In the United States, it is customary for customers to queue up and place their orders with bakery employees. However, the convenience of choosing your own bread using trays is a departure from the norm and has been well-received. Paris Baguette's objective in adopting this approach is to offer customers the best experience, accessibility, a wide range of high-quality products, and more. Thanks to these efforts, their sales in the U.S. are consistently four to five times higher than those in Korea. 

Traditionally, American bakeries have focused on a limited selection of products like donuts or bagels. In contrast, Paris Baguette offers an extensive menu of approximately 300 different products. This variety is a key strength that appeals to customers. 

Looking ahead, Paris Baguette has ambitious plans to further expand its bakery, with the goal of reaching 160 locations by the end of the current year and a target of 1,000 locations by 2030. 

"You Can Buy as Much Cheese as You Need at Department Stores and Marts in the Future."

http://www.foodnews.co.kr/news/articleView.html?idxno=104402 

Summary: On the 8th, the Ministry of Food and Drug Safety, announced a legislative amendment permitting the sales of cheese in segmented portions. This change comes in response to evolving dietary habits in Korea, where cheese consumption patterns are also undergoing transformation. Given the generally good state of food industry sanitation in Korea and observing the practice of selling divided cheese in many other countries, the Ministry of Food and Drug Safety intends to adopt a similar approach.  

This move aims to alleviate the burden on consumers by allowing them to purchase smaller quantities of cheese and expanding their options for variety. Consequently, it creates a positive cycle by providing suppliers with more distribution channels and opportunities to increase sales. 

"Food and Food Service Industry Agree with Maintaining Consumer Prices Prior to Chuseok…” But Food and Restaurant Industries Suffer from 'Inner Pain'  

https://n.news.naver.com/mnews/article/421/0007041106?sid=102 

Summary: The Korean government has requested stable pricing in the food and food service industry in anticipation of the upcoming Chuseok holiday. While these businesses have agreed to the government's request, they are currently facing significant pressures. Costs related to key ingredients like milk, olive oil, poultry, and delivery app service fees have all been on the rise. Recent statistics indicate a 6.3 percent increase in consumer prices for processed foods and a 5.3 percent increase for food service restaurants. 

Despite their agreement with the government, the food and food service industry are uncertain about how long they can maintain these stable prices. They are concerned that they might need to make slight price adjustments to withstand. The milk ingredient sector is feeling the impact as they were subjected to government pressure earlier than the other sectors, leading to a decline in sales. Meanwhile, the food service industry is grappling with escalating delivery costs made from mobile applications, and the price of olive oil has surged fourfold. Considering these challenges, they are requesting government assistance to lower ingredient costs and ensure their pricing stability. 

"Spending 4.2 KRW to Get Rid of It?... Let Us Take It" Blue Crab is Delectable Food in Korea 

https://n.news.naver.com/mnews/article/277/0005312211?sid=103 

Summary: In Italy, a new environmental issue has arisen as invasive crabs are causing disruption in the sea. These crabs, known scientifically as "Portunuspelagicus" but commonly referred to as "blue crabs," are disrupting Italy's ecosystem. Originally native to the Atlantic Ocean, they have recently started appearing in the Mediterranean Sea, posing a threat to the local environment. Of particular concern is their preference for clams, a staple in Italian cuisine. 

To combat the blue crab invasion, Italy has allocated 2.9 million euros for their removal, and they are offering rewards to those who assist in their eradication. This phenomenon resembles a previous approach adopted by Tunisia, which decided to export these troublesome blue crabs to Korea, a country where they are widely consumed as a delicacy. In the realm of crab exports to Korea, China holds the top position, followed by Tunisia. Italy has also chosen to export these blue crabs now. The blue crab recognized as one of the fiercest predators in the Italian Sea, goes to Korea, where there is a high demand for them. 

"Enjoying Malatang and Tanghulu..." Chinese Food Trend in Korea Causes 'Scary Warning'

https://n.news.naver.com/mnews/article/015/0004890533?sid=103 

Summary: Chinese foods are experiencing a surge in popularity in Korea, particularly dishes like Malatang and Tanghulu. Malatang is a spicy Chinese soup, while Tanghulu consists of sugar-coated fruits. However, there are growing concerns about these foods being excessively intense in flavor and potentially unhealthy. Online keyword analysis indicates a 10% increase in searches for 'Malatang' compared to the previous year. 

