S.Korea's Daesang acquires US food company Lucky Foods

Daesang Corporation, a South Korean manufacturer of food and pharmaceutical ingredients, announced on Monday that it has acquired the US food company Lucky Foods.

Following the completion of its Los Angeles factory last year, Daesang has expanded its production base by acquiring a local food company in the US.

With the acquisition of Lucky Foods, Daesang plans to expand its business in core categories of global operations, including Kimchi, sauces and home meal replacement products.

In March this year, Daesang made the 38 billion won ($29.7 million) investment secured through a capital increase in its subsidiary DSF DE Inc., to acquire a 100% stake in Lucky Foods and all its facilities.

Lucky Foods, established in 2000, is an Asian food specialty company located in Oregon. The company's Seoul Kimchi brand accounts for two-thirds of its overall business, and it diversifies its business with various product lines such as sauces and spring rolls.

Daesang currently distributes its Jongga brand products through major Kimchi distribution channels in the United States. Last year, it completed a large-scale Kimchi factory in the US, becoming the first domestic food company to do so. The acquisition of Lucky Foods will further strengthen Daesang's market presence.

In particular, Daesang plans to invest in expanding and upgrading the Lucky Foods factories. It aims to double the production capacity of Seoul Kimchi and enhance the automated facilities at the factory. The company also plans to strengthen its sales organization, marketing, and R&D capabilities.

Daesang has set its vision for its US operations in 2030 as an Asian grocery company found in every American family. It aims to establish a core business in all categories, including frozen, refrigerated and room temperature, with a focus on Korean cuisines such as Kimchi and red pepper paste. The company also plans to actively pursue new business opportunities.

Write to Ji-Yoon Yang at yang@hankyung.com