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Before the Lunar New Year tomorrow, shoppers in Chinatowns and Asian food marketsacross the U.S. have been stocking up on holiday staples, which for many celebrants include dumplings.While General Mills (GIS)Wanchai Ferry is the biggest name in frozen dumplings in China, the brand isnt sold in the U.S.Thats where CJ CheilJedang (097950:KS), a large South Korean food manufacturer that wasonce part of Samsung Group, sees an opportunity.
CJ CheilJedangmaker ofAnnie Chunsproducts and Bibigo-brand dumplingshas two plants in California that together can produce 9,000 tons of dumplings annually. Thats enough, the company claims, to give it a market-leading position. And to expand its footprint on the East Coast,CJ CheilJedang acquired 80percentownership of three subsidiaries of Brooklyn (N.Y.)-basedTMI Food Group in 2012 for $46million:Chef One(Chinese dumplings, buns, spring rolls);Twin Marquis (Chinese noodles and dumpling wrappers); and distributor TMI Trading.
The U.S. markets for Asian-style dumplings and noodles, by CJ CheilJedangs estimate, are worth about $300 million and $1.3 billion, respectively, and the company has an appetite to own the biggest portion of the trade. We will not stop in our quest to achieve the globalization of Korean cuisine and our goal to achieve the hallowed mantle of No. 1 Asian food company in the U.S., Hyun-soo Shin, the companys global food business vice president, said last year.
TMI, founded in New Yorks Chinatownin 1989 by Hong Kong natives Joseph and Terry Tang,describes itself as one of the countrys largest dumpling makersit produces roughly40,000pieces an hour. Revenue from frozen dumplings was about $8.4 million last year, and the company also sells millions of dollars worth of noodles and dumpling wrappers, according toTMI sales and marketing associateSusie Moy.
Shaped like ancient gold and silver ingots and symbolizing wealth, dumplings are a traditional Chinese New Years food. Moynoted in an e-mail that demand for all products increases by about 15 percent during the Chinese New Year, and dumpling sales typically jump 50 percent during the winter. We have added another production line to meet demands, she said.
The company hopes for more, too: We want to make the dumpling as American as the hot dog, TMIs Terry Tang told theNew York Daily News.
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