CJ CheilJedang builds up future food materials business

CJ CheilJedang, following an organizational reshuffle, will focus on the development of future food such as food ingredients and alternative proteins. The plan is to maximize synergy between its food and bio sectors by moving functions from both units to its new food and nutrition tech (FNT) department.

The company on Sunday announced the launch of the FNT unit and reshuffle of its business structure into the four pillars of food, bio, feed and care, and FNT to focus on the development of high-value future-oriented businesses such as food materials, nutritional solutions, and alternative and culture proteins

South Korea's food giant said it expects synergy between the original technology of its bio unit such as microbial fermentation and strain development and the marketing and quality management capacity of its food operations.

CEO Choi Eun-suk said, "Matching the (parent CJ) group's four growth engines of culture, platform, wellness and sustainability, CJ CheilJedang will aggressively take on the FNT challenge." 

"Given the sector's extremely high growth potential, we want to make it a new growth engine for the future," Choi added.

The FNT unit will be run as a single entity with departments of planning, operations, new business development, marketing and R&D.

A CheilJedang source said, "For the FNT unit to position itself as a 'total solution provider' in the food and nutrition sector, we will focus on boosting our raw materials competitiveness, streamlining R&D, and making strategic investments," adding that sales in this industry will double from about 1 trillion won ($760 million) this year to 2 trillion won by 2025.

Write to Soo-Jung Ha at agatha77@hankyung.com