korea tomatos

7/28/2019 Korea Tomatos

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OTTOGI cor oration

Fresh Tomatoes 100 years

Tomato Ketchup 40 years

with Ottogi in Korea

Young Joon Ham

Ottogi Corporation



OTTOGI cor oration

Korea

1. Area : 100,210km² (109th)

2. Population : 48,875,000 (2010, 24th)

3. Climate : Humid continental climate

4. GDP(nominal) per capita

: $20,591 (2010, 33th)

5. Economy(2010)

-Sixth largest exporter

-Tenth largest importer

(Unit: bil. USD)

GDP Growth (IMF)Korea

Free Trade Agreement of Korea

Effective date Subject

01/04/2004 Chile

01/03/2006 Singapore

01/09/2006 EFTA

01/06/2007 ASEAN

01/01/2010 India CEPA

01/07/2011 EU

01/08/2011 Peru

15/03/2012 U.S.A.



OTTOGI cor oration

OTTOGI Corporation

From 1969 in Seoul, Korea

Mission:

Better Quality

Better Nutrition

Advanced Food

Healthy Life

Sweet Home



OTTOGI cor oration

OTTOGI Corporation

CI

Yum! A Happy Smile of a Child

Slogan



OTTOGI cor oration

Product Line

Turnover in 2011: 1.3 billion USD

Major product Categories:

Curry

Soup

Rice Porridge

Jia Jang

Premix

Rice Sauce

Powder Products

Ketchup

Mayonnaise

Dressing

Spaghetti Sauce

Vinegar

Pickled condiments

Sauces

Oligosaccharide

Corn Syrup

Cake Syrup

Maple Syrup

Fruits Jam

Sugar & Sweeteners

3 Minutes Curry

3 Minutes JjaJang

Korean Soup

Retort Food

Cooked Rice

Washed Rice

Scorched Rice

Prepared Meals

Processed

Grain Foods

Sesame Oil

Soybean Oil

Olive Oil

Grape seed Oil

Margarine

Red Pepper

Flavored Oil

Edible Oil and Fat

Tuna

Mackerel pike

boiled

Sea tangle

Seaweed

Processed

Marine Products

Pepper

Prepared Mustard

Prepared Wasabi

Spices

Roasted Sesame

Seasonings

Instant Ramen

Korean Vermicelli

Wheat Noodle

Noodles

Refrigerated

noodle

Poultry Products

Stew

Dumpling

Dressing

Refrigerated Foods



OTTOGI cor oration

How did Tomatoes Reach Korea?

The Andes

(Home of tomato origin)

Mexico(Cultivar birthplace)

16C

England in 1575

Italy in 1544

Philadelphia

18C

17C

California

18C~19C

17C

Portugal



OTTOGI cor oration

Korea Climate

Annual mean temperature Annual mean precipitation

-20

-15

-10

-5

0

5

10

15

20

25

30

T e m

p . (℃ )

Korea Italy California Xinjiang

0

50

100

150

200

250

300

350

400

P r e c i p r t

a t i o n ( m m )

Korea Italy California Xinjiang

Ref. Korea Meteorological Administration (1971-2000)



OTTOGI cor oration

Tomato Production in Korea

0

50,000

100,000

150,000

200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1970 1975 1980 1985 1990 1995 2000 2005 2010

P r o d u c t i o n o f T o m a t o e s

( 1 0 0 0 M T )

P r o d u c t i o n o f V e g e t a b l e s

p r i m a r y

( 1 0 0 0 M T )

Global Trend

Steady increase inboth tomato andvegetable productions

Korean Trend

Rapid increase of

vegetable productionin 1970 Sharp increase of tomato productionsince 1990

0

100

200

300

400

500

600

700

800

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1970 1975 1980 1985 1990 1995 2000 2005 2010

P r o d u c t i o n o f T o m a t o e s

( 1 0 0 0 M T

)

P r o d u c t i o n o f V e

g e t a b l e s

p r i m a r y

( 1 0 0 0 M T

)

Ref. FAO (Food and Agriculture Organization, 2010)

Tomatoes Vegetables Primary



OTTOGI cor oration

Tomato Production in Korea

<1990> <2010>

<1990> <2010>


83.65

16.35

84.91

15.09

99.22

0.78

96.55

3.45

World (Total)