Malatang is prepared using highly spicy spices, oil-based broth, and various vegetables. Its intense spiciness and richness often lead to consumers feeling unwell after consumption. Additionally, there are concerns about the hygiene standards in the preparation of Malatang ingredients. The Food and Drug Ministry has reported instances of some restaurants violating regulations by using mushrooms contaminated with agricultural pesticides. 

In contemporary Korea, trying spicy foods has become somewhat of a challenge, with new terminology emerging to describe who can handle spiciness better. Professor Lee, an expert in consumer psychology, emphasizes the importance of consumers recognizing the potential health risks associated with consuming excessively spicy foods. 

Delivery Food is also 'Tanghulu' Craze...47 Times Increase in Search Volume in 6 Months

https://n.news.naver.com/mnews/article/079/0003812210?sid=101 

Summary: Tanghulu, a sugar-coated fruit treat, is not only gaining attention on social media but is also experiencing a surge in food delivery orders, particularly among the younger generation. According to a trend analysis conducted by Baemin, a Korean food delivery platform similar to Uber Eats, searches for Tanghulu have increased by a staggering 47 times compared to this January. Notably, it didn't even rank among the top choices last year. However, as its popularity on social media grew, so did the general interest in Tanghulu. 

Another trending food item is 'Mala-rose,' a fusion term combining 'Malatang,' a spicy Chinese soup, with 'Rose,' a creamy and spicy sauce. Additionally, the consumption of zero-calorie drinks is on the rise. 

Korean food preferences also tend to shift depending on the circumstances. For instance, as the weather gets colder, the consumption of 'yellowtail amberjack' increases. Furthermore, there is a growing number of consumers seeking out 'fish-shaped pasty,' a warm pastry that is filled with sweet red beans. During Chuseok, the Korean Thanksgiving holiday, there is an increase in people spending money on food. Lastly, when the national soccer team plays, Koreans order chicken about 40 percent more than during regular months. 

BBQ Introduced as "K-Chicken Representative" in the U.S. restaurant magazine

https://n.news.naver.com/mnews/article/016/0002197020?sid=101 

Summary: QSR, a prominent American restaurant magazine, has introduced BBQ, a Korean chicken brand that is rapidly growing in popularity within the United States. QSR is well-regarded for its coverage of North American food service businesses. According to QSR, BBQ has earned a reputation for offering a crispier and more delicious flavor compared to traditional American-style chicken. Notably, BBQ has seen an astonishing 400 percent increase in the number of its outlets. 

QSR further noted that many food service brands that expand to the United States often modify their cuisine to cater to American tastes. However, BBQ refuses this trend by maintaining consistent quality regardless of the country in which they operate. They even apply the same educational approach to franchise owners worldwide, considering it a key factor in their success. 

Learning 'Sustainability' for Next Generation in Major Soybean Producer U.S

http://www.foodnews.co.kr/news/articleView.html?idxno=104508 

Summary: The U.S. Soybean Export Council (USSEC) has assembled a group of delegates to help them gain practical experience in Ohio, which happens to be the largest soybean-producing region in the United States. This initiative also involved the participation of the first-ever soy-food masters, who received this designation in 2022. During their visit, they explored the latest developments within the soybean industry and had the opportunity to tour the Consolidated Grain and Barge (CGB) River Elevator, a facility responsible for shipping around 7 million tons of soybeans. They were able to observe the entire supply chain process from the initial stages to the shipping process. 

CGB is dedicated to promoting sustainability and follows a set of five guiding principles, including industrial collaboration, assessment of supplier trustworthiness, corporate social responsibility (CSR), supply chain flexibility, responsibility regarding carbon emissions, safety measures, and more. As part of their sustainability efforts, the delegates also had a visit to a non-genetically modified organism (GMO) bean farm managed by Blue Grass. This farm is committed to providing healthy non-GMO beans to markets around the world. Additionally, the delegates made a stop at Ohio State University to explore strategies for integrating sustainability into American farming practices. Thanks to the support from the U.S. Department of Agriculture (USDA), this program became a reality. 

The CEO of USSEC Korea pointed out that the selection of delegates was based on their passion for soy-based foods. He stressed the importance of embracing sustainability, to secure a better future for the next generation. He also expressed his wish that soybeans and beans, known for their unique attributes, would find diverse applications among various consumers.