Orion is ramping up its global snack business ahead of the peak summer season, targeting 1 trillion won ($690 million) in annual potato snack sales, the company said Thursday.
The company said the business has posted average annual growth of 9 percent over the past three years, driven by localized products and expanded production capacity.
In Korea, Orion introduced fresh-harvest versions of its Pocachip and Swing Chip snacks in June for the summer. Production capacity at its Cheongju plant will also increase by 50 percent when a new production line comes online in the second half.
The company said it will continue developing products tailored to local tastes while increasing production and supply at its overseas operations.
Orion currently sells six potato snack brands with more than 70 flavor variants across Korea, China and Vietnam. The category generated 874 billion won in sales last year, with overseas markets accounting for 73 percent of the total.
In China, O! Karto generated 260 billion won in sales last year, while Swing Chip became the company's second-largest brand in the first quarter, surpassing Choco Pie. Together with Yegam, the three potato snacks accounted for 41 percent of Orion China's revenue last year.
Orion has expanded its lineup with locally tailored flavors in China, helping first-quarter potato snack sales rise 21 percent from a year earlier. The ongoing expansion of its Swing Chip production line is expected to boost output by 25 percent.
"Potato snacks are one of the fastest-growing categories in the global snack market, and we will strengthen our competitiveness through (research and development) and localized production while differentiating our products from global brands," an Orion official said.
By Jeon Ji-woo (jwjeon7625@heraldcorp.com)
