CJ CheilJedang’s frozen rice sales surpass $74 mn in US

South Korean food company CJ CheilJedang Corp. announced on Monday the cumulative sales of its frozen rice products produced and sold in the United States have exceeded 100 billion won ($74 million) this year, with an expected total of over 130 billion won ($96 million) by the end of the year.

This surge comes as the company's revenue has tripled in the past four years since acquiring Schwan's Company in 2019, securing a nationwide cold chain distribution system in the United States.

Flagship products include "Chicken with Korean BBQ Flavor," "Vegetables with Kimchi" and "Shrimp with Soy Garlic Flavor" fried rice, among others. These products are produced at Schwan's Vermont factory and sold through major retail channels such as Walmart, Kroger, and Target.

CJ CheilJedang attributes the popularity of its frozen rice products in the US market to the incorporation of Korean food culture tailored to local consumer tastes. The company added Korean BBQ sauce, kimchi, garlic, and other flavors to the most popular fried rice flavors in the US, such as chicken, vegetables, and shrimp.

The increasing consumption of processed foods made from rice in the US is also a positive factor. According to export data of rice processed foods surveyed by the Korean Ministry of Agriculture, Food and Rural Affairs last year, the US accounted for the largest share of the increase, with a 28.2% year-on-year increase in export value.

CJ CheilJedang's sales of frozen rice products made in South Korea and exported to other countries have also increased significantly. The company's frozen rice export value grew by an average of 22% annually in the past three years (2021-2023). The number of export countries, which was only seven in 2017, has now increased to 17, including Taiwan and Vietnam.

In the future, CJ CheilJedang plans to accelerate the placement of frozen rice products in major mainstream distribution channels in key countries. In Australia, for instance, "Kimchi Cheese Rice Balls" will be available at Costco stores from this month.

"Considering the increasing popularity of K-food in the United States, we are making efforts to disseminate Korean food culture, such as creating a separate 'Asian Food Zone' in stores," a CJ CheilJedang source said. "Following the success of dumplings in the US, we will focus on nurturing the processed rice category, including frozen rice, as the next-generation global strategic item."

Write to Kyeong-je Han at hankyung@hankyung.com