Korea

-7.7%

+460%99.22 96.55



OTTOGI cor oration

Globally: Tomatoes vs. Other Vegetables, Fruits

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Tomatoes Bananas Watermelons Oninon, dry Apples Grapes

145,752

102,115

89,005

74,25169,570 68,311

P r o

d u c t i o n ( 1 0 0 0 M T )

1st




OTTOGI cor oration

In Korea: Tomato vs. Other Vegetables, Fruits

0

500

1,000

1,500

2,000

2,500

3,0002,698

2,036

1,412

679 615460 417 391 325 310

P

r o d u c t i o n ( 1 0 0 0 M T )

9th




OTTOGI cor oration

Tomato Consumptionin Korea


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Fresh Tomato Consumption

Fresh tomatoes in desserts, juices and salads

Thus, cherry tomato production andconsumption have both increased

Researches reveal that processed tomatoeshave more nutritional values than freshtomatoes do—the demand of processed

tomato products will increase

Consumption of Fresh Tomato

Consumption

(MT)

Consumption ratio (%)

Fresh Juice

Cooking/

Salad

Globe

tomatoes197,083 61.4 33.4 5.2

Cherry

tomatoes127,723 94.5 0.5 5.0

Total 324,806 74.4 20.5 5.1



Timeline: Per Capita

Consumption of Tomatoes in Korea

0

5

10

15

20

25

30

35

1961 1966 1971 1976 1981 1986 1991 1996 2001 2006

k g / c a p i t a

World Europe Americas Africa Asia Korea

Rate of increase in consumption from 1990 to 2007(17yrs)

Korea: 331.0%, World average : 40.6%, Asia average : 121.7%




Consumption of Processed and Fresh Tomatoes

-

5.00

10.00

15.00

20.00

25.00

19902000

2010

k g / c a p i t a

Korea

Processing tomatoes

Fresh tomatoes

-

5.00

10.00

15.00

20.00

25.00

19902000

2010

k g / c a p i t a

The World

Processing tomatoes

Fresh tomatoes

50%

50% 34%

66% 64%

36%

74% 75% 74%

26%25%26%

14.47

18.1321.31

3.62

8.94 10.46



Import of Processed Tomatoes

Ref. The Korea International Trade Association

0

10

20

30

40

50

1988 1993 1998 2003 2008

1 0 0 0 M T

2011



Import of Processed Tomatoes(Raw Material Equivalent)


0

50

100

150

200

250

1988 1993 1998 2003 2008

1 0 0 0 M T

2011



Import of Tomato Paste


0

5

10

15

20

25

30

1988 1993 1998 2003 2008

1 0 0 0 M T

Total OTTOGI

2011



Imports of Other Tomato Products


0

2

4

6

8

10

1988 1993 1998 2003 2008

1 0 0 0 M T

Diced/Whole Sauce Etc(Puree) Ketchup Juice

2011



Regional Ratio of Tomato Imports in Korea


-

5

10

15

20

25

30

35

40

45

50

1988 1993 1998 2003 2008

1 0 0 0 M T

U.S.A China Italy Chile New Zealand

Portugal Turkey Thailand Taiwan etc.

2011



Rate of Imported Processed Tomatoes

73%

11%

1% 9%

5%

1%

2002(32,977 MT)

Paste Diced & Whole

Ketchup Sauce

Etc(Puree) Juice

58%21%

6%

10%

5%

0%

2011(45,819 MT)

Paste Diced & Whole

Ketchup Sauce

Etc(Puree) Juice

Amounts of importing Diced/Whole tomatoes rapidly increased.




Usage of Processed Tomatoes in Korea

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Paste Diced & Whole

Ketchup Sauce

Etc(Puree) Juice

Mostly imported Paste and Diced/Whole tomatoes for production.

Processed tomatoes for retails

Processed tomatoes

for Industry

<2011>




Tomato Ketchup Market in Korea

• 1.3 kg per capita

• Consumer : Industry = 3 : 7

0

20

40

60

80

100

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

T o t a l s a l e s ( M i l . U S D )

P r o d u c

t i o n ( 1 0 0 0 M T )

Production Total salaes



Market share of Ottogi Ketchup

0

20

40

60

80

100

1984 1989 1994 1999 2004 2009

M a r

k e t s h a r e ( % )

2011

87%

Ref. ACNielsen



Current and Potential

Market Growth of Processed Tomatoes

in Korea



1st stage of growth

[1970 ~ 2000]Increase in tomato ketchup production, consumption

The consumption of tomato ketchup based sauces also increased.

