ajunews Tuesday,5 March 2024

CJ Cheiljedang's U.S. subsidies integrated into unified entity to promote 'K-food'

By Lim Chang-won Posted : August 17, 2022, 17:13 Updated : August 17, 2022, 17:27

[Courtesy of CJ CheilJedang]

SEOUL -- CJ Cheiljedang, a key subsidiary of South Korea's food and entertainment conglomerate CJ Group, will integrate two U.S. subsidies including Schwan's Company, a major food processing company, into a unified entity as part of efforts to become a top ready-to-eat Asian food provider in the American market.

In early 2019, Cheiljedang, the world's largest producer of an amino acid used as additives for animal feed and food additives, acquired Schwan's for $1.85 billion. Schwan's sells frozen foods from home delivery trucks, in grocery store freezers, by mail, and to the foodservice industry.

Cheiljedang said in a regulatory filing on August 17 that Schwan's would incorporate CJ Foods USA (CJFU) as "a full subsidiary to increase management efficiency and maximize business synergy to enhance corporate value." The integration will be carried out through an exchange of shares without additional investment. 

CheilJedang would use sales platforms of Schwan's and CJFU to find growth opportunities based on Korean food (K-food) and integrate infrastructure, systems, and human resources to streamline operations. Schwan's will play the role of CheilJedang's American business headquarters to promote consistent business strategies and make decisions faster on all distribution channels.

Cheiljedang has promised to nurture Bibigo, a Korean cuisine brand, as a global brand. The company has actively acquired foreign food companies such as Kahiki Foods, a Gahanna-based maker of packaged and frozen Asian foods, and Mainfrost of Germany. Bibigo dumplings have gained popularity among foreign fans. 

CheilJedang has promised to provide a diversified lineup of foods consumed locally. The parent CJ group has subsidiaries specializing in food, food service, pharmaceutics, biotechnology, entertainment, media, home shopping and logistics.

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