Since its founding in 1967, Binggrae has become a household name in Korea. The company boasts a diverse portfolio of dairy products, beverages and desserts, including its best-selling banana flavoured milk, Melona ice cream bar, and Yoplait yoghurt.
Thank you for reading this post, don't forget to subscribe!Due to its frequent feature in Korean dramas and variety shows, awareness and demand for Binggrae’s products have skyrocketed worldwide alongside the Hallyu wave.
Binggrae announced in November that Melona ice creams have been launched at Costco in Australia. At these stores, 24-pack bundles comprising eight bars of melon, mango, and coconut flavours each are available.
The company first entered the Australian market last year via leading supermarket chains Woolworths and IGA. Both retailers currently sell Melona, as well as Samanco, a frozen dessert made with ice cream and sweet syrup wrapped in a fish-shaped wafer.
The latter is inspired by a popular Korean street food called bungeoppang (fish-shaped pastry made with red bean paste filling).
Melona and Samanco are also slated to debut at Coles supermarkets this month, further extending Binggrae’s reach in the market.
“We aim to establish Australia as a key hub for global market expansion and will focus on increasing our market share in the region,” the firm said.
This comes after its successful expansion in the US, Europe, and Asia.
Binggrae first began exporting Melona in 1995, targeting the Korean community in Hawaii.
To strengthen its presence, the company established a local subsidiary in San Francisco in 2016 to bolster its sales and marketing efforts. Today, Melona can be found in major retailers such as Costco, and accounts for 70% of sales of Korean ice bars in the US.
In 2023, Melona was exported to European markets, including France, Germany, the UK, and the Netherlands, for the first time.
The brand has seen high sales rates in Asian mart chains across Europe, with sales in the first half of 2024 having tripled compared to last year. To accelerate growth in the region, Binggrae plans to expand its ice bar product line-up in Europe going forward.
Melona is now exported to over 30 countries worldwide, including China and Vietnam where Binggrae has set up subsidiaries.
According to the company, Melona continues to “enjoy strong sales” in North America and South East Asia, where flavours like mango and coconut cater to local tastes and preferences.
Restructuring on the cards
Following a recent board meeting, Binggrae has revealed plans to split into two entities, with the official names subject to change, by May 2025.
Under the new structure, Binggrae Holdings will operate as a holding company, focusing on business investments, and expanding the company’s overseas business and global footprint. It will also manage its subsidiaries, including Haitai Ice Cream, which Binggrae acquired in 2020.
On the other hand, Binggrae will take on the role of an operating company, responsible for the production and sales of dairy products.
The restructuring is aimed at enhancing operational focus and boosting responsiveness to shifting market dynamics.
“This strategic realignment will enable each entity to specialise in its respective areas, driving sustainable growth and long-term success in the food and dairy sectors. Binggrae will strengthen our growth strategy and competitive edge to pre-emptively react to changing market environments.”
Additionally, Binggrae intends to retire 1m treasury shares, equivalent to approximately 10.25% of its total issued stock, as part of efforts to increase shareholder value. The proposal will be reviewed at a future board meeting.
