Chambungeoppang Launches Local Production and Sales in Russia
Secures Placement in Russia's Top Two Retail Groups
Orion is accelerating its efforts to penetrate the Russian market. By leveraging its local production base, the company has launched 'Chambungeoppang,' expanding its product lineup-which was previously centered on Choco Pie-to include pies, jellies, and biscuits.
On December 29, Orion announced, "Chambungeoppang has secured placement in Russia's top two retail groups." Since last month, the product has been available at approximately 20,000 stores, including discount retailer 'Tender Hyper' and supermarket chains 'Magnit' and 'Dixy,' all operated by Tender, Russia's second-largest retail group. Early next year, the product is also scheduled to be supplied to more than 15,000 stores of 'Perekrestok,' a large supermarket chain under Russia's largest retail group, X5.
'Tender' is Russia's second-largest retail group, with significant influence in the central and southern regions around the Volga River, and is currently expanding its presence nationwide. 'X5' is Russia's largest retail group, operating distribution networks in 72 regions, including major cities such as Moscow, Saint Petersburg, Novosibirsk, and Yekaterinburg.
Analysts attribute the rapid expansion into major retailers, even at this early stage, to Orion's brand credibility built over more than 20 years in the local market, as well as the influence of K-culture. Adapting bungeoppang, a classic Korean street snack, to suit local tastes has reportedly resonated with both buyers and consumers.
In fact, consumers who sampled Chambungeoppang at Tender responded with comments such as, "The chewy rice cake texture inside the moist cake is unique," "The flavor is well-balanced," and "The cute packaging and bread shape are appealing to children." The product received an average rating of 4.9 out of 5 points.
Orion localized Chambungeoppang to reflect the preferences of Russian consumers. Inspired by the Russian food culture of enjoying jam-filled bread and pastries with tea, the company developed 'Chambungeoppang Milk & Orange Flavor,' featuring milk cream and orange jam inside a soft cake, along with chewy rice cake. The product name was set as 'Bungo,' a global brand that has gained recognition in overseas markets. The packaging also features 'Chambungeoppang' written in Korean, along with a cute cat character named 'Bungo (the cat who loves bungeo),' to add a friendly touch for children.
Since establishing its Russian subsidiary in 2003, Orion has continued to expand its local business. The company surpassed a cumulative sales total of 1 trillion won in 2021, and has maintained its growth momentum by expanding its pie, jelly, and biscuit product lines since 2023. As of the third quarter of this year, Orion's sales in Russia reached 237.6 billion won, a 47.1% increase compared to the previous year.
Currently, the Russian subsidiary produces a total of nine brand products at its Tver and Novosibirsk factories. Due to increased brand awareness and surging demand, the factories are operating at 120% capacity. In response, Orion has decided to invest 240 billion won to build a new factory on the Tver plant site. Once completed next year, the number of production lines will increase from 13 to 31, and the annual production capacity is expected to expand from 300 billion won to approximately 750 billion won.
An Orion official stated, "Over the past six years, sales volume in Russia has grown by double digits each year, making it a key pillar of our global business alongside China and Vietnam. We will strengthen our multi-product system to sustain high growth and accelerate the expansion of production capacity to meet rapidly increasing local demand."
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