(i.e.chicken sauce, pork cutlet sauce)

Total Production of Ottogi Tomato Ketchup

0

10

20

30

40

50

60

1971 1976 1981 1986 1991 1996 2001 2006 2011

1 0 0 0 M T

Launch (1971)

5 MT

(2011)

43,764 MT

Total (1971-2011)

1,026,529 MT



1st stage of growth

The history of Ottogi tomato ketchup commercials (tv)

Ottogi tomato

ketchup for omelets

and burgers

Ottogi tomato

ketchup gave

Kkakdugi(a kind of

kimchi) more flavor

Ottogi tomato

ketchup made of red

tomatoes

Rich and delicious

Ottogi tomato

ketchup



1st stage of growth

Introduced the excellence of processed tomatoes-Presented consumers with tomato seedlings

(Seedling give-away events for 40 years)

-12 times of processed tomatoes give-away events in 1984

-Anniversary of launching tomato ketchup in 2011



2nd stage of growth

[2001 ~ Now]

→ Expansion of tomato sauce market

Processed Tomatoes Imports

(Raw Material Equivalent)

0

50

100

150

200

250

1988 1993 1998 2003 2008

1 0 0 0 M

T

2011



2nd stage of growth

Expansion of tomato sauce market (for food service)- Increase of business using processed tomato

0

100

200

300

400

1990 1995 2000 2005 2011

U S D

A Monthly Average Eating Out Expenses

Ref. : Statistics Korea 「Consumer research」(urban, two or more household)



2nd stage of growth

Expansion of tomato sauce market (for food service)

2000 2005 2010

137

250

385

The number of pizza stores

(Mr. Pizza)

2005 2010

30

190

The number of spaghetti stores

(Hans’ deli)

2000 2005 2010

601

800890

The number of fast-food stores(Lotteria)

Ref. : Food statistics source book (2011), Fair Trade Commission



OTTOGI cor oration

2nd stage of growth

Market growth of spaghetti sauce for retails

Sponsored a Korean television drama “Pasta” in 2010

→ Spaghetti boom in Korea

sales progress of Ottogi spaghetti sauce

0

2

4

6

8

10

12

14

16

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011

T o t a l s a l e s

( M i l . U S D )

P r o d u c t i o n

( 1 0 0 0 M T )

Production Total sales

Sales progress of Ottogi spaghetti sauce



OTTOGI cor oration

2nd stage of growth

Hwa-Cheon Tomato Festival

-Sponsoring the festival at a major tomato producing region of Korea-Hosted 9 times from 2003 to 2011

-about 60,000 people participated

“Spaghetti for 1,000 people”

Ottogi’s various public activities concerning spaghetti sauce

→ Contributed to market growth of spaghetti sauce for retails



OTTOGI cor oration

Potential 3rd Stage of Growth!

1st stage of growth : Tomato ketchup

2nd stage of growth : Tomato sauce

(pasta, pizza, etc)

Expected 3rd stage of growth

concerning processed tomatoes in Korea

Canned Tomato

Tomato Juice



OTTOGI cor oration

Tomato = Healthy

For long-term increase of tomato consumption

Publicize researches over health benefits of tomatoes

(let people know how delicious AND healthy tomatoesreally are)

<Nutritional supplement with Lycopene>

“NatureBy” launched in 2012

Red functional food serieswith lycopene



OTTOGI cor oration

To Sum Up…

Ottogi’s processed tomato market has expanded through

tomato ketchup (1st stage of growth) and various tomatosauces (2nd stage of growth).

Ottogi has been the pioneer corporation for both stages of growth, always striving to introduce the known benefits of

processed tomatoes to Korea.The company continuously strives to lead the market andgo through 3rd stage of growth—carry out the company’smission again (better quality, better nutrition, advanced

food).With processed tomatoes, we once again

attempt to help build households

full of flavor, full of happiness.

korea tomatos

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