Major Global Retailers Including France's Leclerc and Carrefour Enter
US Second Factory Marks 2 Years, Expanding Global Production Capacity
Nongshim is set to actively target the French and European Union (EU) markets by expanding its sales network with major French retailers. To enhance its global supply capacity, the company plans to expand its domestic export-only factory and the production line at its second factory in the United States.
Strengthening Close Marketing in France Following Entry into Major Retailers
Nongshim announced on the 14th that starting next month, it will officially enter two major French retailers, ‘Leclerc’ and ‘Carrefour,’ by significantly increasing the supply volume of key ramen and snack products such as Neoguri and Soon Ramen (vegetarian ramen), in addition to the existing Shin Ramyun. Leclerc and Carrefour are large retailers holding over 40% of the market share in France, and Nongshim plans to actively conduct marketing to expand consumer touchpoints locally by strengthening its distribution network in France.
Furthermore, Nongshim plans to enhance brand awareness by participating in large-scale events such as the Paris Olympics. First, it will operate a Nongshim-exclusive booth at the ‘Korea Expo 2024’ held in Paris for three days starting on the 24th of this month, and at the ‘K-Street Festival’ held for two days from the 22nd of next month, introducing products and providing sampling to local French consumers to boost brand recognition. Additionally, during the Olympics, Nongshim plans to collaborate with major local retailers in France to operate pop-up stores within stores, expanding opportunities for consumers to experience the brand.
Leveraging the entry into major French retailers, Nongshim intends to target the entire southwestern European region, including Spain and Italy. It also plans to expand its distribution network in Northern European countries such as Sweden and Denmark through influential local partners. Nongshim is also pursuing the establishment of a European sales corporation to analyze trends across Europe and carry out locally optimized marketing activities.
Expanding Global Supply Chain through Export-Only Line and Expansion of U.S. Second Factory
Nongshim plans to solidify its foundation for global market penetration by expanding its global production capacity. To increase supply in Europe and Asia, it is considering establishing an export-only factory in Korea, and the U.S. second factory will add a high-speed cup noodle production line in October this year to actively respond to local demand for cup noodles.
The Nongshim U.S. second factory, which began full-scale operations in May 2022 and is celebrating its second anniversary this year, plans to start operating the new high-speed cup noodle line as early as October. The new line will be capable of producing square cup noodles, a form familiar to U.S. consumers, alongside the existing round cup noodles such as Big Bowl Noodles and Bowl Noodles. Once the line is operational, the annual production capacity of the U.S. corporation will increase by about 20%, from 850 million servings to 1.01 billion servings.
This expansion of the cup noodle line at Nongshim’s U.S. second factory is a decision made to meet local demand for cup noodles. In fact, the proportion of cup noodle sales at Nongshim’s U.S. corporation accounted for about 63% as of 2023, representing more than half of total sales. Through this expansion, Nongshim plans to not only increase supply of existing brands such as Shin Ramyun and Yukgaejang Bowl but also broaden its market presence by expanding into stir-fried type products preferred by local consumers.
Nongshim’s domestic export-only factory is expected to begin detailed planning, including site selection, as early as this year. Considering export logistics efficiency, Nongshim plans to review various candidate sites, including existing factory locations such as Pyeongtaek and Busan.
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