SEOUL --Jeongyookgak, a popular South Korean online butcher shop, has acquired Chorocmaeul, a domestic organic food product brand, in an effort to create synergy by adding organic food product lineups to its quick commerce service. The organic food brand is popular among mothers who wish to feed their young children with healthy and clean food.
Quick commerce services include various fast delivery services such as an on-demand instant delivery service that delivers groceries and other products as soon as an order is made and an overnight delivery service that delivers parcels during the night so customers can pick up items in the morning. South Korea's quick commerce market stood at 300 billion won ($244.6 million) in 2021.
The online meat store said that the company signed a sales and purchase agreement (SPA) with Daesang Holdings, the holdings company of South Korea's major food manufacturing group, to acquire a 99.57 percent stake in Chorocmaeul for 90 billion won. "We will work to change the food market's trend," Jeongyookgak CEO Kim Jae-yeon said in a statement on March 17. The CEO stressed that the two companies specialized in different sectors of the food market will create synergy.
Jeongyookgak was launched in 2016 and garnered popularity from young working people and housewives for its same-day delivery service. Customers living in Seoul and nearby cities can order meat before noon to receive their items by the evening. The online butcher shop said that the company will expand its last-mile delivery service using its own logistics solution called "Jeongyookgak Runs." Chorocmaeul started off as a small organic agricultural product retailer in 1999. The company specializes in various food products made with organic ingredients including rice, sauces, snacks and other processed food.
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