Samsung Welstory Collaborates with Bakery Specialty Store and Third Party
Launches Milk Fresh Cream Donuts and More
CU, a convenience store operated by BGF Retail, announced on the 22nd that it will introduce bakery products through a three-way collaboration with Samsung Welstory, a meal service and food distribution company, and a bakery specialty brand.
This is the first time that a convenience store has planned exclusive products for distributors in partnership with a specialized food and beverage company with a business structure focused on business-to-business (B2B) transactions.
The first brand the two companies have partnered with is the premium dessert cafe 'Knotted.' Knotted, which has intermittently collaborated with Samsung Welstory on events, will now meet CU through this project to exclusively launch donut products in offline distribution channels.
The new products, 'Knotted Signature Milk Fresh Cream Donut' and 'Knotted Classic Vanilla Cream Donut' (each priced at 3,500 KRW), will be sequentially released at CU stores starting from the 23rd. These products will be available not only at CU stores nationwide but also as takeout menu items at Samsung Welstory’s business locations across the country.
Through this collaboration, CU and Samsung Welstory expect to expand collaboration opportunities with specialized bakery brands. From the bakery brands’ perspective, there is an advantage in increasing product distribution channels to nationwide CU stores and Samsung Welstory’s food service business sites.
CU and Samsung Welstory plan to continue increasing collaborations with famous bakeries nationwide to consistently offer high-quality bakery products.
CU’s strategy to target the convenience store bakery market through partnerships with major food companies is driven by the growing demand for convenient and cost-effective convenience store bread in an era of high inflation. Looking at CU’s year-over-year sales growth rate for bread by year: ▲11.7% in 2021 ▲51.1% in 2022 ▲28.3% in 2023 ▲31.4% from January to July 2024, showing an increasing trend every year.
CU is releasing differentiated bread products, including its own bakery brand 'Bakehouse 405.' Launched in August last year, Bakehouse 405 surpassed 10 million units in cumulative sales by last month. The success is attributed to raising quality to the level of bakery specialty stores through overseas technology partnerships and the know-how transfer from master bakers, while maintaining reasonable prices in the 2,000 to 3,000 KRW range, offering excellent cost-effectiveness.
In March, CU jointly planned with CJ CheilJedang to launch premium refrigerated bread using CJ CheilJedang’s representative brands Bibigo, Hetbahn, Baeksul, and Matbam. Utilizing Bibigo’s dumpling filling, Hetbahn’s rice grains, Baeksul’s seasoning sauce, and Matbam’s chestnut dice, the products have sold over 200,000 units cumulatively.
Joonhyung Cho, head of the snack food team at BGF Retail, said, "This project allows not only existing CU customers but also employees using in-house cafeterias to experience high-quality bakery products." He added, "Going forward, CU will continue to introduce differentiated products that can create new demand through collaborations with various brands regardless of industry."
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