Nongshim to open stores in Leclerc, Carrefour; expands plant in US

Nongshim Co., a leading South Korean instant noodle maker, said on Tuesday it is setting up stores within France’s two largest supermarket chains  – E. Leclerc and Carrefour – to expand its offerings beyond its flagship Shin Ramyun.

From next month, Nongshim will supply a wider variety of instant noodles and snacks, including the seafood-based Neoguri and the vegan Soon Ramyun, to the two French distribution channels, it said.

Currently, Shin Ramyun is Nongshim's only instant noodle brand available at the two French retailers.

To make the most of the Summer Olympics in Paris, Nongshim plans to participate in the Korea Expo 2024 and the K-Street Festival to be held in the French capital as well as operating pop-up stores at major retailers in France.

The Korean food manufacturer said it will use its expanded offerings at E. Leclerc and Carrefour outlets as a springboard to enter other European countries such as Spain, Italy, Sweden and Denmark.

TO SET UP A SALES UNIT IN EUROPE

Nongshim said it plans to establish a sales corporation in Europe next year to enhance its presence in the region.

“With our partner Carrefour, we’re considering entering Belgium, Poland and Romania as well as Spain and Italy, where Carrefour is already operating,” said a Nongshim executive.

“We will expand our customer base in Western and Northern Europe and increase supplies through offline promotional events. To that end, we’re going to set up a sales corporation in Europe early next year,” he said.

Launched in 1986, its signature Shin Ramyun has been the dominant leader in the Korean instant noodle market for more than three decades. Shin Ramyun is also popular overseas.

In 2023, Shin Ramyun saw a record 1.21 trillion won ($903 million) in global sales, a 14% increase from the previous year.

US RAMP-UP & NEW EXPORT PLANT IN KOREA

The company said it plans to ramp up its production line at its second US plant in October to increase the output of cup noodle products, which accounted for 63% of its entire US noodle sales last year.

Nongshim operates two instant noodle plants in Los Angeles.

Nongshim's second US factory, completed in May 2022, has played a significant role in its US expansion, increasing supply and driving sales growth through deals with major US retailers like Costco and Walmart.

The company also plans to build a new instant noodle plant in Korea exclusively for exports.

Nongshim said it may build a new factory at its existing plant sites such as Pyeongtaek and Busan. A decision will be made by the end of this year, company officials said.

The company plans to ship most products manufactured at the new factory to Europe where its revenue more than doubled to $61 million last year from $25 million in 2019.

Write to Sul-Li Jun at sljun@hankyung.com

In-Soo Nam edited this article.