The Korea Herald

지나쌤

Organica’s revenue skyrockets with focus on value in nature

By Korea Herald

Published : March 30, 2017 - 16:36

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A natural food company that initiated a food revolution from a small workshop in Samcheong-dong in 2012 is making its mark in the South Korean food industry.

Organica, the organic food developer under Herald Corp., saw its annual revenue jump 108-fold to 86.5 billion won ($77.4 million) in 2016 from 800 million won in 2013.
 
According to the company’s forecast, its revenue is likely to hit 120 billion won this year, which will put the firm on the list of the nation’s 100 largest food companies.
Organica products sold at Starbucks chains Organica products sold at Starbucks chains


Besides the growth in the sales figure, industry officials have paid particular attention to Organica turning its vision into reality by successfully encouraging consumers to believe that change in diet brings change in life.

The company initiated the “Natural Food Movement” to promote organic farming and organic food consumption in the mainstream food industry, which had been rarely discussed in Korea in the past.

The origin of Organica dates to 2012 when a workshop for research and development of eco-friendly juice was established in Samcheong-dong, a hilly neighborhood in central Seoul.

Then Herald Ecofarm, the company pioneered the organic juice market by applying a cold press technique called high pressure processing to produce nutrient-preserved healthy juice drinks under the brand “Just Juice.” With private raw food chef Christine Cho jointly developing the “Just Juice Cleanse” detox juice line, Organica’s products began to earn popularity in earnest.

In late 2013, the company was renamed Organica and expanded its business into eco-friendly grains and additive-free natural snacks by acquiring the nation’s largest eco-friendly grains company Cheonbo Natural Food.

In 2016, Organica acquired convenience food producer Damyeon to expand its premium fresh food offerings. Renamed Organica Kitchen this year, the company supplies prepackaged meals, triangle kimbap and sandwiches to two of the three major convenience store chains here -- CU and 7-Eleven. Organica Kitchen aims to provide distinctive convenience foods that are highly nutritious, low-calorie, additive-free and less processed, the company said.

Since its inception, Organica’s greatest engine for growth has been “value,” according to company officials, who believe that if the company keeps the value, profits naturally follow.


Putting value in nature is shown in the company’s strict standard in preserving the nutrients and taste of the natural food as much as possible and minimizing the processing and artificial additives. The Organica Standard is applied to all products of Organica, company officials said.

Innovation and aggressive investment are also cited as another growth engine for Organica. While still keeping the value in eco-friendly, healthy and natural food, the company has been acquiring competent firms to secure wider capacity to seek new growth.

Organica’s product labels, which often include the words “Korea’s First,” are a sign of the continuous innovation of the company. The company was the first in Korea to introduce the Vegetarian Cleanse Program and the first to launch its Cleanse Salad and Bistro Box on the local market jointly with Starbucks. The company has supplied global superfoods, such as quinoa and hemp seeds, to supermarket chains such as Costco and E-Mart.

Observers say it is quite rare for a food company to rapidly secure distribution channels to all levels of markets from the low-end to premium-end in discount stores, convenience store chains and coffeehouses -- all within two to three years.

Organica has been aggressive in facility investment as well. The company has built four production facilities -- in Anseong, Gyeonggi Province, for juice, in Gimpo, Seoul, for convenience food, in Chungju, North Chungcheong Province, for whole foods and natural snacks, and in Gwangju for eco-friendly vegetables. The company plans to expand investments in overseas markets this year.

“Organica will take the next step in the global market. We have already begun shipments to Japan, the US and China,” said Herald Corp. Chairman Jungwook Hong.

“The company will achieve 1 trillion won in sales within five years and become the best natural food company in Asia.”

By Kim Yoon-mi (yoonmi@heraldcorp.com)