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Daesang acquires U.S. Lucky Foods to boost global market presence

Collected: 2023.06.20

Distributed: 2023.06.21

Source: Go Direct

Daesang Corp. headquarters in Seoul [Courtesy of Daesang]

South Korea’s food company Daesang Corp. said on Monday it has completed the acquisition of U.S. food company Lucky Foods, in a strategic move to bolster its global market presence with an expanded production base following the completion of its Los Angeles factory last year.

While Daesang has been slow to enter the U.S. compared with other South Korean competitors, such as CJ Cheiljedang Corp. and Nongshim Co., the company sees overseas markets as the future growth engine and is expected to accelerate its efforts to penetrate the global markets.

To acquire Lucky Foods, Daesang increased the capital of its U.S. subsidiary DSF DE by 38 billion won ($30 million) in March. The company used the funds to acquire 100 percent of Lucky Foods and its facilities. With the acquisition of Lucky Foods, Daesang plans to expand its kimchi, sauce and home meal replacement businesses, which are the core of its global business.

Lucky Foods was founded in 2000 as an Asian food-focused company based in Oregon. Lucky Foods’ “Seoul” kimchi accounts for about two-thirds of its business, and the company has diversified into a range of other products, including sauces and spring rolls. As Lucky Foods’ kimchi and sauce products are available in large U.S. supermarkets, Daesang will be able to leverage this to increase its U.S. sales.

Daesang will invest in Lucky Foods’ factory expansion and equipment. To double the production capacity of Seoul kimchi, which has experienced significant sales growth since the pandemic, Daesang will expand automation facilities and significantly strengthen its sales, marketing and research and development organizations.

By Choi Jae-won and Minu Kim

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