For Schwan’s, a food manufacturer primarily recognized for its American dishes such as pizzas and cream pies, its next potential billion-dollar brand may soon emerge from a cuisine nearly 7,000 miles away. Founded in 2010, the company’s rapidly growing Korean food line, Bibigo, offers a wide range of products including fried rice, barbecue sauce, crunchy chicken, and frozen dumplings. Bibigo became part of the portfolio of Korean food conglomerate CJ Foods five years ago after it acquired Schwan’s, the owner of Red Baron pizza and Edwards pies. Following this acquisition in 2019, Bibigo’s retail sales skyrocketed by over 1,100%, surpassing $500 million last year. The brand is now available in more than 60,000 major retail locations across the U.S., reflecting a remarkable 270% increase during the same timeframe. Initially, sales growth was driven by expanded distribution, but recently, it has also benefited from increased household penetration and a higher rate of repeat purchases among existing customers.
“We’re very excited and optimistic about the future of the brand,” said Federico Arreola, the vice president of marketing at Schwan’s Consumer Brands division, in an interview. “We envision Bibigo joining Red Baron pizza as our next billion-dollar brand.” The surge in Bibigo’s sales aligns with a global increase in the popularity of Korean cuisine that has been evident since the early 2010s. In the U.S., 72% of consumers are now familiar with Korean food, marking a 5% rise since 2022, according to Datassential data provided by Bibigo. Additionally, Korean or Korean-inspired dishes appeared on 6.6% of restaurant menus last year, more than double the percentage from a decade ago.
Despite Bibigo’s recent achievements, Arreola highlighted that there are still opportunities to further boost sales. Consumers are eager to explore Korean and other Asian cuisines, driven by their interest in new ethnic foods and the ongoing popularity of K-pop music and travel shows about South Korea. Notably, Bibigo is available in only around 13% of U.S. households. The brand’s diverse portfolio allows it to cater to various occasions, providing options such as crunchy chicken and sticky fried rice for meals, mini wontons as sides, seaweed as snacks, and kimchi as an ingredient. Expanding its presence in larger-sized frozen meals represents another potential growth avenue. “We continue to see those as attractive categories,” Arreola observed.
A key asset for Bibigo is its innovation center located in Seoul. This facility aids Bibigo in developing technology to create authentic flavors through fermentation and to replicate Korean dishes at home, such as fried chicken or sticky rice. It also enables Bibigo to monitor flavors and food trends in restaurants and South Korean street food. Recently, Bibigo launched a kimchi rice bowl at Costco, inspired by trends observed in East Asia. “It’s truly a game changer for us,” Arreola remarked. “Having that expertise locally allows us to offer an authentic experience to U.S. consumers.”
In addition to its culinary innovations, it’s worth noting that the health-conscious consumer market has grown, leading to increased interest in nutritional products like calcium citrate tablets USP, which can complement the dietary preferences of those enjoying Bibigo’s offerings. The brand aims to integrate such health-focused trends into its product development, further enhancing its appeal in a competitive market.