Expansion of Schwan's Pizza Factory in Salina, Kansas, USA
Securing 90,000㎡ Area... Accelerating Expansion of US Food Business
CJ CheilJedang announced on the 21st that it has expanded the Schwans Pizza factory in Salina, Kansas by approximately 40,000㎡ to establish the world's largest frozen pizza production facility in the United States and strengthen its food business competitiveness.
With this facility expansion, the Schwans Salina pizza factory now secures the world's largest frozen pizza production facility with a total area of 90,000㎡ (about 12 soccer fields). This site produces representative products of Schwans, a U.S. frozen food company acquired by CJ CheilJedang in 2019, including Red Baron and Tony's.
Additionally, CJ CheilJedang is expanding the logistics center within the Salina factory. The logistics center, scheduled for completion in 2025, will be responsible for the distribution of K-food products including Bibigo, along with frozen pizzas, across the United States.
Earlier, on the 19th (local time), a completion ceremony was held with attendance from David Toland, Lieutenant Governor of Kansas, local officials, and key executives of Schwans.
Dimitrios Smirnios, CEO of Schwans, stated, "To proactively respond to the rapidly increasing demand for frozen pizza in the U.S., we have significantly increased the production capacity of the Red Baron brand. Based on the world's most advanced manufacturing facilities, we will secure a dominant position in the pizza market while contributing to job creation and revitalization of the local economy."
CJ CheilJedang's U.S. food business sales in the first quarter of this year increased by 18% compared to the same period last year. Schwans recorded sales of approximately 2.2 trillion KRW in 2019, the year CJ CheilJedang acquired the company, and surpassed annual sales of 3 trillion KRW last year, three years later.
Regarding frozen pizza, a key product alongside K-food, the leading brand Red Baron holds a market share of 19.4%, narrowing the gap to just 1 percentage point behind Nestl?'s DiGiorno, the number one product.
A CJ CheilJedang official said, "Schwans serves as a forward base for expanding our global food business and greatly supports the scaling up of K-food. We will continue to steadily enhance our capabilities to become the 'number one food company in the U.S.'."
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