China, Russia, and Vietnam Are Top Three Export Markets for Choco Pie
Shared History of Weak Light Industry in Former Communist Bloc
Choco Pie’s Success Driven by Its “Premium Snack” Image
Orion Choco Pie, with over 4 billion units sold annually, is a leading export snack, with overseas sales accounting for 84% of its total revenue. China, Russia, and Vietnam rank first to third in overseas sales. These countries share the commonality of having been communist states or still maintaining socialist systems. During the Cold War, communist countries focused on developing heavy industry, which resulted in the slow advancement of light industry and underdeveloped food industries, leading to low quality and limited production of snacks. When Choco Pie was first exported to China, Russia, and other countries in 1993, it became one of the first foreign snacks experienced by citizens in these communist states.
So Popular, It's Placed on Family Altars
As of last year, Choco Pie's global sales reached 583 billion won, with 84% coming from overseas markets. By overseas subsidiary, China recorded sales of 191 billion won (32.7%), ranking first globally, followed by Russia (28%, 163 billion won) and Vietnam (20.5%, 120 billion won).
In Russia, approximately 1.6 billion Choco Pies were sold last year, accounting for 40% of global sales. Despite Western economic sanctions imposed on Russia following the Russia-Ukraine war, the popularity of Choco Pie has remained strong. In Vietnam, Choco Pie is so beloved that it is given as a holiday gift or even placed on family altars. Choco Pie holds the number one market share in the overall Vietnamese pie market.
Communist Countries with Underdeveloped Food Industries
China, Russia, and Vietnam, all captivated by Choco Pie, share a history as former or allied communist bloc countries under the Soviet Union. This historical background provided an opportunity for Choco Pie to showcase its competitive edge.
The former Soviet Union, when establishing its first five-year economic development plan in 1928, was obsessed with industrialization, particularly the development of heavy industry and military sectors, while investments in light industry essential for daily necessities were neglected. As a result, when the Soviet Union collapsed and partial market economy reforms such as price liberalization were introduced in the early 1990s, Russia lacked the capacity to produce daily necessities, leading to a rapid surge in prices.
A Soviet Union five-year plan propaganda poster distributed in 1931. It contains the message of reducing the five-year goal to four years through the passion of workers. Internet Archive
Choco Pie was first exported to Russia in 1993 during this period of turmoil, and, alongside McDonald's and Coca-Cola, became recognized by Russian citizens as a "taste of freedom." That same year, China adopted the "socialist market economy" as its new policy direction and opened its market to foreign capital. Choco Pie was quickly exported to China as well, pioneering the pie-type snack category in a local confectionery market that was still underdeveloped.
The Vietnamese market was entered in 1995, two years later than Russia and China. An Orion official explained, "When we first entered Vietnam, the confectionery market was in poor condition. Unlike in Korea, snacks were sold in bulk packaging, raising hygiene concerns, and the quality was poor. Choco Pie introduced individually wrapped packaging in Vietnam, solving these issues."
Once Used as Advance Payment Goods Alongside Alcohol and Cigarettes in China
The image of Choco Pie as a premium snack enjoyed only by those with financial means played a significant role in sustaining its popularity in communist countries.
Orion worked hard to earn consumer trust and reinforce Choco Pie's premium image. In 1995, when mold was found in Choco Pies distributed in southern China, Orion immediately recalled and incinerated all 100,000 products from Chinese stores that September. Although this decision was a short-term financial burden for Orion, it was credited with winning the trust of Chinese consumers.
In its 2006 "China Market Status" report, Orion described Choco Pie as "a luxury item given as a wedding gift and the only product, aside from alcohol and cigarettes, used for advance payments in China, where credit transactions are common."
In Russia, a photo of former President Dmitry Medvedev enjoying tea with Choco Pie was introduced by local media in 2011, earning it the reputation of being a "snack enjoyed by the president." In Vietnam, Choco Pie is still regarded as a premium confectionery.
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