Irish dairy giant Ornua has announced the launch of its Kerrygold butter in South Korea.
The popular Irish brand, which will be sold through major Korean retailers, was unveiled by Minister for Agriculture, Food and the Marine, Michael Creed TD at a Hyundai department store in Seoul during the Irish trade mission to South Korea and Japan.
This is the latest initiative by Ornua to break into the Asian market, which it says is key for Irish dairy. In recent years, the company brought products to China, Singapore and Malaysia.
Due to lower milk consumption in the region, there is significant potential for more Irish dairy exports, the company said. It added that the consumption of dairy products is rising rapidly among Koreans.
“I am delighted to see the continuing expansion of Irish dairy produce into the Asian market. The launch of Kerrygold in South Korea establishes another important route to market for Irish dairy,” Michael Creed TD said. “I have confidence that in the near future, South Korea will become an important market for Kerrygold butter and cheese. As we prepare for a post Brexit environment, it is critical that we build these new markets for premium Irish dairy products.”
South Korea is the world's 11th largest economy, with a GDP of €1.2 trillion and a growth rate of 3.3%. The population of 51 million people is heavily urbanised, with 82% living in cities. Currently, the country imports 150,000t of cheese and butter and its agriculture accounts for only 2.2% of GDP.
The dairy company said its ambition is to grow Kerrygold into a €1 billion global dairy brand in the coming years. In 2016, the company launched Kerrygold Yogurts in Germany, Kerrygold Spreadable in the UK and continued to roll out Kerrygold Irish Cream Liqueur across Europe and the US, which it unveiled in 2015.
“Today marks Ornua’s entry into the South Korean market and is an important milestone in the continuation of our expansion into the key Asian market,” said John Jordan, chief executive at Ornua EMEA and Asia. “Opening new routes to market, such as South Korea, is a central pillar of Ornua’s strategy to develop Kerrygold from a butter brand into a €1 billion global dairy brand. Today’s announcement is also a key step in further diversifying our customer base, a particularly important consideration for Irish dairy farming in the current political environment.”
Last week, the company opened a new 5,000 square foot innovation centre in Chicago, Illinois through its US subsidiary CoreFX Ingredients. It is also currently undertaking a 10,000 square foot expansion at its manufacturing plant in Orangeville, Illinois.
Ornua’s 2016 turnover was boosted in large part by record global sales of Kerrygold butter, reaching €900 million in 2016, with a 20% volume growth in the US.
© 2017 - Checkout Magazine by Kevin Duggan