Pulmuone Improves Profitability of US Subsidiary... "Tofu and Asian Noodles Drive Growth"

Tofu and Asian Noodles Grow 12% and 21% Year-on-Year
K-snack Category Sales, Including Hot Dogs, Surge by 182%

Pulmuone's U.S. subsidiary continues to achieve external growth and profitability improvement, driven by the K-food craze and the expanding demand for plant-based foods. Pulmuone plans to achieve a turnaround in its overall overseas business within the year through the external growth and profitability improvement of its U.S. subsidiary, which accounts for about two-thirds of total overseas sales, and to actively expand its global business scope by entering the European market.

(From left) Representative tofu products sold by Pulmuone USA in the United States. 'High Protein Tofu', 'Seasoning Tofu', 'Tofu for Topping'.

On the 24th, Pulmuone announced that last year’s sales of tofu and Asian noodles, the main businesses of its U.S. subsidiary, grew by 12.1% and 21.1% respectively compared to the previous year, and sales in the K-snack category increased by 182.2%. Since 2019, Pulmuone USA has achieved an average annual sales growth of 14.4% over five years, and last year, cumulative sales through the third quarter increased by 21.1% year-on-year, maintaining high growth.

The tofu category, which accounts for half of the total sales of the U.S. subsidiary’s main business, recorded its highest-ever annual sales last year with a 12.1% increase compared to the previous year, based on additional customer acquisition in membership channels such as Costco and double-digit growth in retail channels. In particular, December sales increased by 27.3% year-on-year, setting a new monthly sales record. Pulmuone has held the No. 1 market share in the U.S. market for 10 consecutive years since 2016.

(From the top clockwise) Representative Asian noodle products sold by Pulmuone USA in the United States. 'Bokkeum Udon', 'Beef Japchae', Tonkotsu Ramen.

Sales of Asian noodles, the second largest category, also increased by 21.1% compared to the previous year. The flagship product, 'Teriyaki Stir-fried Udon,' was selected multiple times for Costco’s MVM (Monthly Coupon Book Discount Event) and sold more than 5 million units. In addition to existing channels, the product expanded its supply by entering large supermarket chains in the U.S., driving sales growth.

Moreover, the K-snack category, which began full-scale sales last year, grew significantly with a 182.2% increase in sales compared to the previous year. Pulmuone USA quickly launched new products in the K-snack category, including rice balls, hotteok, hot dogs, and tteokbokki, which are popular among American consumers, and sells them through various channels such as large grocery franchise stores, warehouse discount stores, and Asian markets.

Exterior view of Pulmuone's 'Fullerton Tofu Factory' in the United States.

Continuous improvements in profitability through local production infrastructure expansion and logistics cost reduction are also steadily underway. To respond swiftly to local demand for tofu and Asian noodles and improve profitability by reducing logistics costs, Pulmuone expanded the tofu production line at its Fullerton plant and the fresh noodle production line at its Gilroy plant in Western California in 2021 and 2023, respectively, establishing a local response system. As a result, Pulmuone USA recorded an operating loss of 5.53 billion KRW on a cumulative basis through the third quarter last year, reducing losses by about 9.8 billion KRW compared to the same period the previous year. It is expected that the company achieved significant operating profit improvement in the fourth quarter by continuing efforts to improve operations and reduce logistics costs.

This year, Pulmuone plans to further strengthen its market leadership by acquiring new consumers in the tofu category of its U.S. subsidiary and accelerate external growth and profitability by expanding the Asian noodle and K-snack lineups. Additionally, it plans to establish a subsidiary in Europe within the year, using the U.S. subsidiary as a base to actively expand its global business scope.

Joo Gil-su, CEO of Pulmuone USA, said, "We plan to firmly establish our position in the mainstream U.S. market and generate profits by expanding tofu production, managing supply channels, and strengthening logistics responsiveness amid steadily increasing demand. Based on the verified product portfolio from participating in 'SIAL Paris' last year, we will enter the European market and actively expand our global business scope."