South Korea’s confectionary giant Orion Corp. has joined hands with U.S.-based health supplement manufacturer Robinson Pharma Inc. to become a comprehensive food company and make a foray into the bourgeoning health supplement market.

Orion said on Thursday that it has signed an exclusive license contract with Robinson Pharma on July 10 to sell premium formulated nutraceuticals under the U.S. Doctors’ Clinical brand in Korea. Robinson Pharma, which was established in 1989, is a leading manufacturer of nutritional supplements and is the largest producer of softgels in North America. U.S. Doctors’ Clinical - a brand that will be introduced to Korean consumers for the first time by Orion - was developed jointly by 40 medical specialists in the U.S. and has about 30 functional products. Orion plans to begin sales of brand items starting early next year by selecting capsules that are most nutritionally effective for Korean consumers.

Orion has been tapping the health supplement market, which has been expanding in staggering pace in Korea amid health-conscious awareness and fast aging society.

According to the Ministry of Food and Drug Safety, Korea’s functional food market has reached an estimated 2.3 trillion won ($2.04 billion) in 2015.

Orion hopes the move can break its longstanding image as a maker of choco pies and turn it into a comprehensive food company. In a bid to more aggressively promote new businesses and manage affiliates, early last month, Orion split into two entities - Orion Holdings and Orion Corp.

Orion is also pursuing a strategic business agreement with a local dietary supplement manufacturer Novarex Inc. that has the largest number of individually-recognized functional ingredients in Korea. The agreement is the latest in Orion’s efforts to partner with leading health supplement providers from home and abroad to target not only the domestic market but also overseas including China and Southeast Asia where it has already established business network.

By Baek Sang-kyung

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