This photo provided by Daesang Corp. shows its kimchi products.
SEOUL, June 19 (Korea Bizwire) — South Korea’s leading kimchi maker Daesang Corp. said Monday it has acquired U.S. food company Lucky Foods as part of its efforts to expand its kimchi business in the United States.
Daesang said it acquired all of the shares and facilities of Lucky Foods after securing a 38 billion won (US$29.7 million) fund through a paid-in capital increase.
Founded in 2000, Lucky Foods is an Asian food company based in Oregon whose main products include Seoul Kimchi, Korean style sauces, including Seoul Gochujang, and spring rolls.
The products can be found at major distribution outlets in the U.S., according to Daesang.
Kimchi is a traditional Korean side dish normally made of fermented cabbage, salt and hot peppers, and is eaten with almost all meals.
Daesang said the takeover is expected to help the company expand its food business in the U.S., as it aims to become the Asian grocery company that can be found in every U.S. household by 2030.
Daesang plans to increase the number of Lucky Foods’ factories to double the production capacity for Seoul Kimchi and also develop new business.
Daesang is South Korea’s biggest exporter of kimchi. In 2022, South Korea exported US$141 million worth of kimchi, and Daesang’s Jongga Kimchi accounted for about half of those exports, according to the company.
Jongga Kimchi is exported to about 40 countries around the world, including the Americas, Europe, Taiwan and Hong Kong.
Last year, Daesang constructed a large-scale kimchi factory in Los Angeles, becoming the first South Korean company to build such a facility in the U.S.
(Yonhap)
