CJ CheilJedang will reorganize its existing food- and bio-centered business structure into three institutional sectors. It plans to shed marginal businesses with low growth and profitability and pursue a revamp focused on core businesses.
On the 1st, CJ CheilJedang said it will overhaul its existing business structure, which had been divided into "food" and "bio," into three institutional sectors: ▲ lifestyle foods ▲ technology materials ▲ key materials.
Chief Executive Officer Yoon Seok-hwan of CJ CheilJedang said, "The aim is to secure future growth opportunities by boosting execution through strategies tailored to the essence and purpose of each business," adding, "We will reshape our fundamentals with a stronger business structure, maximize competitiveness, and evolve into a global lifestyle leading company."
CJ CheilJedang said the three newly launched business institutional sectors will each take on a clear role and drive the company's future growth.
The lifestyle foods business institutional sector will serve as the "Global K-Food Center." Centered on the "Bibigo" brand, it plans to promote global strategic products (GSP) such as dumplings, chicken, P-rice (processed rice), sauces, and kimchi to spread Korean food culture and lifestyle experiences to consumers worldwide.
The technology materials business institutional sector will act as the "Next Solution Engine" that pioneers new markets based on differentiated research and development (R&D) capabilities and technological competitiveness. Representative businesses include "nucleotides," a seasoning ingredient competitive in global markets; "TasteNrich (TnR)," a natural seasoning ingredient; and "PHA," a bio-based plastic material gaining attention as eco-friendly. CJ CheilJedang said it will create high added value through a solutions business tailored to market trends and customer demand.
The key materials business institutional sector encompasses feed amino acids such as lysine and tryptophan; general materials such as sugar, flour, and cooking oil; processed materials such as oligosaccharides and premixes; and new materials such as allulose. It will operate as a "Key Ingredient Provider" organization that boosts profitability through synergies among raw material businesses. The plan is to build new business models and create a sustainable profit structure.
Along with this organizational reshuffle, CJ CheilJedang finalized the executives who will lead each institutional sector. The lifestyle foods business institutional sector will be led by CEO Gregory Yep. Yep is an expert who has driven research and development and business innovation at global food and nutrition companies for more than 30 years and has served as head of CJ CheilJedang's food business institutional sector since last year.
The technology materials business institutional sector will also be headed by CEO Yoon Seok-hwan. Building on experience leading technological innovation in the bio business institutional sector, Yoon will focus on transforming the technology materials business into a solutions-centered, high–added-value organization.
The key materials business institutional sector will also be headed by Kim Chan-ho, head of the strategy support institutional sector. Since becoming CEO of CJ Foodville in 2020, Kim has been recognized for leading a turnaround to profit and driving global expansion, including K-bakery.
A CJ CheilJedang official said, "This restructuring is a disruptive change and innovation aimed at elevating institutional sector competitiveness to the world's highest level by deeply considering the essence of the business," adding, "We will strategically reallocate resources and capabilities to respond swiftly to market changes and lead future growth."