CJ CheilJedang (097950.KS) is expanding its lineup of packaged foods that draw on the recognition of established brands such as Bibigo, Hetbahn and Dasida.
The company said on the 10th that it will increase the number of products built around its brand intellectual property (IP) sold at convenience stores from the current 13 to 16 by the end of this month. The additions are two "Hetbahn Rice Latte" drinks and a "Matbam Milk Tea Latte."
CJ CheilJedang has already extended Hetbahn, its packaged-rice brand, into frozen desserts and beverages. On the 4th, it launched three "Rice Cream" products using Hetbahn — white rice, black rice and farro brown rice varieties — and it had earlier released "Gim Nachos" and "Gim Popcorn" made with Bibigo laver, along with snacks incorporating the savory flavor of Dasida.
The strategy uses sales data and consumer responses gathered at convenience stores to develop products, before expanding sales channels to large discount stores and online. It is also translating into sales results. From March this year through the 10th of this month, products using brand IP recorded cumulative sales of about 7 million units and roughly 15 billion won ($10.8 million) in revenue.
CJ CheilJedang plans to differentiate products according to consumption patterns by distribution channel and to broaden the scope of its brand IP use going forward. It is also targeting overseas markets. The "Gim Nachos" and "Gim Popcorn" made with Bibigo laver are being prepared for entry into the U.S. market, and the company plans to review overseas sales of products using other brand IP in phases.
A CJ CheilJedang official said the company plans to "provide consumers with new brand experiences while continuing to expand its business using brand IP in domestic and overseas markets."
