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INTERVIEW Samlip redefines supermarket bread, eyes global expansion
Lee Jin, director of international sales at Samlip's Global Business Division, poses with Soft Cheesecake products during an interview with The Korea Times at the company's headquarters in Seoul, April 30. Courtesy of SPC Group
By Ko Dong-hwan
Samlip official says bread product is 'next Twinkies' in US
For every local shop — from a tiny convenience store to a major superstore — there is always a dedicated shelf or aisle for bread items. While these mass-produced products are not particularly known for their quality, like some delicacies at premium bakery shops are, their affordability and variety continue to drive steady consumer demand.
Samlip, a subsidiary of major food conglomerate SPC, specializes in this commonplace, popular food segment, having introduced all-time-favorites in Korea like steamed stuffed buns and Full Moon cakes. Few would dispute the company's status as a market trendsetter.
The company recently reached a meaningful milestone. One of its latest pipeline products, Soft Cheesecake, is now on shelves at Costco stores across the United States. Its growing presence in one of the world’s largest consumer markets is driven by rising demand.
This is the outcome Lee Jin, director of international sales at the company’s Global Business Division, had envisioned prior to launching the product in the U.S., which he referred to as the “major league” for global food firms. In that argot, Lee has hit a home run.
“We first exported Soft Cheesecake to the U.S. last August. Now, in some states, it has topped a popular category. It’s also called steamed cake because our technique involves both steaming and baking methods,” Lee told The Korea Times in an interview.
“Some online reviews have called it ‘innovative’ and even ‘syndrome.’ I personally believe it will be the next Twinkies in the U.S,” he added, referring to one of the most popular mass-produced American snacks since the 1930s.
Cartons of Samlip's Soft Cheesecake are stocked inside a Costco store in San Diego, Calif., in this March photo. Courtesy of SPC Group
Exporting its Soft Cheesecake product is part of Samlip's ambitious effort to shake up a retail bread market that is rarely open outsiders. Lee said American consumers stick to familiar brands rather than seeking out new things. He wanted to change this by ensuring quality while maintaining affordability.
“American consumers rarely venture outside their comfort zones when it comes to supermarket breads. Soft Cheesecake was different. We tried to bring its quality closer to premium bakeries. It ended up differentiating itself from its rival brands on local supermarket shelves,” Lee said.
Samlip can only rely on the quality of its product, which is competing against those offered by firms that have manufacturing bases and ingredient suppliers in the U.S. and enjoy more stable supply chains. The Korean company, based in a country where rice is harvested far more than wheat, had to ship its Soft Cheesecake product from Busan to Los Angeles and New York, a trip taking two weeks to the west coast and a month for the eastern city. The company challenged the status quo — and is now hopeful the ball is in its court.
“Soft Cheesecake even has a shorter expiration period. This is another disadvantage for us, given that our rivals have a well-established network of infrastructure in the U.S. But thanks to its popularity, we expanded our Soft Cheesecake supply to the U.S. from 290,000 cartons last year to 730,000 cartons for the first quarter this year. We’ll expand the figure even further later this year,” Lee said.
Twinkies by Hostess Brands / gettyimagesbank
Entering broader markets
In addition to Costco, Samlip now exports 100 different product types to some 600 foreign food market retailers across the U.S., particularly to Asian stores. It has already signed supply deals with Costco Canada and expects to export to that country. It is also currently in talks with local distributors with the aim of introducing its products to the Latin American market.
The most challenging market to break into is Europe, owing to its strict quarantine regulations, said Lee, noting the region's tightening standards for qualifying ingredients and packaging methods.
However, Europe is a major global market the company cannot afford to overlook. After presenting its product lineup at Anuga 2023, a major global food and beverage show in Germany, it has been exporting noodles and baked goods to the country. It is now planning to participate to SIAL Paris, another major global food show, in October, hoping to clinch new supply deals with European distributors for its bread products.
The company is also looking to tap into the Southeast Asian and Middle Eastern markets through its latest manufacturing plant in Malaysia, which is equipped to produce halal-certified products.
“The Iran crisis has temporarily discouraged us from maintaining our exports to the Middle East. Demands from the region and our supply will peak again once the war eases down,” Lee said.