"Global Category 'Kimchi' Centered Korean Food Globalization"
Daesang announced on the 19th that it has acquired the American food company 'Lucky Foods.'
Lucky Foods, established in 2000, is an Asian food specialty company located in Oregon, USA. Lucky Foods' 'Seoul' Kimchi accounts for about two-thirds of its overall business, and it is diversifying its product range with various items such as sauces and spring rolls.
In March, Daesang carried out a paid-in capital increase of 38 billion KRW for its subsidiary DSF DE, and with the investment funds secured through this, it acquired 100% of Lucky Foods' shares and all its facilities. Taking this opportunity, Daesang plans to expand its business in key global categories including kimchi, sauces, and home meal replacements (HMR).
The current U.S. kimchi market is growing mainly through mainstream channels. Daesang will also invest in factory expansion and equipment for Lucky Foods. It plans to double the production capacity of 'Seoul' Kimchi, which has achieved significant sales growth since COVID-19, and expand the factory's automation facilities. Additionally, Daesang intends to strengthen its sales organization, marketing, and research and development (R&D) to actively expand its business in 'Seoul' Kimchi, sauces, spring rolls, and more.
Daesang has also set its U.S. business vision for 2030 as "an Asian grocery company encountered in every American household," and plans to actively pursue new businesses by establishing core operations across all categories including frozen, refrigerated, and ambient foods, focusing on Korean foods such as kimchi and gochujang.
Lee Kyung-ae, Executive Vice President of Daesang's Global Food Business, said, "This acquisition has accelerated the expansion of the U.S. kimchi market," adding, "We will create synergy in the local business by leveraging Lucky Foods' product capabilities and infrastructure."
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