Daesang Corporation (Daesang) announced on June 19 that it had acquired Lucky Foods, an American food company.
With the recent acquisition of Lucky Foods, Daesang has expanded its production base in the United States, following the completion of the LA plant last year. The company aims to diversify its global business by including kimchi, sauces, and HMR (Home Meal Replacement), which are core categories.
Through a paid-in capital increase of KRW 38 billion in its subsidiary DSF DE in March, Daesang acquired 100% of Lucky Foods shares and all of its facilities. Established in 2000 and located in Oregon, USA, Lucky Foods is an Asian food company.
Lucky Foods' flagship product, "Seoul Kimchi," contributes to approximately two-thirds of its total business. Additionally, the company has been expanding its product lines to include sauces and spring rolls.
The U.S. kimchi market is currently experiencing growth, particularly through mainstream channels. Daesang, already established in major kimchi distribution channels in the U.S., aims to further target the local market through the acquisition of Lucky Foods.
By leveraging Lucky Foods' presence in major distribution channels, Daesang expects to create synergy with its existing business. Lucky Foods sells "Seoul Kimchi," spring rolls, and sauces through these channels.
Daesang plans to invest in expanding and improving the facilities of Lucky Foods. The company intends to double the production capacity of "Seoul Kimchi," which has seen significant sales growth following the COVID-19 pandemic, and further automate the factory.
Moreover, Daesang will enhance Lucky Foods' sales organization, strengthen marketing and research and development (R&D), and actively expand its business with a focus on "Seoul Kimchi," sauces, and spring rolls.
Daesang's vision for its U.S. business by 2030 is to become "The Asian grocery company you can find in every U.S. household." The company aims to establish core businesses in all categories, including frozen, refrigerated, and room temperature products, with a particular emphasis on Korean food such as kimchi and gochujang. Daesang also plans to actively promote new business ventures.
Meanwhile, Daesang "Jongga Kimchi" has entered more than 40 countries around the world, including the Americas, Europe, and Asia such as Taiwan and Hong Kong. At the beginning of last year, it completed the construction of a large-scale kimchi factory in the US for the first time in the Korean food industry and started full-scale production.
