The owner of Red Baron pizza is exploring Korean cuisine as its next potential billion-dollar product offering.

Revenue generated from its Bibigo brand, featuring a variety of products like fried rice and frozen dumplings, has surged by over 1,100% since 2019, driven by increasing interest in East Asian culinary offerings.

For Schwan’s, a food manufacturer better known for its American fare like pizzas and cream pies, its next $1 billion brand could soon come from cuisine originating nearly 7,000 miles away.

The company’s fast-growing Korean food offering Bibigo was founded in 2010. Today, Bibigo sells everything from fried rice and barbeque sauce to crunchy chicken and frozen dumplings. It was added to Korean food conglomerate CJ Foods’ portfolio five years ago following its acquisition of Schwan’s, the owner of Red Baron pizza and Edwards pies.

Since its acquisition in 2019, Bibigo has experienced remarkable growth, with retail sales surging over 1,100%, reaching over $500 million last year. The brand is now available in more than 60,000 major retail outlets across the U.S., marking a 270% increase from the same period. Initially, sales growth was driven by expanding distribution channels, but lately, it has been fueled by increased household penetration and higher repeat purchases among existing customers.

Federico Arreola, Vice President of Marketing at Schwan's Consumer Brands division, expressed enthusiasm about Bibigo's future, envisioning it as the next billion-dollar brand alongside Red Baron pizza.

Bibigo's sales boom aligns with the global rise in the popularity of Korean cuisine since the early 2010s. In the U.S., awareness of Korean food has risen to 72% among consumers, up 5% from 2022. Korean-inspired dishes are also becoming more prevalent in restaurants, appearing on 6.6% of menus last year, doubling over the past decade.

Despite Bibigo's recent success, Arreola believes there are still untapped opportunities for sales growth. He attributes consumers' growing appetite for Korean and Asian cuisines to their interest in exploring new ethnic flavors, fueled by the popularity of K-pop music and travel shows about South Korea. Moreover, Bibigo products are currently available in only about 13% of U.S. households.

Bibigo's diverse product portfolio caters to various usage occasions, offering options for meals, sides, snacks, and ingredients. Arreola sees potential for further growth by expanding Bibigo's presence in larger-sized frozen meal categories, considering them attractive segments for future development.

Source: Fooddive