Orion Soars Overseas... 'This Snack,' Not Just Choco Pie, Is Also a Hit

Swing Chip Joins the Ranks of Products with Annual Sales of KRW 200 Billion in a Single Country
Sales in China Reach KRW 202 Billion from January to September
Third After O! Gamja and Choco Pie

China's Swing Chip, Vietnam's Custard, Russia's Choco Pie.

Orion is building global megabrands, including its 50-year-old Choco Pie, on the strength of its overseas business. The company is expanding its brands by focusing on localizing products and sales channels in major markets such as China, Vietnam and Russia, broadening its reach among local consumers and diversifying its core products.

A consumer looks at Oh! Gamja and Swing Chip at a sales channel in China. Photo provided by Orion.

According to the food industry on October 23, Swing Chip has joined the Orion products that have generated more than 200 billion won in sales in a single country. In China alone, Swing Chip sales reached 202 billion won from January through September this year, up 35.6% from the same period last year. This brings the number of Orion products with more than 200 billion won in sales in a single overseas market to three: Oh! Gamja in China, Choco Pie in Russia, and now Swing Chip. Oh! Gamja was the first product in Korea's confectionery industry to exceed 200 billion won in annual sales in a single country in 2015, while Choco Pie also crossed that threshold last year.

China, where Swing Chip is gaining popularity, is Orion's largest market. A tally of Orion's monthly preliminary earnings disclosures shows that its Chinese subsidiary generated 1.3874 trillion won in sales from January through September this year, up 43% from the same period last year. Potato snacks such as Oh! Gamja and Swing Chip are growing rapidly in China, strengthening Orion's position in the local market. In particular, a sharp rise in Swing Chip sales pushed it past Choco Pie to become Orion's second-best-selling product in the first quarter of this year. In response, Orion expanded Swing Chip production lines in the second half of the year and is also moving ahead with the construction of a new snack factory in Langfang.

An Orion official said, "Our sales strategy, backed by product localization and a response to changes in the retail environment, has played a key role. We are actively targeting growth channels such as snack shops, convenience stores and online platforms, in addition to established channels including hypermarkets."

In Vietnam, Orion's second-largest overseas market, Choco Pie continues to hold the top spot. However, An rice snacks, which rank second, and Custard, which ranks third, are growing rapidly after being launched to suit local food culture. An rice snack sales reached 48 billion won from January through September this year, up 3.2% from the same period last year. Custard, Orion's third-best-selling product in Vietnam, recorded sales of 46 billion won over the same period, up 21.1% and enough to threaten An's second-place position. Including Vietnam, global annual Custard sales totaled 154 billion won last year, up 14% from the year before.

The success of both products is seen as reflecting strategies tailored to local food culture and consumer trends. Orion is focusing on meeting demand, including by expanding production lines.

An Orion official said, "The market for packaged bread is growing as demand rises, particularly among younger consumers, for convenient breakfast options. Custard is gaining popularity as a breakfast substitute and a snack for children." The official added, "We plan to build An rice snacks into a brand with annual sales of 100 billion won by strengthening our premium product range and expanding exports to nearby Southeast Asian markets such as Indonesia."

In Russia, Choco Pie is expected to exceed 200 billion won in annual sales again this year, following last year. Choco Pie sales in Russia reached 178.5 billion won from January through September this year, up 9.8% year on year. Taking into account Russia's culture of enjoying cakes and other desserts with tea, Orion currently produces and sells 14 varieties of Choco Pie there, more than at any of its other global subsidiaries. The company plans to sustain its growth by also selling Choco Songi, Fresh Pie and Cham Bungeoppang locally.

On the back of this growth in Vietnam and Russia, Orion recorded sales of 398.3 billion won and 304.7 billion won in the two markets, respectively, from January through September this year. These figures represent increases of 13.3% and 28.2% from the same period last year. Domestic sales rose 2.8% year on year to 880 billion won. While these figures, calculated by adding together monthly subsidiary results, may differ from finalized consolidated results, the growth in overseas markets is clear. Overseas markets accounted for 68% of combined sales at Orion's four subsidiaries, excluding Korea.

Market watchers expect Orion to sustain earnings growth on the strength of its overseas subsidiaries. According to financial information provider FnGuide, the consensus forecast for Orion's full-year sales is 3.7602 trillion won, with operating profit projected at 636.5 billion won. The figures represent year-on-year increases of 12.8% and 14.0%, respectively. While the Chinese and Russian subsidiaries are expected to drive top-line growth, a weaker exchange rate and cost pressures in Korea and Vietnam are expected to weigh on profitability.

This content was produced with the assistance of AI translation services.