Samyang Foods Stock Soars, Drawing Attention to Food and Beverage Sector
Last Year's Sauce Exports Reach Record High
Sempio Foods: "Delighting the World with Our Flavors"
As K-food gains popularity worldwide, including in the US and Europe, there is a renewed evaluation of food and beverage stocks. While shares related to ramen and frozen gimbap surged, quick investors sought relatively undervalued food and beverage stocks. Looking at last year's processed food export trends, the increase in ramen, kimchi, and sauces stood out. The rise in exports of sauces such as gochujang and soy sauce is why Sempio Foods is attracting attention.
According to the financial investment industry on the 24th, Samyang Foods' stock price rose 233% in the second quarter of this year. Wooyang, which exports hot dogs and frozen gimbap to the US, also saw its stock price increase by 126%. During this period, the KOSPI rose 1.4%, and the food and beverage sector index increased by 39.3%. Sempio Foods' stock price has risen 27.7% since the beginning of this month. The foreign ownership ratio also increased from 3.45% to 4.66%.
Starting with Buldak Bokkeum Myun, interest in Korean food culture has grown, leading to increased exports of basic sauces such as soy sauce and gochujang. Korea's total sauce exports reached $384 million last year, up 6.2% from the previous year, marking an all-time high. The cumulative export amount until April this year is $130.93 million, continuing the growth trend. By country, the US accounted for the largest export market with 23%.
Shim Eun-joo, a researcher at Hana Securities, emphasized, "Last year, the expansion of the 'health' image and increased interest in K-food based on the Korean Wave led to record-high exports of Korean processed foods to the US." She added, "Kimchi and sauces, which have a somewhat strong Korean identity, increased by 37.4% and 32.9% respectively compared to the previous year." She further analyzed, "The rise of gochujang could open the possibility for it to become a second oyster sauce or Sriracha sauce," and "K-food is expanding from ramen to street food."
Sempio Foods has continuously invested in overseas expansion for a long time. In 2000, it established Sempio Food Service (SFS) to secure distribution networks in the US. Sempio Foods is enhancing its recognition in overseas markets through a thorough localization strategy to realize its core value of 'Delighting the world with our taste.' Products like pea soy sauce and organic gochujang have been recognized for their excellence, winning the Food and Beverage Innovation (FABI) and 'Taste Innovation Show' awards. Meat marinade sauces, soy sauce, gochujang, noodles, and seaweed are increasing their market presence and sales in the US. The organic Yeondu, introduced through soybean fermentation technology, obtained the Europe-exclusive V-Level vegan certification. Sales in the European region showed high growth compared to the previous year.
Sempio Foods' overseas business is led by Park Yong-hak, executive director and eldest son of Park Jin-sun, the head of Sempio Foods. Demonstrating capabilities through overseas business is expected to gain shareholder support and accelerate succession processes. To meet K-food demand, a large-scale production plant is being built in Jecheon, Chungbuk. As searches for 'Korean food' increase on online channels in the US, including Amazon, Sempio Foods' brand exposure is also becoming more active.
The popularity of K-food is likely to establish itself as a culture rather than a temporary trend. Jang Ji-hye, a researcher at DS Investment & Securities, analyzed, "K-food is entering major channels beyond Korean supermarkets in each country," adding, "The increasing variety of popular K-food items is a positive factor."
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