CJ Grinding Down Pulmuone in Tofu Market
By Park Hyong-ki
Staff Reporter
CJ is grinding down the dominance of Pulmuone in the nation's market of packaged tofu products. The two corporations are key competitors in the Korean food industry.
According to market researcher Aztec Force, ever since CJ introduced its tofu product ``Happy Bean'' in May 2005 under its Paeksul brand, its market share has been climbing rapidly and eating away Pulmuone's ``Tofu'' territory.
As of last month, CJ's Happy Bean tofu held a market share of about 18 percent after it completed the construction of its tofu factory in North Chungchong Province, rising up from a mere 3.9 percent in January last year.
Consumers' love for CJ Paeksul packaged tofu has pushed down Pulmuone's market share to about 56 percent last month, from 65 percent in the latter half of 2006 and 75 percent in early 2006.
Besides tofu, CJ Paeksul makes cooking oil, flour and sugar, while Pulmuone concentrates on noodles, kimchi and dumplings.
CJ's use of ``100 percent natural Korean beans'' without additional artificial substances makes it attractive to customers, especially housewives, seeking well-being side dishes, marketing experts claim.
With the momentum and the expansion of sales networks into large discount stores nationwide, CJ predicts that it could obtain a 25 percent market share by the end of this year.
The Korean tofu market has been growing 10 percent year-on-year since 2000. The market value currently stands at over 400 billion won, and packaged tofu products are expected to take up over 60 percent of the market from the current 54 percent, the market researcher said.
Daesang Corp., another prominent company in food and spices, is also keeping up in the game with its ``Chongga Tofu,'' gaining about a 10-percent market share.