[Asia Economy Reporter Jeon Jinyoung] CU announced on the 7th that it is now tackling the rising cost of breakfast tables.
On the 6th of this month, CU released the fifth and sixth products in its ultra-low-price PB line, HEYROO’s Deuktem series: ‘Cereal Deuktem’ and ‘Roasted Egg Deuktem.’
Since February last year, starting with HEYROO Rice Deuktem priced cheaper than gum, CU has been offering essential Korean table staples such as ramen, kimchi, and eggs at unprecedented prices.
The biggest merit of Cereal Deuktem is also its price. The 450g large-capacity product costs only 3,200 won, which is about 50% cheaper per gram compared to regular NB products.
Although the price was cut by nearly half, the quality was carefully maintained since these products are meant to be enjoyed by the whole family.
Cereal Deuktem emphasizes a sweet and savory taste by increasing the corn content to over 74%. The corn is oven-baked rather than fried, preserving a crispy texture while reducing calorie concerns. It was designed with the most basic flavor to target modish consumers who use cereal as a topping on soup, ice cream, and more.
Additionally, 11 types of vitamins and minerals were added to make cereal a balanced meal on its own.
Eggs, recommended as a simple and nutritious breakfast menu, are also available through the Deuktem series.
Roasted Egg Deuktem is a product characterized by its deep and savory flavor, made by roasting fresh domestic eggs produced by carefully selected poultry farms and aging them for three days. The 10-egg pack is priced at 4,900 won, offering a quantity that is easy to store for households from single-person to four-person families. The price per egg is about 50% of that of the typical 2-egg processed eggs sold at convenience stores.
Despite ongoing raw material price increases, CU can offer PB products that capture both price and quality thanks to a strong partnership with small and medium-sized suppliers.
BGF Retail collaborated with small and medium suppliers who have the capability to produce quality products but lack brand recognition and sales channels, actively supporting product planning, marketing, logistics, and quality control to create the Deuktem series.
This Cereal Deuktem was also proposed by BGF Retail to suppliers targeting the rapidly growing cereal demand as people stayed home more after COVID-19. The suppliers shared the intention to stabilize prices, enabling the launch of products at unprecedented prices.
In fact, the Deuktem series products not only contribute to stabilizing food prices but also have doubled the sales of partner companies, greatly supporting the survival of domestic small and medium enterprises.
Kim Goni, MD of the Snack Food Team at BGF Retail, said, “PB products, which were mainly popular in convenience store main categories like snacks and beverages, are now expanding to grocery items such as instant rice and ramen as the trend of nearby shopping grows. CU plans to continue introducing reliable, cost-effective products through the Deuktem series by joining forces with capable domestic small and medium suppliers.”
Meanwhile, sales of the CU HEYROO Deuktem series last month jumped about 68.9% compared to the end of last year.
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