Distribution Channels 'Five Below' and 'Miniso' Entry
Supplying Snack Bars for Employees at Google, Netflix, etc.
Considering Factory Establishment if Annual Sales Exceed 40 Billion Won
‘Kkobuk Chip’ is gaining popularity among young consumers in the United States.
Orion announced on the 24th that Kkobuk Chip has recently been stocked in the rapidly growing retail channels ‘Five Below’ and ‘Miniso’ stores.
As the younger generation familiar with Korean culture through K-POP continues to increase demand, from this year, Kkobuk Chip has also been supplied to snack bars at the headquarters of global companies such as Google and Netflix.
Since March, Kkobuk Chip has been available at all 1,598 Five Below stores nationwide in the U.S., and it is also sold at all 52 Miniso stores, a global lifestyle discount retailer.
Called the playground for teenagers, Five Below is a representative low-price discount store chain in the U.S. that mainly sells products priced under $5. Despite the economic downturn over the past five years, its sales have more than doubled, making it a hot place where the 10-20 age group enjoys a ‘treasure hunt-style shopping experience.’
Kkobuk Chip, the first K-food product to enter Five Below, is expanding its sales channels significantly following North American Costco and Sam’s Club, and is expected to generate 20 billion KRW in sales in North America alone this year.
Last year, the sales of Kkobuk Chip produced domestically and exported to the U.S. amounted to 12 billion KRW. Since its export to Korean grocery stores in 2017, it has grown nearly 200 times from about 60 million KRW in six years.
Kkobuk Chip entered warehouse-type discount stores such as Costco in 2019 and Sam’s Club in 2021. The number of stores carrying the product expanded from about 100 stores in the western region to approximately 460 stores nationwide in the U.S. starting in 2021.
An Orion official said, "Store managers where Kkobuk Chip is stocked attribute its popularity to the crispy four-layer texture and the uniquely Korean ‘spicy, sweet, salty, savory’ flavors," adding, "It is a unique snack that young American consumers have never seen before."
In the U.S., nine varieties of Kkobuk Chip are sold, including Corn Soup, Spicy, Spicy Flavor, Seaweed, Choco Churros, Sour Cream & Onion, Truffle Salt, Crunch Cheese, and Mala flavor. The Kkobuk Chip craze is spreading to neighboring countries, with increasing inquiries from buyers, and sales will begin at Costco Mexico within the first half of the year.
Orion is also considering establishing a local production plant if the annual sales of Kkobuk Chip alone exceed 40 billion KRW in the U.S.
Launched in 2017, Kkobuk Chip is Korea’s first four-layer snack, created by combining Orion’s 60 years of confectionery development and manufacturing know-how. It is sold in 23 countries including the U.S., the homeland of snacks, as well as Australia, the U.K., and Japan. It is also popular in local markets through local production in countries such as China, Vietnam, and India. As of March this year, the global cumulative sales exceeded 480 billion KRW, growing into a global snack brand following ‘Choco Pie.’
An Orion official said, “As it is recognized as a popular snack even in global corporate snack bars, it is emerging as a representative K-snack,” and added, “Based on differentiated product strength tailored to local consumer tastes, we will build a ‘Kkobuk Chip Snack Road’ connecting all continents from Asia, Europe, to North and South America.”
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