CJ CheilJedang is zeroing in on the Middle East as the next region for expanding the territory of K-food and is scaling up its business on the ground.
CJ CheilJedang said on the 20th that it signed a memorandum of understanding (MOU) for business cooperation, including product distribution, with UAE corporations Al Khayat Investments in connection with the Korea-UAE Business Round Table held in Dubai on the 19th.
AKI is a corporations doing business in multiple sectors, including food and other consumer goods, and distributes products through partnerships with more than 200 global and local brands, backed by an extensive sales network spanning the UAE and neighboring Middle Eastern countries.
CJ CheilJedang is expected to broaden its sales channels to major distribution channels in the Middle East through AKI's distribution network. The two sides plan to expand cooperation to joint product development and operation of local production facilities.
The Middle East is a region where the processed food market is growing rapidly, based on a high population growth rate and consumers with strong purchasing power. It is also drawing attention as a new market for spreading K-food because it is located to connect South Asia and North Africa, which have similar Islamic cultures.
In particular, the UAE and Saudi Arabia, which CJ CheilJedang has designated as core countries, are the region's economic leaders with significant influence on surrounding areas, and demand for K-food is growing among young consumers with extensive K-culture experience, making them suitable as forward bases for business expansion.
CJ CheilJedang's strategic items to target local tastes are halal-certified seaweed snacks and noodles. Bibigo seaweed snacks are popular as a "healthy snack" in the United States and Europe, and CJ CheilJedang plans to solidify Bibigo seaweed snacks' market position by leveraging the popularity of Korean seaweed.
Leveraging Bibigo's local brand awareness built with seaweed snacks, Bibigo stir-fried noodles will also be developed as a key product. Bibigo stir-fried noodles were first introduced in Thailand and Malaysia and are gaining popularity with distinctly Korean flavors such as spicy tteokbokki, cheese tteokbokki, kimchi, K-chicken, and smoky K-chicken.
CJ CheilJedang plans to collaborate with local corporations with distribution networks to expand placements of Bibigo seaweed snacks and stir-fried noodles in major local distribution channels.
A CJ CheilJedang official said, "The strategy is to use local corporations' distribution networks to increase sales of strategic items, broaden the product lineup, and then enter neighboring countries such as Qatar and Kuwait."