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September 4, 2018

Kahiki Foods eyes “acceleration” under CJ CheilJedang

Kahiki Foods, a US supplier of Asian frozen foods, believes it can grow more rapidly under new owner CJ CheilJedang, the South Korea-based food manufacturer.

Kahiki Foods, a US supplier of Asian frozen foods, believes it can grow more rapidly under new owner CJ CheilJedang, the South Korea-based food manufacturer.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The deal, struck for an undisclosed sum, is expected to be finalised this month. It sees CJ CheilJedang acquire a business, which owns brands including StirFresh meals, from US conglomerate Abarta and the Tsao family.

“CJ CheilJedang has a very successful track record, particularly in the food industry in Asia, and they have ambitious plans for their food business in the US,” Kahiki Foods CEO Martin Kelly, who will stay with the business, said. “With the additional support and resources that a global food company can provide, we think we can really accelerate the performance of our iconic brand in the growing and dynamic Asian frozen food category.”

Abarta acquired a controlling interest in Kahiki from the Tsao family in 2007. Co-founder Alice Tsao said: “Our family’s history with the company goes all the way back to 1978, and we have watched the company grow and change profoundly over the years. While we will no longer have a role in the company, we are excited about the future for all Kahikians, and look forward to hearing about Kahiki’s success with new ownership.”

Earlier this summer, CJ Cheiljedang was reported to have been eyeing US frozen-foods group Schwan’s.

In June, Seoul-based CJ Cheiljedang responded to speculation it was targeting Schwan’s by issuing a stock-exchange filing that read: “As part of efforts to strengthen competitiveness in [the] overseas food business, we are considering the acquisition of a US processed food company but nothing has been decided so far.”

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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