As interest in Korean culture and food grows overseas, our beverages are increasingly making their way into local markets. Even without our brand, there are more cases of products securing space on supermarket shelves through original equipment manufacturer (OEM) methods.
On the 23rd, according to the food industry, Heungkuk F&B supplied $5 million (about 7.3 billion won) worth of prune juice to Euro Alliance Group, headquartered in Switzerland, through its subsidiary Taylor Farm last year. Taylor Farm is a natural juice specialist that Heungkuk F&B acquired in 2021.
Heungkuk F&B has grown by supplying freshly squeezed juices to cafes such as Starbucks and Ediya. Starting with the acquisition of Taylor Farm, the company is also actively targeting overseas markets.
Recently, the company has been eyeing opportunities in Europe. They believe that as local interest in Korean food rises, the number of consumers choosing products marked "Made in Korea" will increase.
NAMYANG DAIRY PRODUCTS' subsidiary "Healthy People" is producing the popular Vietnamese beverage Malto via OEM methods. Malto is a popular drink among Vietnamese youth. Jang Won-young, a member of a Korean idol group, serves as an ambassador for the product. The OEM method often keeps production origins hidden. However, this product has Korean characters prominently displayed on the packaging. It is labeled in Korean as "sparkling yogurt."
According to a source in the food industry, "Malto is a drink in the form of sparkling yogurt, combining lactic acid bacterial fermentation with carbonation, and they are said to have connected with a subsidiary of NAMYANG DAIRY PRODUCTS while searching for a stable production base." They added, "Given that Vietnamese youth have a high interest in the Korean wave, they thought that labeling in Korean would help enhance the product's image."
HY is also actively targeting overseas markets. HY plans to increase its overseas sales this year, spearheaded by its flagship product, the gut health probiotic "Helicobacter Project Will." To this end, it has established a new institutional sector for global business. In the Thai market, it has collaborated with local dairy company Dutch Mill. HY provided key raw materials, and the local company will produce the products based on transferred technology. HY is also considering conducting business through OEM methods.
In the food industry, there is hope that Korean beverages will succeed in overseas markets, given that Korean ramen has received a positive response abroad. However, it has not been easy so far. Foods that can be used as meal substitutes, like ramen, have demand from tourists and local expatriates, but beverages are different. Choices like carbonated drinks, juice with fruit, and yogurt with probiotics do not taste significantly different from local beverages produced overseas, resulting in relatively low fixed demand from tourists or local expatriates.
A source in the food industry noted, "While there are consumers overseas who miss soju or makgeolli, there haven't been many looking for Korean cider, cola, or juice," adding, "Beverages are entering the market using the positive image of Korea as a weapon. This should be seen as just the beginning."